Today saw another example of a strategic investment in the wealthtech space. Trust & Will, a wealthtech firm that has built a platform to allow people to create estate plans at scale, has received a strategic investment from Erie Strategic Ventures, the venture capital arm of Erie Insurance. According to the press release, it appears that Erie Insurance will also be partnering with Trust & Will to bring affordable estate planning to their insurance customers at scale.
We see this as further evidence of the benefits of a corporate venture capital program. By making an investment in a vendor they are adopting, they are strengthening the vendor, strengthening the vendor relationship, and perhaps helping to influence further development. Additionally, they may be placing a thumb on the proverbial scale when it comes to investment return by bringing 6 million policyholders to the table. We saw something similar when American Express decided to acquire Bodeswell after a successful pilot.