401GO Raises $12M Series A Funding Led by Next Frontier Capital

Rally Ventures, Impression Ventures and Stout Street Capital contributed to the round, fueling the small plan provider’s growth strategy to add HSAs and emergency savings.

401GO, a provider of 401(k) plans tailored for small enterprises and individuals, announced the conclusion of its Series A funding round worth $12 million. Next Frontier Capital led the investment, with Rally Ventures and existing backers Impression Ventures and Stout Street Capital also contributing to the round.

The recent capital infusion will strengthen 401GO’s current 401(k) and individual retirement account platforms amid expectations of small plan startup growth due to retirement plan state mandates and federal tax incentives and mandates. Additionally, the company plans to enhance its embedded financial wellness platform and has outlined a strategy to introduce new offerings, including health savings accounts and emergency savings accounts within the next 12 to 24 months.

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401GO aims to use the funds to more than double its workforce, seeking to grow over 110 employees within the next two years. The expansion will encompass all departments, with a specific emphasis on bolstering personnel in software development and sales roles, the firm noted.

“This new funding underscores the confidence our valued investors have in 401GO’s strategic vision and execution,” Daniel Beck, co-founder and CEO of 401GO, said in a statement. “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.”

Established in 2019, 401GO currently serves over 2,500 enterprises. In November 2023, the company introduced GO-IRA, an IRA solution facilitating seamless rollovers of 401(k) investments within its platform, enhancing retirement savings portability for people who switch employers.

Data from the firm’s platform reveals a 51% participation rate in retirement plans among the youngest quartile of employees, surpassing the industry norm of 22% reported by the US Bureau of Labor Statistics.

“We have followed 401GO for a couple years now and are excited about the efficient way they are working to serve the millions of Americans working in small to mid-sized businesses,” Richard Harjes, co-founder and general partner of Next Frontier Capital, said in a statement. “401GO has architected an innovative technical solution with great customer support and quick on-boarding, while retaining 401k plan sophistication and the flexibility to work with independent financial advisers.”

Harjes and Tom Peterson from Rally Ventures will join the 401GO’s board of directors.

Advisor360 Names Mike Fanning CEO

Fanning will succeed Richard Napolitano effective May 1.

Mike Fanning

Advisor360 LLC, which provides technology solutions to wealth managers, revealed Tuesday that Mike Fanning, previously head of MassMutual U.S., will take over as CEO from Richard Napolitano when he retires on May 1.

“Rich’s leadership and vision have been fundamental in setting Advisor360 on a course for success as an independent technology company,” Fanning said in a statement. “I look forward to advancing our mission, values and strategic objectives as Advisor360° enters its next chapter of innovation and expansion.”

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In Fanning’s over thirty-year career in wealth management, he has held several leadership positions in technology strategy and enterprise-wide innovation. At MassMutual, where he spent 17 years, he led the company’s domestic insurance business as head of MassMutual U.S. In September 2023, Advisor360 announced Fanning was leaving MassMutual to join Advisor360’s board of directors.

In June 2021, MassMutual and Advisor360° announced a fully consolidated digital platform for financial investment and protection solutions.

“Mike is a pioneer in this industry and uniquely suited to lead us going forward,” Napolitano said in a statement. “No stranger to Advisor360, he was instrumental in developing the business case for the company within MassMutual and has served as our board chairman for the last year. I look forward to advising the company as it continues to evolve and grow under his direction.”

Napolitano assumed the role of CEO at Advisor360 in 2020, overseeing the company’s growth from a spin-out of a financial services firm to an established provider of technology solutions for the wealth management sector, according to the firm. Following his retirement, Napolitano will transition into a strategic advisory role at Advisor360.

Advisor360 currently employs over 700 professionals across the United States, Canada, India and Northern Ireland.

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