StartupsEverywhere: Jack Boudreau, Founder, Habits
This profile is part of #StartupsEverywhere, an ongoing series highlighting startup leaders in ecosystems across the country. This interview has been edited for length, content, and clarity.
Tech to navigate personal finance
After a career in financial services, Jack Boudreau knew he wanted to improve access to financial advice. He founded Habits, a marketplace that helps individuals and families find their perfect financial advisor. We sat down with Jack to discuss AI, regulation, and more.
Tell us about your background. What led you to Habits?
I started my professional career at J.P. Morgan, beginning as an analyst and eventually rising the ranks until the concept of Habits came to mind. Early on, I have always been an advocate for financial literacy, but following my 6 years in financial services, I ultimately took the leap to focus on making top tier financial services more accessible to my generation.
What is the work you all are doing at Habits?
Habits is a marketplace similar to companies like Airbnb and Uber, which acts as a middle ground for individuals offering services and customers using those services. We connect our customers with financial advisors–where rideshare apps have drivers for hire, we have financial advisors. We work with financial institutions and advisors who have been thoroughly vetted by our team. Our typical customer has never searched for or worked with a financial advisor before, Habits is designed to make that process as simple and accessible as possible–utilizing AI to match customers to advisors based on their needs and specialities respectively. While we officially launched February, we’ve been conducting beta testing since last year.
How does AI play a role in your product?
Our main product is the matchmaking algorithm, which relies on AI and information about the clients and advisors. We use API integrations to aggregate users’ external financial account information from their financial management or digital banking applications. From there, we collect additional input from users about what they’re seeking in a financial advisor. With this information, we leverage a large language model to identify top advisor matches that are theoretically well-suited to each family’s needs. The user then has the opportunity to look at other advisors, if they wish.
How have you navigated the regulatory environment, and how has it impacted your startup journey?
Our biggest challenge is navigating the patchwork of state regulations. As a small company, we’re nimble enough to pivot, but compliance variations across state lines cost us valuable time and resources. Even when one state makes a small regulatory change, it’s a headache. It limits our ability to scale, as we often have to completely re-engineer our systems from the ground up to meet each state’s compliance requirements. Having a national standard in place would give us more time to innovate and expand our business.
What has your capital-raising journey been like? What do you wish policymakers knew about raising capital for startups?
It’s a tough process, and only a small percentage of startups secure funding. Candidly, as a white male who attended a private college and worked in financial services, I recognize that I’ve had an easier time getting in front of investors than many women, minorities, and immigrant founders.
We also need to make debt financing more accessible, especially for founders who can’t personally guarantee a loan. Securing funding through traditional lenders can be incredibly difficult for those without financial privilege.
Founders typically spend thousands of dollars getting their technology off the ground and ready to sell. Policymakers need to develop a robust starting point for individuals who want a real shot at building a business. The Small Business Administration (SBA) should be the first stop for people to start a business, but a $15,000 to $20,000 loan from the SBA simply isn’t enough, particularly for startups building software or technology products. The federal government needs stronger tools for incentivizing people to innovate and take the road less traveled, rather than just joining a big company..
What are your goals for Habits moving forward?
I'm living my dream. I'm running my own company. I want to continue to scale and do good work for our employees. I want us to continue to grow and help more families connect with a financial advisors. Our big thesis is that financial advice is a part of life, and when they need it, people shouldn’t be reaching out to the financial influencers or people in their inboxes. We offer high-quality financial advice and want to continue to provide the service for families.
All of the information in this profile was accurate at the date and time of publication.
Engine works to ensure that policymakers look for insight from the startup ecosystem when they are considering programs and legislation that affect entrepreneurs. Together, our voice is louder and more effective. Many of our lawmakers do not have first-hand experience with the country's thriving startup ecosystem, so it’s our job to amplify that perspective. To nominate a person, company, or organization to be featured in our #StartupsEverywhere series, email advocacy@engine.is.
