The firm has raised a total of $160 million including the latest round of funding
Fintech startup Pontera has raised $60 million in latest funding led by investment company Iconiq Growth, the New York-based firm which builds software to help financial advisers manage retirement accounts, it said on Thursday.
Pontera did not disclose its valuation, but a source close to the firm said it was now worth more than $550 million. The source requested anonymity as the numbers are not public.
The firm has raised a total of $160 million including the latest round of funding. It also counts Blumberg Capital and Lightspeed Venture Partners as backers.
Financial advisers like Dynasty Financial Partners and SageView Advisory Group use Pontera’s platform to assess, rebalance and monitor various government issued retirement funds and other accounts across financial institutions.
Pontera co-founder and Chief Executive Yoav Zurel said the firm’s annual revenue has quadrupled since 2021, but did not give any financial details. It makes money by charging a fee to financial advisors who use the platform.
The New York-headquartered firm has 220 employees, out of which 65 per cent are based in Israel. Some of them have been called for reservist duty since the Gulf war broke out in October.
Zurel said he plans to invest the money raised in product and engineering, including hiring 50 more employees in Israel.
We have teams in the US and in Israel and our focus is serving the US retirement saver, he added.
By June 2021, 401(k) plans in the US held an estimated $7.3 trillion in assets and represented around one-fifth of the $37.2 trillion US retirement market, according to Investment Company Institute.
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