Guideline, a 401(k) solution for small businesses, has bagged $80m in a new funding round, which was co-led by Generation Investment Management and Greyhound Capital.
Previous Guideline backers Tiger Global Management, Felicis Ventures, Propel Venture Partners, Lerer Hippeau, Xfund, and BoxGroup also contributed to the round.
Guideline is an affordable 401(k) service for small businesses. Clients are supported to find a plan that fits their needs and once that is done, Guideline will connect with the clients payroll provider in order to automate contributions. Guideline will also handle the employment onboarding, with each user able to decide on contribution rates, investment choices and updates.
Through the platform, clients also benefit from compliance testing, recordkeeping, investment management, custodial services, fiduciary services and government filings.
In a blog post announcing the funding, Guideline founder and CEO Kevin Busque said, “Less than five years ago, after coming up empty in an attempt to find a 401(k) that prioritized participant savings in a way that didn’t require a financial education to understand, my co-founders and I set out to create a retirement Americans can look forward to.
“Fast forward to today and more than 13,000 small businesses trust us to manage more than $2.5 billion in retirement assets. In 2019, we ranked 7th overall in terms of new plans added for the year.”
With the fresh investment, the company is looking to expand its partner ecosystem, integrate more service providers and offer more resources to participants.
Earlier in the year, cyber insurance platform Coalition closed a $90m equity investment from a batch of investors, including Greyhound Capital. The InsurTech raised the capital to support its rapid growth and global expansion.
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