401GO, a Sandy, UT-based retirement plan provider for employers, raised $12M in Series A funding.
The round was led by Next Frontier Capital. Additional investors included Rally Ventures, Impression Ventures, and Stout Street Capital. Richard Harjes from Next Frontier Capital and Tom Peterson from Rally Ventures will be joining the 401GO Board of Directors.
Led by CEO Daniel Beck, 401GO is a fintech company dedicated to empowering individuals to secure their financial futures with confidence. Its approach combines technological solutions with an advisor-based model to ensure that customers receive the benefits of digital tools alongside the guidance and support of retirement experts. Founded in 2019, 401GO today serves more than 2,500 businesses, totaling more than 30,000 active users. In November 2023, the company launched GO-IRA, an IRA offering that allows for a rollover of 401(k) investments within the platform, improving portability of retirement savings for employees who switch employers.
The company intends to use the funds to accelerate its growth, bolstering its existing 401(k) and IRA platforms, 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.
Commenting on the news, Daniel Beck 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.“
FinSMEs
23/04/2024