Investment Rationale · Western New York Impact Investment Fund
Why the firm invested
WNY Impact Investment Fund reinvested due to Arbol's rapid progress in product development, team recruitment, and higher education market traction.
“Arbol has made tremendous progress since we first invested in summer 2023, developing a great product, hiring talented team members and achieving exciting traction in the higher ed marketplace,” said Tom Quinn, WNY Impact Investment Fund CEO.
Product
Arbol provides a higher ed software platform that streamlines student financial services to boost enrollment, retention, and tuition revenue.
Arbol helps universities improve enrollment, retention, and tuition revenue by streamlining student financial services with a platform that provides students with clarity and confidence, enabling them to navigate their financial journey with ease and success.
Traction
Arbol expanded from two pilot customers in summer 2023 to eight higher education institutions, delivering personalized financial plans to over 4,000 students.
When the Fund first invested in summer 2023, Arbol had two pilot customers and has since expanded to eight colleges and universities of all sizes, including SUNY Buffalo State, SUNY Erie Community College, Keuka University, and UNC East Carolina.
Students using Arbol report a 50% reduction in financial stress and typically take at least one proactive financial action.
Students who use Arbol report a 50% reduction in financial stress and typically take at least one proactive action, such as securing additional aid, applying for a work-study job, or utilizing transportation assistance.
Team
Arbol was co-founded by David Gonzalez and Favio Osorio based on their experience as first-generation Latino college students.
Arbol is led by co-founders David Gonzalez and Favio Osorio ( link), who based the company on their experience as first-generation Latino college students.
Investment context
WNY Impact Investment Fund made a $250,000 investment in Arbol to lead the company's seed round.
The Western New York Impact Investment Fund is pleased to announce a $250,000 investment into Arbol, a higher education software company that is embarking on a national expansion.
WNY Impact Investment Fund led Arbol's $850,000 pre-seed round in 2023 with a $100,000 investment.
This is the second time the Fund has invested in Arbol, following a $100,000 check in 2023 ( link) that served as the lead investment into Arbol’s $850,000 pre-seed round.
What founders can learn
- What actually moved the decision: Western New York Impact Investment Fund wrote that WNY Impact Investment Fund reinvested due to Arbol's rapid progress in product development, team recruitment, and higher education market traction.
- The traction evidence that carried weight: Western New York Impact Investment Fund wrote that Arbol expanded from two pilot customers in summer 2023 to eight higher education institutions, delivering personalized financial plans to over 4,000 students.
- How the team was judged: Western New York Impact Investment Fund wrote that Arbol was co-founded by David Gonzalez and Favio Osorio based on their experience as first-generation Latino college students.
Source and provenance
Investment Rationale published by Western New York Impact Investment Fund on wnyimpact.com (first-party source). Read the original
