New York City-based fintech Pontera has successfully secured $60 million in a recent funding round, spearheaded by the notable participation of Iconiq Growth as a new investor. This influx of funds follows Pontera’s previous funding round in February 2022, where it raised an impressive $80 million across three rounds. With Iconiq Growth leading this latest investment, Pontera’s total funding to date reaches an impressive $160 million and creates the buzz in the US fintech funding news.
Pontera, formerly known as FeeX and established in 2012, specializes in providing wealth management services tailored for 401(k) participants. The fintech addresses what it terms the “retirement crisis” in the US, highlighting the widespread neglect of workplace retirement accounts affecting around 85 million Americans. The platform enables financial advisors to analyze, rebalance, and report on various workplace retirement account assets, including 401(k)s and 403(b)s. It boasts compatibility with a vast majority of retirement plans and seamless integration with existing portfolio management tools.
Yoonkee Sull, general partner at Iconiq Growth, says: “Pontera is addressing a growing market need with a solution that benefits the entire retirement ecosystem through a proven approach for financial advisors to compliantly and more effectively manage workplace retirement assets.”
The platform offers a proven approach for financial advisors to efficiently manage workplace retirement assets while ensuring compliance. According to sources, this funding round brings Pontera’s valuation to over $550 million. The company plans to utilize the fresh capital to expand its workforce in Israel, where more than 65% of its employees are based, and to fuel further investment in product development. Insiders suggest that the company’s focus on hiring indicates a strategic push toward enhancing its capabilities and market presence.
To know more about other trending usecases in the US financial services industry, like Generative AI, Open Banking, Buy Now Pay Later (BNPL), explore our other insights.
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