Studio 1299

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Clarity Score 0 Real-Time Credit Intelligence Two Products. One Proprietary Scoring Engine.
Studio 1299 — Confidential March 2026
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Clarity Finance

Probate takes 16 to 20 months on average. During that time, heirs have no access to the assets they are legally entitled to. Bills accumulate. Opportunities pass. The current inheritance advance market charges 30 to 40 percent — predatory rates for a structurally simple transaction.

Clarity Finance is a marketplace for inheritance advances. Heirs submit documentation. The Clarity Score — our proprietary underwriting engine scored 1 to 100 — assesses the estate's risk profile across domicile, asset type, documentation quality, probate stage, and complication factors. Verified deals are listed on the marketplace. Accredited lenders bid competitively. Rates land at 12 to 20 percent — half what incumbents charge — with 10 to 20 times collateral coverage.

Clarity is currently finalizing a CEO search and bringing on a lead seed investor. The platform is built. The scoring engine is operational. What follows is capital deployment.

$124T Cerulli Associates — projected intergenerational wealth transfer through 2048
3M+ Annual probate cases in the United States

Source: Cerulli Associates, "U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2023." $62T+ from UHNW households representing 2% of U.S. population.

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The Clarity Score

Scoring Dimensions (1–100)
  • 01 — Domicile & Jurisdiction
  • 02 — Asset Type & Verified Value
  • 03 — Personal Credit Overlay
  • 04 — Documentation Quality
  • 05 — Process Stage
  • 06 — Complication & Risk Factors

Scored 1 to 100. Higher scores indicate lower risk and qualify for better rates. Each transaction processed improves the model — the data flywheel compounds with volume. Purpose-built for asset-backed, non-recourse lending.

Two Products, One Engine
  • Clarity AdvancePost-probate
  • Rate Range12–16% p.a.
  • Duration12–24 months
  • Max Advance10% estate value
  • Clarity SecurePre-probate
  • Rate Range15–20% p.a.
  • Duration2–5 years
  • Max Advance5–8% asset value
  • RequirementTri-party consent
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How a Deal Works

Sample: Richardson Estate — Clarity Advance

Margaret Richardson passes away in California, leaving a $3.2M estate — primary residence ($1.8M), investment accounts ($900K), personal property ($500K). Her daughter Sarah is the sole beneficiary. Probate is filed. Estimated timeline: 18 months.

Sarah needs $200,000 to cover estate taxes, maintain the property, and bridge living expenses. The Clarity Score assesses the estate at 78 / 100 — strong asset verification, clean documentation, single beneficiary, favourable jurisdiction.

Clarity Score 78 Strong — Lender Eligible
Estate Value$3,200,000
Advance Amount$200,000
Advance-to-Value6.25%
Collateral Coverage16×
Winning Bid Rate13.5%
Disbursement$40K now, $40K quarterly
How the Lender is Protected

Non-recourse. The estate repays — not the heir personally. If the estate is worth less than expected, the lender's loss is capped at the advance amount. Staged disbursements (20% immediate, 80% quarterly) limit exposure throughout probate.

Escrow-protected. All funds held in third-party escrow. Neither party handles cash directly. Repayment is automatic from estate distribution upon probate close.

Known Risks
Estate value uncertainty — appraisals may differ from final liquidation
Will changes or contests — pre-probate deals carry beneficiary risk
Probate timeline variance — some states take 24+ months
Jurisdictional complexity — probate law varies significantly by state
Medical debt & estate claims — can reduce final distribution
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Clarity Secure: Pre-Probate

Private credit on existing assets — while the estate holder is still alive. Clarity Secure enables heirs to access a portion of their expected inheritance today, backed by verified estate assets. For a wealth advisor, this turns one client into two: the estate holder remains a managed relationship, and the heir becomes an active borrower with structured capital needs.

Money today is worth more than money in 15 years. An heir waiting on a $5M estate has zero access to that capital while the estate holder is living. Clarity Secure unlocks 5–8% of verified asset value now — structured as an annuity with meaningful tax advantages.

