Pontera has raised $60m to expand its operations to execute on its mission. The funding round was led by ICONIQ Growth, the global venture capital firm that also backed Zoom, Uber and Airbnb.
Additional backers include Blumberg Capital, Collaborative Fund, Hanaco Ventures, Lightspeed Venture Partners, and The Founders Kitchen. This brings total investment to $160m to date.
It now plans to double in team size in the next 24 months.
Pontera was formed in 2012 as FeeX with the goal of empowering retirement savers to achieve a better retirement. It started with providing a data transparency platform. This focused on fund options and fees in plan participants’ workplace retirement accounts. Since then, it has come to the conclusion that retirement savers need more than just data. They want actual assistance with managing retirement accounts.
Yoav Zurel, CEO, Pontera, says when savers turn to their personal financial advisor, they most often met receive little assistance.
Bridging the gap to comprehensive retirement planning
In 2018, Pontera pivoted to provide the platform it had been building over years to financial advisors. Pontera introduced a secure and compliant path to professional 401(k) management as part of the worker’s full financial picture. The former FeeX rebranded as Pontera in 2022 following a funding round that raised $80m. The brand comes from the Latin word for bridge “pont” as it aims to bridge people to a better retirement.
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“With the entirety of our last funding round in the bank, Pontera was not seeking a capital raise,” said Zurel. “Having persevered through rocky early years as a startup, we operate with extreme thought and prudence in capital deployment. According to our partners at ICONIQ, this execution style, combined with a product that benefits the entire retirement ecosystem and a track record of quadrupled revenue since our last fundraise, made Pontera an attractive investment opportunity.
ICONIQ Growth-stellar network and track record
“We were approached by many investors. ICONIQ Growth stood out as a true believer in the problem we’re solving and our mission. The fund comes with a stellar network and a track record of portfolio companies. This includes Uber, Zoom, Airbnb, Datadog, DocuSign, 1Password, and Canva. We were pleased to close the round in November with a modest valuation increase from our last valuation.
The timing is especially near to my heart as a company founder. With a significant research and development office in Israel, a country at war, this investment signals even stronger support for the talented team we’ve built. We have maintained fully operational status with robust business continuity and employee support programmes.
In the coming years, we will use these funds to invest in our product, team, and business growth. We anticipate that in the next 24 months, we will double in team size
This funding is not just an investment in Pontera. It’s an investment in the future of every US worker aiming for a secure and fulfilling retirement.”