In this week’s corporate roundup, Capitalize raises $19 million in a Series B funding round, Empower announces a new partnership with Hard Rock Stadium and the Miami Dolphins, ShareBuilder 401k offers free 401(k) account setup to small and medium-sized businesses (SMBs), and The Standard hires a regional vice president for its Retirement Plans division.
Capitalize Closes $19M in Funding
Capitalize announced on Thursday the close of a $19 million Series B funding round led by RRE Ventures. The round included participation from existing Capitalize investors including Canapi Ventures and Bling Capital, and new investors including Industry Ventures.
Since launching in 2020, Capitalize has expanded its platform to digitally locate and transfer legacy retirement accounts, and is now processing several billion dollars of rollover volume annually. Both rollover volume on the Capitalize platform and Capitalize’s revenue have grown by approximately six times in the last 18 months.
Capitalize credits its Enterprise business for the recent growth. The platform allows leading financial institutions to embed Capitalize’s rollover technology into their onboarding and funding flows, helping their customers find and transfer legacy employer-sponsored retirement accounts such as 401(k)s into a new account of their choice. Capitalize now offers a suite of enterprise-grade APIs, led by the recent launch of its Embedded Rollover API.
“We’re thrilled to be partnering with RRE for this latest funding round, a firm we’ve long admired for their mission-driven approach and deep expertise within financial services and fintech,” said Gaurav Sharma, co-founder and CEO of Capitalize. “Together we’re excited to keep modernizing the antiquated rollover process so that Americans can better move and manage their money, and our partners can serve their users more efficiently.”
Capitalize will use the new capital to accelerate technology investment in its core rollover platform and expand to serve both partners and consumers with additional features and transfer types. The funding will also be used to support ongoing growth in new and existing Enterprise partners, and serve additional segments of the market, including financial advisors and recordkeepers.
Empower Partners with Hard Rock Stadium, Miami Dolphins
Empower is announcing the kickoff of a new partnership with Hard Rock Stadium and the Miami Dolphins. The recordkeeper will be the entitlement partner of Hard Rock Stadium’s Club and Suite Level.
The new agreement will include in-stadium branding at Miami Dolphins games and on social media channels. As the Official Retirement Services Partner of the Miami Dolphins and Hard Rock Stadium, Empower will also sponsor the Miami Open presented by Itaú, a professional tennis tournament, which is held at the stadium each spring.
The newly established partnership also includes Empower’s support of the Dolphins Cancer Challenge (DCC) initiative, which raises funds for innovative cancer research and is the NFL’s largest fundraising event.
“The Miami Dolphins and Hard Rock Stadium are the leading provider of sports and entertainment in South Florida and beyond,” said Empower president and CEO Edmund F. Murphy III. “Empower is very pleased to align its brand with an organization that has a legacy of teamwork, dedication, and commitment to excellence. Through this new partnership, we will have the opportunity to deliver our value proposition to a broader NFL audience and new audiences.”
“We are proud to partner with organizations that share our vision of being best in class, customer centric, and driven for success, and Empower certainly embodies that,” said Miami Dolphins and Hard Rock Stadium Vice Chairman, President, and CEO Tom Garfinkel.
“Empower will not only provide brand recognition through their entitlement of our Club and Suite Level, but even more importantly, their innovative retirement service offerings will give our staff and fans the resources they need to financially prepare for the future. We are looking forward to working together with Empower to better serve our organization and the South Florida community for years to come.”
Murphy explained that as Empower expands its focus to help more individuals and families better understand investing and their holistic financial needs, visibility in the South Florida market is important due to the demographic trends in the region and the concentration of Americans who relocate south in their post-working years.
Partnering with the Dolphins aligns with the organization’s theme of “Empowering What’s Next,” which is based on the idea that success in any facet of one’s life – including financial planning, preparing for retirement, and competitive athletic training – are all accomplished with forward thinking, goal setting, and excellent execution, Empower adds.
“As a company, our mission is to help people understand the value of planning for what’s ahead, for what’s next in their lives,” said Jenks. “We believe our partnership with the Dolphins can help highlight the idea that anyone can lead the life they want with a focus on the future.”
ShareBuilder 401k, a provider of all-ETF 401(k) plans for small businesses and medium-sized companies, announced a new offer aimed at helping businesses start their first 401(k) to meet the upcoming Safe Harbor deadline.
From August 13 to 20, businesses with employees establishing a new 401(k) plan will receive a free set-up from Sharebuilder 401k. For those signing up between August 21 and September 3, the company will offer a 50% discount on the set-up price.
Safe Harbor 401(k) plans offer benefits for business owners and their employees, including helping save for retirement, tax savings for those contributing, as well as an assist in attracting and retaining top talent. According to the firm, the Safe Harbor 401(k) satisfies IRS plan testing requirements and helps employees and owners maximize their contributions without restrictions up to the 401(k) limits.
To start a Safe Harbor 401(k) plan, it must be established by October 1. Most providers have a deadline well in advance to ensure a company’s plan is ready to go on time and not delayed until January 1. By taking advantage of ShareBuilder 401k’s offer, businesses can establish a low-cost, full-featured plan that simplifies and meets testing compliance while providing valuable retirement benefits to employees.
“Many small businesses are unaware of how affordable a 401(k) plan is, even if you have just an employee or two,” said Stuart Robertson, CEO of ShareBuilder 401k. “Our goal is to make it as easy and affordable as possible for any size business to offer themselves and their employees a retirement plan. By providing free and discounted set-up, we hope to remove any perceived cost barriers and encourage more employers to take advantage of the benefits of a 401(k) plan.”
The Standard Names Retirement Plans RVP
The Standard welcomes Daniel Kretz as a new regional vice president in Retirement Plans. In this role, he will collaborate with advisors, plan sponsors and third-party administrators (TPAs) in Maryland and Washington, D.C.
Kretz has 21 years of experience in the retirement plan and financial services industry, with previous roles in sales and business development as senior benefit plan consultant, director and regional vice president.
Kretz graduated from Fordham University with a bachelor’s degree in business administration and holds FINRA Series 6, Series 7, Series 63 and Series 65 licenses. He also holds a Securities Industry Essentials® designation.
“Dan is a proven sales leader with deep relationships in his territory,” said Derek Fuller, divisional vice president of Retirement Plan Sales at The Standard. “I’m excited to add a sales professional of Dan’s caliber to our team and I’m confident he will continue to be an asset to his partners.”
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