Tax Structure

The advance can be structured as a loan against the estate, not a distribution. Interest on monthly payments is deductible. The estate holder gifts the proceeds to the heir via structured annuity — potentially below the annual gift tax exclusion threshold, sheltering the transfer from estate tax. The heir gets capital. The estate gets a deduction. The portfolio stays intact.

5-Year Renewal Requirement

If the estate holder has not passed within 5 years of the advance, the agreement must be re-underwritten and renewed. The Clarity Score is recalculated against current asset values, updated documentation, and any changes in estate structure. This protects lenders from indefinite duration risk and ensures the collateral basis remains sound.

Case Study: Pre-Probate Advance
Clarity Score 71 Good — Pre-Probate Eligible
Estate HolderLiving, age 82
Verified Assets$5,200,000
Advance (6% of assets)$312,000
Rate17.5% p.a.
Disbursement$47K now, $26K quarterly
DurationUp to 5 years (re-up required)
ConsentHeir + Estate Holder + Clarity
Competitive Landscape

Pre-probate inheritance advances are a near-empty field. The few players in market:

  • Inheritance Funding Co.Post-probate only
  • Probate CashPost-probate only
  • Inheritance AdvancedPost-probate only
  • TriMark Legal FundingPost-probate only

No known competitor offers pre-probate advances with institutional scoring infrastructure. Clarity Secure is a category of one.

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People Already Try to Solve This.
The Tools Are Wrong.

Reverse Mortgages

A $1.83B market globally. Homeowners 62+ borrow against home equity via FHA-insured HECMs. Families already use these to access estate value early — but they're the wrong instrument.

Compound interest devastation. After 10 years, fees and interest can exceed $100K. After 20 years, $300K+ on top of the original loan.
Destroys estate value. Full balance due at death. Heirs are forced to sell the home or walk away. Can consume entire equity.
Only for the homeowner. An heir cannot take out a reverse mortgage. Only the estate holder (62+) can — and the fees are punishing.
Heavy fees. Origination up to $6,000. FHA insurance at 1.25%/year on the balance. $30–35/month servicing.
HELOCs on Inherited Property

The obvious idea: take a HELOC against the inherited property. In practice, it doesn't work for the exact scenario where heirs need liquidity most.

Requires clear title. Probate must be COMPLETE and property transferred to the heir's name before any lender will issue a HELOC. This defeats the purpose — the need is during probate.
Tied to heir's credit. The lender underwrites the heir as a borrower — income, DTI, FICO. An heir with bad credit cannot access their own inheritance.
Multiple heirs block it. If siblings co-inherit, all must agree. One holdout blocks everyone.

Neither tool solves the core problem: an heir who needs liquidity during probate, before title transfers, whose creditworthiness is irrelevant to the value of their inheritance.

Sources: FTC Consumer Advice, CFPB, Grand View Research ($1.83B reverse mortgage market, 2023). HELOC data: Bankrate, Experian, Federal Hill Mortgage.

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The Current Industry

Existing Players — All Post-Probate Only
Company Effective APR Notes
Inheritance Funding Co.Opaque (flat fee)Largest player, 20+ years
Probate Advance LLCPredatoryMD AG forced $2.7M restitution
TriMark Legal FundingUndisclosedLawsuit funding side business
Inheritance Advanced10–40% flat feeLead-gen affiliate model
My Inheritance CashDisputedAccused of double-collecting
Probate CashUndisclosedStandard flat-fee model
Consumer Reports Investigation

Effective APRs across the industry range from 36% to 490%, averaging 87%. One in four transactions had triple-digit APRs. The average beneficiary gives up nearly half of what they would have inherited. No probate lender in the study suffered a loss or merely broke even.

