Fintech Startup Pontera Secures $60 Million in Funding Led by ICONIQ Growth
December 08, 2023
New York-based fintech startup Pontera announced a successful funding round, raising $60 million, with investment firm ICONIQ Growth taking the lead. While Pontera did not disclose its valuation, an anonymous source close to the company revealed it now stands at over $550 million. With this latest funding, Pontera has amassed a total of $160 million, with support from backers such as Blumberg Capital and Lightspeed Venture Partners.
Pontera’s platform is utilized by financial advisers, including industry players like Dynasty Financial Partners and SageView Advisory Group. The platform facilitates the analysis, rebalancing, and monitoring of government-issued retirement funds and other accounts across various financial institutions.
CEO Yoav Zurel stated that the company’s annual revenue has quadrupled since 2021, without specifying financial details. Pontera generates revenue by charging a percentage fee to financial advisors utilizing the platform. Headquartered in New York, Pontera plans to use the funds for product and engineering investment, aiming to hire an additional 50 employees in Israel. Currently employing 220 individuals, 65% of Pontera’s workforce is based in Israel, some of whom have been called for reservist duty since the Israel and Hamas conflict in October.
Zurel emphasized the company’s commitment to serving the U.S. retirement saver market. By June 2021, 401(k) plans in the United States held an estimated $7.3 trillion in assets, representing nearly one-fifth of the $37.2 trillion U.S. retirement market, according to the Investment Company Institute. Yoonkee Sull, a partner at ICONIQ Growth, highlighted the significance of Pontera in managing held-away assets, stating, “There was no real way or alternative for advisers to compliantly securely manage held away assets in the past, like they can with Pantera.”