401GO Raises $12M Series A to Fuel Next Phase of Growth
23 Abril 2024 - 12:02PM
Business Wire
Led by Next Frontier Capital, the new capital allows the company
to add new products, increase headcount, and further its mission to
usher in the modern era for retirement planning and investing
401GO, the next-generation retirement plan provider for
employers, advisors and individuals, today announced the successful
completion of its $12 million Series A funding round, led by Next
Frontier Capital. Additional investors include Rally Ventures, who
joined existing investors Impression Ventures, and Stout Street
Capital that participated in the new investment.
The latest capital infusion will fuel the next stage of the
company's growth and advance its mission to enhance retirement
savings through its innovative blend of advanced technological
solutions with a high-touch, advisor-based model. In addition to
bolstering its existing 401(k) and IRA platforms, 401GO will be
enhancing and adding capabilities to its embedded financial
wellness platform, as well as setting a roadmap to launch new
products, such as Health Savings Accounts (HSAs) and Emergency
Savings Accounts (ESAs), over the next 12-24 months.
401GO also plans to more than double its headcount to employ
more than 110 people over the course of the next two years, adding
positions in all areas of the business, but with a particular focus
on software development and sales.
Founded in 2019, 401GO has seen steady growth since its
inception, averaging 250% year-over-year revenue growth over the
last three years. Today the company serves more than 2,500
businesses, totaling more than 30,000 active users. In November
2023, 401GO launched GO-IRA, an IRA offering that allows for a
hassle-free rollover of 401(k) investments within the 401GO
platform, improving portability of retirement savings for employees
who switch employers.
The company’s focus on helping employees who are early in their
career put away their first dollars towards retirement is validated
by data from its platform showing a 51% retirement plan
participation rate amongst the youngest quartile of employees,
which is more than double the industry average from the US Bureau
of Labor Statistics (22%).
Daniel Beck, Co-Founder and CEO of 401GO said: “This new funding
underscores the confidence our valued investors have in 401GO's
strategic vision and execution, as well as its dedication to
reshaping the retirement savings industry through a combination of
cutting-edge technology and personalized service. Building a modern
platform from the ground up that would enable businesses of any
size to offer a retirement plan has been a challenging and arduous
task. We didn’t cut corners or dress up old legacy tech, which
takes more time and patience. Fortunately, we’ve aligned with
investors that appreciate our unique approach and sustainable
growth model and with these funds, we’ll be able to scale our
already strong growth.”
Richard Harjes, Co-Founder and General Partner of Next Frontier
Capital agrees: "We have followed 401GO for a couple years now, and
are excited about the efficient way they are working to serve the
millions of Americans working in small to mid-sized businesses with
historically low access to employer-based retirement benefits.
401GO has architected an innovative technical solution with great
customer support and quick on-boarding, while retaining 401k plan
sophistication and the flexibility to work with independent
financial advisors offering rich investment options. Recent
regulatory changes, including 2022’s Secure 2.0 legislation,
encourage more firms to offer 401k plans and play to 401GO’s
strengths. Next Frontier Capital is proud to support Daniel and the
401GO team in their mission to improve the retirement outlook of
its customers.”
Richard Harjes from Next Frontier Capital and Tom Peterson from
Rally Ventures will be joining the 401GO Board of Directors.
About 401GO
401GO is a leading fintech company dedicated to revolutionizing
the way individuals save for retirement. Through its innovative
blend of cutting-edge technology and personalized human support,
the company is empowering individuals to secure their financial
futures with confidence. With a commitment to empowering
individuals to secure their financial futures, 401GO stands out in
the competitive fintech sector by offering a unique approach that
marries advanced technological solutions with a high-touch,
advisor-based model. This hybrid model ensures that customers
receive the benefits of state-of-the-art digital tools alongside
the guidance and support of seasoned retirement experts.
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