Chime backer Lauren Kolodny bets on AI to revolutionize estate processing
In a significant move that underscores the growing intersection of artificial intelligence and traditional financial services, Lauren Kolodny, a respected partner at Acrew Capital and a consistent presence on the Forbes Midas List for three years running, has placed a substantial bet on AI’s power to revolutionize the often-arduous process of estate settlement. This latest investment sees Kolodny leading a $20 million Series A round for Alix, an innovative startup poised to transform how families navigate the complexities of managing a loved one’s estate.
Kolodny’s track record of identifying and backing disruptive technologies is well-documented. She was famously the sole venture capitalist among 100 pitches who recognized the potential in Chime, the fledgling neobank, in 2016. Her crucial $9 million Series A extension investment helped propel Chime from near collapse to a remarkable $14.5 billion public valuation last month, a testament to her foresight in democratizing access to financial services for everyday people.
The inspiration behind Alix stems from a deeply personal experience of its founder, Alexandra Mysoor. Witnessing her best friend’s struggle to settle her late mother’s estate, Mysoor personally undertook the task, which consumed an astounding 900 hours over 18 months. Her ordeal involved a labyrinth of calls to banks, locating disparate 401(k) accounts, canceling various services, and meticulously distributing assets—a process she describes as “paper-driven,” “archaic,” and overwhelmingly difficult, often leaving grieving families to Google unhelpful to-do lists or pay thousands to attorneys who cover only a fraction of the work.
Mysoor’s challenging experience illuminated a critical pain point that AI is now uniquely positioned to address. Alix leverages artificial intelligence to automate the most labor-intensive aspects of trust administration. This includes intelligently scanning and extracting vital data from complex documents, pre-populating intricate forms with precision, and streamlining communications with financial institutions—tasks traditionally fraught with manual effort and potential errors.
For Kolodny, the problem Alix is solving resonated profoundly. Despite economic projections indicating that trillions of dollars will transfer to millennial and Gen Z generations over the next two decades, the administrative burden of estate settlement largely remains a significant emotional and logistical challenge for those coping with loss. While some companies, such as Empathy, offer valuable bereavement support including assistance with closing accounts, Kolodny observed a glaring absence of comprehensive, start-to-finish estate settlement services.
“How is it possible that there’s this messy problem that involves so much project management that there aren’t even meaningful services around?” Kolodny shared with TechCrunch. “It was this real aha moment for me. This is exactly the kind of problem that AI should be solving.” She firmly believes that Alix represents a vanguard, pioneering a new wave of AI-powered startups designed to democratize complex financial and administrative processes, making them accessible beyond the ultra-wealthy.
Alix’s transparent fee structure is set at 1% of an estate’s total value. For inheritances under $1 million, clients can anticipate costs ranging between $9,000 and $12,000, with the final price tailored to the estate’s specific complexity, offering a clear alternative to the traditional, often opaque and fragmented, approach to estate administration.