Key Reading
  • Consumer Reports "How an Obscure Industry Makes Money Off the Dead" — 36–490% APR findings
  • Center for Public Integrity "The little-known corner of finance pitching heirs on fast cash"
  • Cerulli Associates $124T wealth transfer projection through 2048 — the foundational market data
  • Maryland AG v. Probate Advance LLC $2.7M restitution for exploiting grieving families (2025)
  • Virginia HB 648 (2024) First state to cap inheritance advance APR at 12% — regulatory momentum building
  • Coruzant Technologies "How Emerging Tech Could Reinvent Estate Finance" — no funded players yet
VC Activity in This Space

Zero. No VC-backed company has entered inheritance/estate lending. Every existing player is privately funded, small-to-mid-size, and operating without scoring infrastructure. $52B went into financial services VC in 2025. None of it went here.

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Marketplace First. Then Institutional.

Phase 1: Marketplace. Clarity launches as a two-sided marketplace connecting heirs with accredited lenders. Competitive bidding drives rates down to 12–20% — half the industry standard. Every transaction generates structured data: asset type, jurisdiction, documentation quality, outcome, timeline accuracy.

Phase 2: Institutional lender. Once we have sufficient deal volume and default history, the data positions us to bring on a dedicated institutional lending partner. The Clarity Score becomes the underwriting standard for the asset class — the equivalent of a FICO score for estate liquidity. The marketplace proves the model. The data earns the institutional relationship.

Competitive displacement. Legacy players (Inheritance Funding Co, Probate Cash, Inheritance Advanced) fund their own books at 30–40%. No marketplace. No scoring infrastructure. No institutional capital. Clarity Finance brings institutional discipline to a market that has operated like a pawn shop.

12–20% Clarity Finance rate range vs. 30–40% from legacy incumbents
<2% Target default rate — non-recourse structure bounds investor risk
10–20× Collateral coverage on every advance — estate assets far exceed advance

Clarity Finance is currently finalizing CEO search and lead seed investor. Platform is built. Scoring engine is operational.

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The lending infrastructure behind Clarity
gave us a second idea.

Building the Clarity Score required solving a hard problem: real-time creditworthiness assessment for non-traditional collateral. The engine scores across domicile, asset type, documentation quality, and risk factors — none of which depend on a FICO score.

That same engine applies to another market where traditional credit infrastructure doesn't exist: user acquisition financing for industries that banks won't touch.

One scoring engine. Two structurally underserved markets.
Same data flywheel. Different collateral.

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Railed Financial

Revenue-based financing works. Companies like Clearco ($1.16B raised), Wayflyer ($553M), Pipe ($437M), and Uncapped ($368M) have proven the model for e-commerce and SaaS. Spring does it for CPG inventory. Braavo has deployed $2B+ for mobile apps.

None of them can serve vice industries. Clearco explicitly excludes cannabis, gambling, tobacco, and vaping. Wayflyer restricts firearms, pornography, and nicotine. Pipe depends on Stripe, which blocks high-risk MCCs. Uncapped's capital comes from Fortress and Lloyds — both carry institutional vice clauses. The capital partners won't allow it.

Banks can't do it either. Cannabis is federally Schedule I — banks must file SARs on every transaction. Visa/Mastercard fine acquirers $25K–$100K per MCC violation. Card networks now deploy AI to catch miscoded merchants. The structural barrier is regulatory, not reputational — and it's not going away.

What a Deal Looks Like
Capital Deployed$150,000
Factor Rate1.30×
Total Repayment$195,000
Repayment Method10% of gross revenue
Funding Speed2–5 business days
Credit CheckNone
Personal GuaranteeNone
Underwriting Infrastructure

Plaid integration pulls bank transaction data and verified revenue directly. Ad platform APIs verify channel spend, ROAS, and CPA in real time. Structured as purchase of future receivables — not a loan. No usury risk. No lending licence required.

Sources: Clearco restricted list (clear.co), Wayflyer prohibited products (wayflyer.com), Pipe/Stripe MCC restrictions, Uncapped capital partners (Fortress/Lloyds). FinCEN BSA marijuana guidance (2014). Visa VIRP Tier 1 classification.

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Strategic Relationship: Slushy

We have a strategic relationship with Slushy, a US-domiciled creator economy platform based in Miami, Florida. Founded in 2020, Slushy closed a $10.2M seed round in 2024 — the first venture-backed adult content platform in history. Investors include Mantis VC (The Chainsmokers), Electric Feel Ventures, Jon Oringer (ex-Shutterstock CEO), and Sean Rad (Tinder co-founder).

