Basic Capital, a 401(k) platform that offers an innovative financing option to help workers achieve their retirement goals, announced the successful closing of its $25 million Series A funding round led by Forerunner and Lux Capital, with participation from existing investors SV Angel, Box Group and financial luminaries including Henry Kravis. New investors included HOF Capital and Inspired Capital.
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Basic Capital is the first and only 401(k) platform that allows participants to finance assets and offers access to alternative investments. This significant investment will accelerate the company’s expansion efforts, allowing Basic Capital to modernize and enhance 401(k) offerings for employers and employees.
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“The engine of 401(k)s has not been significantly upgraded in 40 years,” said Abdul Al-Asaad, Founder and CEO of Basic Capital. “This new investment into Basic Capital, alongside policy changes emerging from Washington, D.C., represents a huge win for American workers as retirement plans get brought into the 21st century.”
Basic Capital plans to use the funding to accelerate the adoption of its 401(k) solution among employers and continue building out its team. The company partners with employers to offer its 401(k) platform and offers individual IRA plans, with the goal of scaling to serve significantly more retirement savers across both product lines.
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“American innovation has generated extraordinary financial prosperity,” said Peter Hebert, Co-Founder & Partner, Lux Capital. “But historically, federal regulation has prevented millions of American workers from accessing opportunities to build wealth. The Basic Capital team has developed a novel solution to help everyday Americans finance investment, rather than consumption.”
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Source : businesswire