Retirement asset transfer startup Capitalize has closed a $12.5m Series A investment round.
Canapi Ventures led the round with participation from Capitalize’s existing investors, including Bling Capital, Greycroft, RRE Ventures and Walkabout Ventures.
Capitalize will use the new cash injection to fuel continued growth, support strategic investment in talent and enable Capitalize to add new services as it helps consumers save for retirement nationwide.
“We’re making it easier for all Americans to save for retirement as they move through their careers,” said Gaurav Sharma, co-founder and CEO of Capitalize.
“Each year, more than $20bn in retirement savings is lost to taxes and penalties due to an inefficient rollover system, with millions of additional retirement accounts left behind when people change jobs. We’re thrilled at the progress we’ve made since our launch, only months ago, and by the trust of our users and partners.
“This Series A financing enables us to reach more consumers, significantly expand our team and offer new services to help our users save for retirement. We couldn’t be more excited to have partners like Canapi on board as we help more Americans get their retirement savings on track.”
Jeffrey Reitman, partner at Canapi Ventures, added, “The retirement savings process has been riddled with inefficiencies and relatively untouched by technology for far too long. Capitalize is solving a critical need for so many Americans and has already made impressive strides doing so.
“Many of our bank LPs offer digital IRA products, and Capitalize’s offering will enhance their customer experience while enabling them to grow AUM. We are excited by the market receptivity to their product, and we’re looking forward to helping the team unlock substantial opportunities for growth.”
Canapi Ventures has previously backed FinTechs like automating data-driven money experience venture MX and construction lender-connecting startup Built Technologies.
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