401GO, a leading FinTech company dedicated to modernising retirement planning, announced today that it has successfully secured a $12m Series A funding round.
The investment was led by Next Frontier Capital with additional contributions from Rally Ventures, and supported by existing investors Impression Ventures and Stout Street Capital.
This fresh capital will be used to expand 401GO’s suite of products, which aims to bring the future of retirement planning to today’s workforce. The company’s cutting-edge technology combined with personalised advisory services allows them to offer unique solutions such as 401(k) and IRA platforms, and soon, Health Savings Accounts (HSAs) and Emergency Savings Accounts (ESAs).
401GO plans to use the newly acquired funds to bolster its current offerings and accelerate the introduction of new products over the next 12 to 24 months. Moreover, the investment will enable the company to significantly increase its workforce, with plans to more than double its headcount to exceed 110 employees, focusing on roles in software development and sales.
Since its inception in 2019, 401GO has demonstrated robust growth, achieving an average of 250% year-over-year revenue increase over the last three years. Currently, the company supports over 2,500 businesses and boasts more than 30,000 active users. A noteworthy addition to their platform in November 2023 was the GO-IRA, enhancing the portability of retirement savings across different employers.
401GO CEO Daniel Beck said, “This new funding underscores the confidence our valued investors have in 401GO’s strategic vision and execution, as well as its dedication to reshaping the retirement savings industry through a combination of cutting-edge technology and personalized service.
“Building a modern platform from the ground up that would enable businesses of any size to offer a retirement plan has been a challenging and arduous task. We didn’t cut corners or dress up old legacy tech, which takes more time and patience. Fortunately, we’ve aligned with investors that appreciate our unique approach and sustainable growth model and with these funds, we’ll be able to scale our already strong growth.”
Next Frontier Capital Co-Founder and General Partner Richard Harjes said, “We have followed 401GO for a couple years now, and are excited about the efficient way they are working to serve the millions of Americans working in small to mid-sized businesses with historically low access to employer-based retirement benefits. 401GO has architected an innovative technical solution with great customer support and quick on-boarding, while retaining 401k plan sophistication and the flexibility to work with independent financial advisors offering rich investment options.”
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