US fintech Pontera secures $60m in fresh funding round led by new investor Iconiq Growth
Pontera, a New York City-based fintech firm offering wealth management services for 401(k) participants, has secured $60 million in new funding.
The latest round was led by new backer Iconiq Growth with participation from prior investors Blumberg Capital, Collaborative Fund, Hanaco Ventures, Lightspeed Venture Partners and The Founders Kitchen.
The company last secured fresh capital in February 2022, when it raised $80 million across three funding rounds. This latest investment brings Pontera’s total funding to date to $160 million.
Founded in 2012, Pontera (formerly known as FeeX) aims to solve what it calls the “retirement crisis” in the US, which it says involves a “widespread neglect of workplace retirement accounts held by 85 million Americans” and the associated operational challenges.
Through its platform, Pontera allows financial advisors to analyse, rebalance and report on workplace retirement account assets, including 401(k)s, 403(b)s and more.
It claims its platform can work with a “vast majority” of retirement plans and integrate with existing portfolio management tools to help advisors improve financial outcomes for their clients.
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.”
Sources tell Reuters that the funding brings Pontera’s valuation to over $550 million, with the company planning to use the new cash to hire 50 more employees in Israel – where more than 65% of its workforce is based – and further invest in product development.