Today marks a significant milestone for Backer, a FinTech aimed at 529 Savings Plans, as it announces a successful $9.5m Series A financing round.
This pivotal moment is further amplified by its acquisition of Saving For College, a leading 529-related media platform and an essential resource for education savings used annually by millions of American families.
Jordan Lee, the visionary founder and CEO of Backer, shared his insights, “From day one, our mission has been to use technology to help the 529 industry reach a younger generation of parents. As we enter a new era of AI-powered tech, we see an exciting opportunity to combine the industry’s highest-traffic web destination with the industry’s top product team to modernise the way American families discover, enroll in, and engage with 529 plans.”
529 plans have been a robust college savings tool for years, amassing over $450bn in assets across 16 million accounts. With recent Congressional expansions, these plans now cover diverse educational expenses, including K-12 tuition, apprenticeship programs, and student loan debt. Notably, they now allow transferring unused 529 savings to a Roth IRA. Since 1999, Saving For College has been the go-to resource for millions navigating the complex 529 plan landscape and making informed decisions for their families.
Backer has distinguished itself with innovative strides in the 529 sector. Launched in 2017, its consumer savings app has empowered over 200,000 parents and children to save an estimated $250m for education, with 40% of these savings contributed by family and friends. Its high-conversion enrollment process, consumer-friendly gifting platform, and pioneering mobile app have solidified Backer’s role as a crucial technology ally for numerous 529 programs nationwide.
Reflecting on the acquisition, Lee said, “For decades, Saving For College has been an indispensable resource for American families and the many finance professionals working at the state level to grow 529 adoption. We are honored to partner with the domain experts at Saving For College to ensure that 529s will continue to meet the needs of generations to come.”
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