Having secured the funding it needs, Capitalize has announced the launch of its solution to help Americans easily locate and roll over their legacy 401(k) accounts.
The Capitalize platform helps users locate former 401(k) accounts, matches them to individual retirement accounts (IRAs) at leading financial institutions and initiates rollovers on their behalf. With more than 15 million 401(k) account-holders changing jobs each year and higher levels of financial insecurity resulting from the COVID-19 pandemic, Capitalize says it helps ensure Americans avoid cashing out or losing track of their retirement savings.
The firm says it accelerated the platform’s launch to help those affected by COVID-19-induced layoffs preserve their retirement savings. The platform also supports employers by helping them lower fees paid to administer their 401(k) plans, reduce exposure to potential Employee Retirement Income Security Act (ERISA) lawsuits, and free up human resources (HR) time otherwise spent communicating with former employees.
Capitalize was started by co-founder and CEO Gaurav Sharma, who began his career in investment banking before transitioning to hedge fund Greenlight Capital. Gaurav is joined by co-founder and Chief Technology Officer (CTO) Chris Phillips, who previously served as CTO of IAC’s Applications group, overseeing technology for a $500 million portfolio of desktop and mobile applications that included Vimeo and Daily Burn.