Basic Capital, a 401(k) platform designed to help workers achieve their retirement goals through innovative financing options, has raised $25m in a Series A.
The company raised $25m in the round, which was led by Forerunner and Lux Capital. The investment also saw support from existing backers SV Angel and Box Group, alongside high-profile investors such as Henry Kravis. New participants in this round included HOF Capital and Inspired Capital.
Basic Capital positions itself as the first and only 401(k) provider that enables participants to finance assets while also opening access to alternative investments. Its offering is aimed at modernising retirement savings, a sector it argues has seen little innovation in decades.
The fresh injection of capital will be used to accelerate adoption of its platform among employers, while also expanding the company’s team. Basic Capital intends to scale its services to reach more retirement savers across both its 401(k) and IRA products.
The firm partners with employers to provide retirement plan solutions and extends individual IRA plans to workers, with the goal of helping more Americans finance investments rather than consumption.
Basic Capital CEO Abdul Al-Asaad said, “The engine of 401(k)s has not been significantly upgraded in 40 years. This new investment into Basic Capital, alongside policy changes emerging from Washington, D.C., represents a huge win for American workers as retirement plans get brought into the 21st century.”
Lux Capital co-founder and partner Peter Hebert added, “American innovation has generated extraordinary financial prosperity. But historically, federal regulation has prevented millions of American workers from accessing opportunities to build wealth. The Basic Capital team has developed a novel solution to help everyday Americans finance investment, rather than consumption.”
This marks Basic Capital’s Series A funding, building on earlier backing from investors such as SV Angel and Box Group.
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