Fintech firm Pontera has raised $60 million in a funding round led by ICONIQ Growth, bringing its total funding to $160 million, according to an announcement.
This investment highlights Pontera’s commitment to improving retirement account management for the 85 million Americans with workplace retirement plans, a crucial aspect of the U.S. retirement crisis, the company said.
Since its last fundraising in February 2022, Pontera said its revenue has more than quadrupled. The latest funding round includes new investor ICONIQ Growth and returning investors such as Blumberg Capital and Lightspeed Venture Partners.
Yoonkee Sull, General Partner at ICONIQ Growth, commended Pontera for its innovative solution that allows financial advisors to effectively manage workplace retirement assets.
Pontera’s platform addresses the operational challenges faced by financial advisors in managing 401(k), 403(b), and other retirement plan assets, especially when these are held at different financial institutions.
The platform enables advisors to securely and compliantly manage these assets, offering a unified view across various institutions. This approach improves transparency and retirement outcomes for clients.
Clients like Jeremy Abfalter have expressed satisfaction with Pontera’s platform, noting the peace of mind and financial security it brings. Before using Pontera, he felt uncomfortable managing his 401(k) plan options alone. Now, with professional assistance, he enjoys stress-free retirement planning.
The platform’s capabilities are particularly significant in light of the U.S. government’s efforts to enhance retirement security, as seen in the SECURE 2.0 Act and the proposed Retirement Security Rule. Pontera’s solution helps minimize suboptimal rollovers and keeps assets within 401(k) plans.
Pontera’s CEO, Yoav Zurel, views the funding as an investment in the future retirement security of U.S. workers.
The company’s collaboration with Dynasty Financial Partners and new integrations with wealth management platforms like Addepar and Envestnet demonstrate its progress and contribution to addressing the retirement crisis in the U.S.
