SAN FRANCISCO — Guideline, a startup that’s hoping to revolutionize online retirement planning, has completed a $7 million Series A round of financing. Propel Venture Partners led the investment round, with participation by existing investors, including NEA and Lerer Hippeau Ventures.
“The employer based retirement plans market is immense, having grown from $4.4 trillion in 2014 to over $6 trillion by 2016, and participants in small business 401(k) plans are paying exorbitant fees on their assets, ranging between 0.68% and 2.66%,” said Ryan Gilbert, partner at Propel Venture Partners. “Guideline is changing the ‘high-fee low-growth’ game by focusing on 401(k) growth, without collecting fees based on the size of a participant’s retirement portfolio. We’re extremely excited about the way Guideline is rethinking and rebuilding small business retirement plans.”
Guideline is the first and only 100% automatically managed 401(k) offering that does not charge or benefit from asset-based investment fees. Guideline’s full stack technology handles all plan administration, payroll automation, payroll integration, recordkeeping, investment management, and compliance. Guideline helps companies provide a successful retirement for their employees through a hassle-free experience.
“Guideline reimagines retirement planning,” said Guideline CEO Kevin Busque, co-founder of the successful online and mobile marketplace TaskRabbit. “Our structure, user experience, and pricing model reflect the needs of employers and employees in today’s economy. We believe it is time to give employers the sleek, efficient, intuitive 401(k) plan their employees deserve. That’s Guideline.”
The Series A financing will allow Guideline to continue its rapid growth. In 2016, the company added financial and technology professionals to its growing staff and successfully onboarded numerous clients who are looking for easy-to-administer retirement plans. The funds will be used to scale Guideline’s proprietary platform and partnerships.