WEST JORDAN, Utah, Aug. 17, 2021 (GLOBE NEWSWIRE) -- To help scale its business and continue to execute on its mission to close the retirement savings gap for SMB employees, 401GO has successfully closed on a $2M seed round from Impression Ventures, Signal Peak Ventures, and Stout Street capital. The company’s software platform enables small businesses to offer 401k plans to their employees in just minutes, helping them be better prepared for retirement.
401GO was founded to provide greater access to work-sponsored retirement plans for the 50+ million working Americans that don’t have access to one. Most of these workers are employed by small businesses that have avoided 401k plans due to the cost and complexity of establishing and administering a plan. 401GO has built a comprehensive solution enabling small businesses to set up a 401k plan in just minutes. Additionally, ongoing administration is automated with payroll integrations while compliance, government filings, notifications and all other responsibilities are handled by 401GO.
Strong organic demand for a simple and affordable 401k solution, coupled with increased regulations by a growing number of states requiring small businesses to offer employees retirement plans, has led to tremendous growth for 401GO. “We have had incredible growth this past year, and this round of funding will help us continue to accelerate that growth,” says CEO and Co-Founder of 401GO, Daniel Beck. “Knowing that all of our hard work is making saving for retirement easier for Americans who have struggled or haven’t had access to a 401k in the past is a big part of what motivates us all.”
Impression Ventures, with its focus on fintech, led the round and will be taking a board seat. “We were excited to see that, beyond providing a solution for small businesses wanting a retirement benefit, 401GO is using its technology to improve the outcomes for workers that are often ignored or underserved by traditional financial service providers,” says Christian Lassonde, managing partner at Impression Ventures. “Many of the employees 401GO reaches wouldn’t have access to retirement savings if they didn’t have the 401GO platform through their employer.”
This funding round will help 401GO further enhance its platform and allow for new and seamless integrations with other small business services providers. Critically, this funding will accelerate 401GO’s financial advisors partner program. Within this program, 401GO partners with financial advisors and enables them to provide 401k services to their clients in a personalized and highly customizable solution. 401GO technology handles all the extreme complexity of 401k management while advisors can focus on what they do best, providing advice and financial planning for their clients.
401GO’s platform is enabling a broader under-served segment access to a 401k platform for their daily needs. For example, 401GO’s client, BlackHawk Express, wanted a 401k for their trucking company but the other providers they considered made everything too complex for their small team. BlackHawk’s management was thrilled when over half of their employees immediately enrolled on 401GO’s platform, showing that this is a benefit that the majority of their employees were excited to be receiving. “I was impressed with how nice and knowledgeable 401GO was, they didn't seem like a typical financial firm. Having used 401GO for a while, my favorite part is its ease of usage,” says Niasha Hawkins, owner of BlackHawk Express.
401GO provides a comprehensive 401k solution for small businesses of all sizes; from a single to thousands of employees. 401GO’s complete solution saves employers and employees money, time, and hassle, giving employers the benefits employees want and in turn allows them the opportunity to save for retirement. For more information visit https://401go.com/