BrightScope is a company that helps people understand their 401(k) retirement plans and options in order to maximize their benefits. Across the country, about 30% of people that have 401(k) options do not utilize the plans. And about 22% of those that have the options do not contribute enough to maximize what companies ware willing to match.
I believe this is a very useful service. When I was working at a Fortune 50 company a couple years ago, I did not fully understand what the company was willing to match and so I decided not to contribute anything at all. Nor did I know the right questions to ask.
Given this lack of knowledge, BrightScope has raised $2 million to fully promote their service. The financing was led by Steelpoint Capital. As a result of the funding, Jim Cacavo and Tim Tokarsky will be joining the company board of directors.