Retirement plan provider 401GO today announced its completion of a $12 million Series A funding round.
According to an announcement, 401GO will use the funding towards new capabilities in its embedded financial wellness platform, as well as setting a roadmap to launch new products like health savings accounts (HSAs) and emergency savings accounts (ESAs), over the next 12 to 24 months.
The fintech company also says it plans to grow its headcount to employ more than 110 people in the next two years, adding positions in all areas of the business, but with a particular focus on software development and sales.
“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,” said Daniel Beck, Co-Founder and CEO of 401GO. “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.”
Founded in 2019, 401GO serves more than 2,500 businesses, totaling more than 30,000 active users. In November 2023, 401GO launched GO-IRA, an individual retirement account (IRA) offering within the 401GO platform.
While led by Next Frontier Capital, additional investors include Rally Ventures, who joined existing investors Impression Ventures, and Stout Street Capital. As a result of the new investment, Richard Harjes from Next Frontier Capital and Tom Peterson from Rally Ventures will be joining the 401GO Board of Directors.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.