Slushy currently spends $300,000 per month on user acquisition — paid social, programmatic, influencer, and affiliate. Strong ROAS. Consistent revenue trajectory. Venture-backed. Exactly the borrower profile the Clarity Score is built to evaluate.

Despite proven unit economics and institutional backing, Slushy cannot access conventional UA financing. Every revenue-based lender they've approached — Clearco, Wayflyer, Uncapped — carries vice clauses that prohibit adult entertainment exposure. The business is funded, profitable, and growing. The capital is artificially constrained by policy, not performance.

Slushy at a Glance
  • HQMiami, FL (US-domiciled)
  • Founded2020
  • Seed Round$10.2M (June 2024)
  • Monthly UA Spend$300,000
  • SectorCreator economy / adult content
  • Team Size~20 employees
Pilot Validation

The pilot facility validates the underwriting model with live capital at scale. Known counterparty. Verified revenue. Existing relationship. The $500K pilot builds the track record required for a $5M to $10M institutional raise — diversifying across borrowers and verticals.

Source: Slushy $10.2M seed (PR Newswire, June 2024). First venture-backed adult content platform (VentureBeat). Pilot phase carries concentration risk, mitigated at scale via borrower diversification.

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Pilot Economics

$500K Pilot Facility — Annual Economics
Deployed Capital$500,000
Fee per 90-Day Cycle8% fixed
Cycles per Year4
Gross Fee Revenue$160,000
Less Defaults (2%)($40,000)
Less Preferred Return (10%)($50,000)
Net Distributable Profit$70,000
Railed (66.7%)$46,700
Partner (33.3%)$23,300
Partner Preferred Return$50,000
Partner Total Annual Return$73,300
Partner Return on Capital14.7%
Structure & Terms
  • StructureLP / LLC
  • GP / ManagerRailed Financial
  • Preferred Return10% p.a.
  • Profit Split66.7 / 33.3
  • Term12 months, auto-renews
  • Exit Notice90 days
  • LiquidityQuarterly cycles
Scale Path
  • Pilot$500K
  • Series A Facility$5M
  • Institutional$10M

Structured as purchase of future receivables — not a loan. Removes usury and lending licence risk. Successful pilot unlocks institutional raise.

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Why Railed. Why Now.

$103B Cannabis 2025 Global market — projected $428B by 2032. 24 states + DC recreational. Trump ordered DEA rescheduling to Schedule III.
$131B iGaming 2026 Global online gambling — growing 17.8% CAGR. US sports betting alone: $37B in 2025, $49B by 2029.
$74B Adult / Creator Online adult entertainment — growing 9% CAGR. OnlyFans alone: $6.63B gross revenue, $8B valuation, 4.6M creators.
$87B Alcohol E-Commerce DTC alcohol projected to $74B by 2034 (31.8% CAGR). CBD market: $17B and growing. Combined vice TAM: $350B+.
14.7%

Net partner ROC on $500K pilot. LP structure. 10% preferred return. Quarterly distributions. Path to $5–10M facility.

$350B+ in annual revenue. Zero institutional lending infrastructure. Cannabis brands spend 75% less on marketing than CPG — not by choice, by constraint. The capital vacuum is structural. The window is now.

Sources: Fortune Business Insights (cannabis), GII Research (iGaming), SkyQuest (adult entertainment), Globe Newswire (alcohol e-commerce), OFStats (OnlyFans), MG Magazine (cannabis marketing spend).

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Studio 1299

Two Products. One Engine.
An Allocation Opportunity at the Frontier of Alternative Finance.

All figures are indicative and based on current deal flow and term sheet economics. This document is confidential and prepared exclusively for prospective partners.

Direct Enquiries hello@studio1299.com
Railed Financial tryrailed.com
Clarity Finance iwantclarity.co
Studio 1299 — Confidential. Not for distribution. 14 / 14