Tech Agency That Helps Advisors Handle 401(ok)s Will get $80M Infusion

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An organization that helps monetary advisors handle the property that shoppers maintain of their 401(ok) accounts has secured $80 million in new funding and introduced a brand new identify—Pontera.

The corporate, beforehand often called FeeX, gives a platform that securely bridges the hole between the advisor and the shopper’s 401(ok) account, in keeping with an organization spokesman. Advisors can use this platform to handle held-away property as a part of the shopper’s general portfolio. 

“Previous to Pontera, advisors who wished to offer this assist had restricted choices that always got here with safety or compliance dangers,” says CEO Yoav Zurel.


Photograph Illustration by Employees; Pictures by Maya Rado

Pontera says it serves 1000’s of economic advisors throughout a number of sorts of advisory practices. It lists shoppers together with Carson Group, Precedence Monetary Group, Dynamic Advisor Options, and CoastalOne.

Whereas there may be a number of advantages to managing shoppers’ property on a coordinated foundation, many advisors draw back from the held-away 401(ok) area for causes that embrace an absence of choices to advise on these property securely.

Pontera’s expertise gives an choice to monetary advisors who, up to now, might have manually collected shopper statements and supplied rebalancing directions over e mail or Zoom. Generally advisors saved their shoppers’ usernames and passwords in an effort to place trades on their behalf, which left them susceptible to further regulatory oversight and cybersecurity threat, in keeping with the corporate.

“There are super advantages to advisor administration of held-away accounts, together with 401(ok)s,” Pontera co-founder and CEO Yoav Zurel, mentioned in a press launch Wednesday. “Previous to Pontera, advisors who wished to offer this assist had restricted choices that always got here with safety or compliance dangers,” he added.

The identify change, introduced Wednesday, underscores the corporate’s development focus. “Pont” is Latin for bridge and the corporate says it goals to be a “bridge to a greater retirement.”

The $80 million was raised throughout three latest funding rounds led by Lightspeed Enterprise Companions, together with The Founders Kitchen, Hanaco Ventures, Hyperwise Ventures, Blumberg Capital, and distinguished particular person traders, in keeping with the press launch.

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