401GO, which helps small businesses implement 401k plans for their employees, has bagged $2m in its Seed round.
The capital was supplied by Impression Ventures, Signal Peak Ventures and Stout Street Capital.
With the equity infusion, the FinTech company hopes to deepen its platform’s capabilities and support new integrations with other service providers.
Additionally, capital will be used to deepen its partner programme. The programme sees 401GO collaborate with financial advisors and enables them to offer 401k services to their clients in a personalised and customisable manner.
401GO was created to offer improved access to work-sponsored retirement plans for workers in the US. It claims that more than 50 million Americans don’t have access to a plan, and most of these workers are at small businesses that avoid 401ks due to the complexity and cost of offering them.
To respond to this issue, 401GO designed a comprehensive solution that enables small businesses to create a 401k plan within minutes. Implemented plans will boast ongoing administration through automated payroll, and 401GO will handle the compliance, government filings notifications and other responsibilities.
401GO CEO and co-founder Daniel Beck said, “We have had incredible growth this past year, and this round of funding will help us continue to accelerate that growth.
“Knowing that all of our hard work is making saving for retirement easier for Americans who have struggled or haven’t had access to a 401k in the past is a big part of what motivates us all.”
Commenting on the deal, Impression Ventures managing partner Christian Lassonde said, “We were excited to see that, beyond providing a solution for small businesses wanting a retirement benefit, 401GO is using its technology to improve the outcomes for workers that are often ignored or underserved by traditional financial service providers. Many of the employees 401GO reaches wouldn’t have access to retirement savings if they didn’t have the 401GO platform through their employer.”
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