Northstar, which is enabling employers to offer their staff more financial wellness benefits, has scored $7.3m in its Series A round.
M13 served as the lead investor, with contributions also coming from Foundation Capital and Workday Ventures.
Other backers to the round include Parade Ventures, Ludlow Ventures, Designer Fund, Combine, RRE Ventures, Swell Partners, PeopleTech Partners, and founders and C-level executives from NerdWallet, Plaid, Adobe, Amazon, BrandSafway, SunRun, Yelp, Product Hunt, and Thumbtack.
The Northstar platform gives individuals personalised financial guidance, including a custom financial plan. It also automates advice on how to save money, pay off debt, invest and understand taxes.
Users are also given recommendations on how to leverage compensation and benefits, such as equity, health plans, HAS/FSA and perks.
Northstar was created after the founders Will Peng and Matt Matteson were inspired by their own struggles with personal finance.
Northstar CEO and co-founder Will Peng said, “We love partnering with employers – it’s a natural fit. For generations, employees have gotten paychecks and retirement plans through work, but without guidance to manage their finances and achieve their goals. Employment is the primary source of financial stability and wealth creation, and Northstar is redefining the employee experience.”
M13 closed its sophomore fund on $175m last year, beating its initial target of $150m. The investment vehicle targets seed and Series A rounds of companies building technology solutions for personal finance, health, transportation, housing and food.
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