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Capitalize Secures $12.5 Million in Series A Funding Led by Canapi Ventures

·4 min read

401k Rollover Platform Has Processed Almost $10 Million In Volume Since Recent Launch

Funding to Drive Continued Growth, Enhance Product Offerings and Support Strategic Investment in Talent to Reach More Consumers

Capitalize, the first online platform to help consumers transfer retirement assets, today announced the close of a $12.5 million Series A investment round. Canapi Ventures led the round with participation from Capitalize’s existing investors, including Bling Capital, Greycroft, RRE Ventures and Walkabout Ventures. The new round will drive continued growth, support strategic investment in talent and enable Capitalize to add new services as it helps consumers save for retirement nationwide.

Capitalize has built the first and only online platform for consumers to roll over and consolidate legacy retirement accounts like 401ks. Over 15 million 401k account holders change jobs each year, the majority of whom either cash out or leave their assets behind for an extended period of time due to the historically complicated rollover process – creating growing gaps in the $20 trillion retirement savings market. Capitalize’s unique mix of proprietary technology and leading customer service helps users instantly locate misplaced 401k accounts, select and open individual retirement accounts (IRAs) at leading financial institutions, and initiate rollovers on their behalf for free. By helping terminated employees roll over 401ks at the time of job change, Capitalize enables individuals to keep track of their savings and helps employers lower administrative fees and fiduciary risk. The company has partnered with leading financial institutions to offer IRAs on its platform, as well as with a number of employers and HR platforms to offer its service to former and departing employees. Capitalize has a clear path to continued growth by automating the $500 billion of 401k-to-IRA rollovers that take place each year. Since its launch in September 2020, the company has helped individuals transfer almost $10 million in retirement assets.

"We’re making it easier for all Americans to save for retirement as they move through their careers," said Gaurav Sharma, Co-Founder and CEO of Capitalize. "Each year, more than $20 billion in retirement savings is lost to taxes and penalties due to an inefficient rollover system, with millions of additional retirement accounts left behind when people change jobs. We’re thrilled at the progress we’ve made since our launch, only months ago, and by the trust of our users and partners. This Series A financing enables us to reach more consumers, significantly expand our team and offer new services to help our users save for retirement. We couldn’t be more excited to have partners like Canapi on board as we help more Americans get their retirement savings on track."

Jeffrey Reitman, Partner at Canapi Ventures, said, "The retirement savings process has been riddled with inefficiencies and relatively untouched by technology for far too long. Capitalize is solving a critical need for so many Americans and has already made impressive strides doing so. Many of our bank LPs offer digital IRA products, and Capitalize’s offering will enhance their customer experience while enabling them to grow AUM. We are excited by the market receptivity to their product, and we’re looking forward to helping the team unlock substantial opportunities for growth."

About Capitalize

Capitalize is a New York-based fintech company on a mission to help people save for retirement. Their online platform helps people quickly consolidate or roll over their old 401k accounts into a new or existing IRA - for free. Capitalize manages the entire 401k rollover process for users through an online alternative to the existing manual, paper-based process of transferring retirement accounts. Over time, Capitalize intends to help users manage all of their employer-sponsored and individual retirement accounts as they move throughout their career. www.hicapitalize.com

About Canapi Ventures

Canapi Ventures is a venture capital firm investing in early to growth-stage fintech companies. Our partners have been at the forefront of financial services innovation as operators, investors, bankers, advisors, and regulators. Our venture capital model connects high-quality fintech companies to our extensive network of banks and strategic partners. Canapi Ventures is advised by CenterHarbor Advisors and Canapi Advisors, LLC, a wholly owned subsidiary of Live Oak Bancshares, Inc. (Nasdaq: LOB). For more information, visit www.canapi.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210211005180/en/

Contacts

Sard Verbinnen & Co.
Chris Kittredge/ Danya Al-Qattan
Canapi-SVC@sardverb.com