- U-Nest — a company that created a mobile app making it easier for families to save for college — announced it raised $2 million in funding
U-Nest, a company that built a mobile app making it easier for families to save for college and other educational expenses, announced recently that it closed $2 million in a seed round of funding. The Artemis Fund and Draper Dragon led the funding round. Unlock Ventures, Vested Ventures, Band of Angels, and several individual angel investors also joined the round.
“Most families are struggling to meet the demands of the growing cost of education and we aim to help them achieve their goals,” said U-Nest founder and CEO Ksenia Yudina, CFA. “With this initial funding, we will expand our offering to more people that are looking for answers to this common problem. For many, U-Nest is not just the first step to college savings, but also a path to greater financial responsibility and security.”
According to the Federal Reserve, there are about 44.7 million Americans who owe about $1.6 trillion in student loan debt. And The College Board revealed that over the past three decades, the average tuition and fees tripled at public four-year institutions and more than doubled at public two-year and private nonprofit four-year institutions. This is why more savings vehicles like tax-efficient 529 accounts have been developed.
Ever since the pilot program launched in October 2018, the U-Nest app has significantly improved the 529 process. Instead of spending hours researching and completing application forms, parents are able to start using a plan in 5 minutes through U-Nest.
The U-Nest app helps parents set up a tax-advantaged and affordable savings plan that aligns precisely with the age of their child. And U-Nest also provides parents with full pricing transparency and low minimum investments thus breaking down the barriers that have hindered the broader adoption of 529 plans. Plus parents avoid expensive front loads and broker commissions and only pay a flat fee of $3 per month.
“U-Nest fits closely with our investment criteria – a breakthrough solution in a market with massive pent-up demand, supported by an accomplished, focused and motivated team,” added Andrew Tang, managing director at Draper Dragon. “Given the initial success of the product, we believe that U-Nest is on its way to establishing a leadership position in the US and international markets that have been waiting for a solution exactly like this.”
U-Nest will be using the funding to scale outreach across the country and collaborate extensively with partner organizations. Some of the additional team members at U-Nest also include CMO Peter Mansfield and COO Mike Van Kempen. Mansfield previously worked as the president of CMO.LA — which is the startup part of Mansfield + Associates and he also worked in Marketing for Marqeta. And Kempen was previously the Director of Growth at Acorns.
“As a firm focused exclusively on women entrepreneurs, it was critical that our first investment went to an exceptional entrepreneur with a brilliant product,” explained Leslie Goldman, managing director and co-founder at The Artemis Fund. “U-Nest’s CEO Ksenia Yudina fits the bill precisely. Her background as a senior level executive at the parent company of the country’s largest 529 provider combined with her drive and desire to disrupt under-resourced markets made this a great alignment for our fund.”
Before the closing of the seed round of funding, Frank Mastrangelo joined the U-Nest Board of Directors. Mastrangelo was previously the CEO of The Bancorp and COO of Green Dot Bank. And the UCLA Anderson Venture Accelerator also provided further support such as senior-level expert access.
