Basic Capital, a 401(k) platform, recently raised $25 million in a Series A funding round. This funding was led by Forerunner and Lux Capital, with contributions from SV Angel, Box Group, and notable investors like Henry Kravis. New investors include HOF Capital and Inspired Capital.
Basic Capital is unique because it allows users to finance assets and access alternative investments through their 401(k) plans. This funding will enable the company to expand and enhance its services for both employers and employees.
The company plans to use the funding to promote its 401(k) solution to more employers and to expand its team. Basic Capital partners with employers to provide its 401(k) platform and individual IRA plans, aiming to serve a broader range of retirement savers with both offerings.
KEY QUOTES:
“The engine of 401(k)s has not been significantly upgraded in 40 years. 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.”
Abdul Al-Asaad, Founder and CEO of Basic Capital
“American innovation has generated extraordinary financial prosperity. 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.”
Peter Hebert, Co-Founder & Partner, Lux Capital
