Why We Invested in OLarry
AI is the most transformative technology of our time, and there is clear consensus that its impact will be felt across industries. A great example is tax planning and preparation, where large amounts of structured data have historically been entered and analyzed manually. Since AI is exceptionally good at automating this type of work – and with a potential CPA crisis looming as 75% of those at the partner level are expected to retire in the next 10-15 years – there is a greenfield opportunity for AI-powered tax firms to meet this moment.
Our recent investment in OLarry, a de novo tax firm applying a roll-up strategy to accelerate its growth, is addressing a number of critical needs at exactly the right time. Currently, the manual burden for tax planning and preparation is high. CPAs spend 25% of their time on administrative tasks; it can take six to eight hours of work to produce a 1040 for a high-net-worth individual. OLarry is bringing automation to the tax process by training its proprietary AI models to automate document requests, classify and extract data, and enable rapid research. In doing so, the company is freeing up its CPAs and their staff to focus on tax strategies and planning for clients, rather than being mired in document preparation.
OLarry’s advisory services are designed to meet the needs of a growing demographic. The company serves high-net-worth individuals and businesses whose tax situations are too complicated for DIY tax software but don’t meet the threshold for an ultra-high-net-worth, hourly tax advisory service.
There is increasing demand for personalized tax advice that serves the 5.5 million high-net-worth individuals in the U.S., and OLarry is well-positioned to build a brand for that market.
When we met with Eric and the founding team, we were intrigued by the company’s thoughtful business model. Rather than billing clients at an hourly rate, OLarry is utilizing an all-inclusive annual fee that encompasses year-round tax advice. While this may not seem like much of a difference, it matters in practice. High-net-worth clients benefit the most from proactive planning, which needs to happen throughout the year, not just during tax season. Building in access to CPAs when they have the time and space to think creatively about their clients’ needs will result in a better experience for everyone.
We are proud to support Eric, Becky, Corey and the entire team at OLarry as they scale the business and bring value to clients through proactive tax strategies. We’re looking forward to seeing where they go next as they create a new brand for premium tax advisory services, powered by AI.
