SAN MATEO — Guideline, a startup that helps small businesses offer 401(k) plans for employees, has rasied $35 million Series C round, led by Lee Fixel at Tiger Global Management. The company’s existing investors, including Felicis Ventures and Propel Ventures, also contributed, bringing total financing to $59 million to date.
Guideline said it grew its new plan count by 129 percent in 2018, giving the company 10 percent market share of new 401(k) plans in the U.S. More than 5,500 small businesses have selected Guideline for the modern, affordable retirement plan it offers, growing assets under management to about $750 million (a 270 percent increase). The company has expanded from 42 to 98 employees, and has offices in San Mateo, Austin, and Portland, ME.
The company plans to use the new funds to expand product offerings and hire new employees.
Guideline doesn’t charge 401(k) participants any fees on investments, regardless of the value of their assets or retirement account balance. And for employers, Guideline charges a low, flat-rate fee per participant, in contrast to the asset-based fee model predominant in the industry.