Penelope, a new cloud-based retirement savings platform and 401k subscription model for small businesses that launched in January, announced today it has successfully raised $2.1 million in pre-seed fundraising led by Slauson & Co.
Additional investors include Amplify LA, Black Jays and executives from Wells Fargo, Citigroup and US Bank. The funding will be used to create a self-service retirement platform for small and micro businesses, expand Penelope’s team and accelerate customer onboarding.
In a statement announcing the funding, New York-based Penelope said the company has seen tremendous customer growth by targeting a market it says has been often overlooked: minorities, family-owned businesses and solo-preneurs. By shaping its products to be inclusive and accessible, the company looks to empower small and micro businesses to structure manageable retirement programs that best serve their employees.
“Saving for retirement is an essential tool for building wealth and financial equality. For many small business owners, the jargon, paperwork and time required makes retirement plans out of reach,” said Austin Clements, Managing Partner at Slauson & Co. “Penelope fundamentally changes the way small business owners and employees invest in themselves, their families and their communities.”
Through a low-cost subscription model, Penelope’s technology platform automates employee investing, streamlines cost and paperwork, provides practical savings tools for employees, and offers the choice of Pooled Employer Plans (PEP), traditional 401ks and Solo 401ks. Built specifically for micro and small businesses, Penelope eliminates the hidden fees and complexities to help employers easily set up the right plan, reducing fiduciary liability and administrative burden. With Penelope, small businesses can more easily adhere to state regulations requiring companies with more than five employees to offer qualified retirement plans.
“Our mission is to make the American dream of generational wealth building available to small businesses and startups by creating access to affordable 401k models and enabling financial inclusion across all socioeconomic levels,” said Jean Smart, CEO and Founder of Penelope. “Historically, their inability to provide a channel for long term financial security for employees through a 401k plan has made smaller businesses vulnerable to losing talent. With Penelope, this legacy obstacle is no longer a concern.”
Ted Benna, widely known as the “father of the 401k” is an advisor to Penelope. “I’ve helped a lot of small businesses in my lifetime, as well as running my own business, and for many of them, the idea of offering a 401k was out of reach, expensive and confusing, filled with jargon and too time consuming,” Benna said. “Penelope provides plans that are easier to understand and economically make sense for small businesses and startups.”
SEE ALSO:
• New Climate-Focused 401k Targets Small Businesses
• How to Successfully Scale a Small Business 401k Solution
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
