Capitalize Secures $19 Million in Series B Funding to Accelerate Digital Rollover Adoption

Date – 14-Aug-2024

Capitalize’s Rollover Volume Has Increased Over 6x in the Past 18 Months, Now Handling Several Billion Dollars in Retirement Account Transfers Annually

Capitalize Secures $19 Million in Series B Funding to Enhance Digital Retirement Account Transfers

Capitalize, the pioneering platform that digitizes the process of locating and transferring retirement assets, has successfully closed a $19 million Series B funding round led by RRE Ventures. This round also saw contributions from existing investors Canapi Ventures and Bling Capital, as well as new investor Industry Ventures.

Since its launch in 2020, Capitalize has rapidly scaled its platform, now processing several billion dollars in annual rollover transactions. The company’s platform and revenue have surged approximately sixfold in the past 18 months.

A key factor behind this growth has been Capitalize’s Enterprise business, which integrates its rollover technology directly into the onboarding and funding processes of major financial institutions. This integration helps customers seamlessly transfer legacy retirement accounts, such as 401(k)s, to new accounts of their choice. Capitalize has recently enhanced its offering with the launch of the Embedded Rollover API, enabling partners to integrate rollover capabilities natively into their systems.

“We’re excited to partner with RRE Ventures in this funding round, given their deep expertise and commitment to fintech innovation,” said Gaurav Sharma, co-founder and CEO of Capitalize. “Our goal is to modernize the outdated rollover process, enabling Americans to efficiently manage their retirement assets and allowing our partners to better serve their users.”

Every year, millions of Americans change jobs and either leave their 401(k) accounts behind or cash them out prematurely. Traditionally, the rollover process has been cumbersome, involving multiple institutions, extensive paperwork, and physical checks. This complexity has led to over $1.65 trillion in forgotten 401(k) assets. Capitalize’s digital solution simplifies this process, addressing both individual and institutional needs by streamlining the $1 trillion in annual 401(k) rollovers.

Raju Rishi, General Partner at RRE Ventures, commented, “We’re proud to support Capitalize’s mission to revolutionize retirement account transfers. We’ve been impressed by their strategic approach and are excited to see the continued impact of their innovative solutions.”

The new funding will be used to advance technology development, expand features, and enhance service capabilities for both partners and consumers. It will also support growth in new and existing Enterprise partnerships, and extend services to financial advisors and recordkeepers.