NowHouse

What do they actually do

NowHouse provides an AI-driven post-trade reconciliation service paired with a configurable transaction ledger. It ingests trade files, custodian snapshots, executing-broker reports, corporate-action feeds, and funding notifications; normalizes the data; automatically reconciles transactions under configurable rules; and writes the results to a ledger that back-office teams can use as a single source of truth YC NowHouse.

The product is aimed at trading-ops/back-office teams at broker-dealers and introducing brokers who need intraday portfolio values, minute-level views of positions and cash, and clear tracking of trade and funding progress instead of waiting for end-of-day custodian files. It stores transaction histories with immutable backups and double-entry accounting to produce audit-ready records NowHouse YC.

“Instant settlement” here means keeping each firm’s books current and reconciled intraday so firms can make faster settlement decisions; NowHouse is not replacing clearinghouses or custodians, but reducing reconciliation lag and errors to support shorter cycles like T+1 in practice NowHouse YC.

Who are their target customer(s)

• Trading-ops/back-office teams at broker-dealers: They manually match trades and cash across reports, spend hours fixing breaks, and must wait for end-of-day custodian files before they know if books are correct—slowing decisions and creating errors YC NowHouse.
• Introducing brokers and smaller broker-dealers with limited engineering support: They receive heterogeneous feeds and file formats and rely on fragile scripts or spreadsheets, making reconciliation manual, costly, and error-prone YC NowHouse.
• Custody/settlement and accounting teams: They struggle to resolve mismatches between executing-broker reports and custodian snapshots and lack intraday visibility, increasing settlement fails and cash shortfalls NowHouse.
• Compliance and risk officers at broker-dealers: They need immutable, traceable logs and audit-ready records to satisfy exams and reporting obligations, but current transaction histories are fragmented and hard to prove NowHouse.
• Heads of operations / COOs seeking shorter settlement windows: Reconciliation lag and unresolved breaks create operational risk and potential failed trades; they need a reliable, up-to-date source of truth before changing settlement cycles YC NowHouse.

How would they acquire their first 10, 50, and 100 customers

• First 10: Run paid, high-touch pilots with trading-ops teams at broker-dealers and introducing brokers; map files, configure rules, and deliver an auditable intraday ledger, then convert pilots to contracts and secure case studies and references YC NowHouse.
• First 50: Scale the pilot playbook via targeted outbound and account-based sales into similar firms, leveraging early reference customers; launch partnerships with clearing firms, custodians, and broker-dealer tech vendors for warm introductions and co-selling YC NowHouse.
• First 100: Productize onboarding (templated mappings, prebuilt connectors) for smaller brokers while deepening channel partnerships to win larger accounts; complete compliance certifications (e.g., SOC 2), publish detailed case studies, and offer referral incentives for ops champions NowHouse.

What is the rough total addressable market

Top-down context:

The reconciliation software market was reported at roughly $2.0B in 2024, placing NowHouse in an established, billion‑dollar category rather than a new market Fortune Business Insights.

Bottom-up calculation:

There are about 3,378 FINRA‑registered broker‑dealer firms in the U.S.; at a $50,000 average ACV, that implies ~$169M/year, and at $250,000 ACV, ~$845M/year. A low‑end benchmark (one $35/entity/month seat per firm) would be only ~$1.4M/year, illustrating the floor for commodity pricing FINRA Artiffex.

Assumptions:

• ACV ranges ($50k–$250k) are modeling assumptions for a reconciler + ledger deployment and not NowHouse’s stated pricing.
• The addressable base focuses on all FINRA-registered broker-dealers (excludes banks/custodians and non-U.S. expansion).
• Each firm is modeled as one contract; per-account or sub-entity pricing would increase totals.

Who are some of their notable competitors

• SmartStream: Long-established TLM reconciliation software used by banks and custodians; offers enterprise reconciliation engines and workflows across cash, securities, and corporate actions SmartStream.
• Broadridge: Large post-trade vendor with BRx Match for reconciliation/matching and broader trade processing/exception management; competes on scale and end-to-end workflows Product Press.
• FIS: Enterprise reconciliation products for brokerages and cleared derivatives (e.g., CD Reconciliation Manager), often delivered as managed/outsourced solutions FIS.
• DTCC / Omgeo (ITP): Industry utility for trade confirmation, matching, and institutional trade processing; central matching services drive straight-through processing across markets DTCC ITP.
• Arcesium: Cloud-native post-trade and reconciliation platform with managed services and ledger-like products (e.g., UBOR), targeting asset managers and prime brokers Arcesium.