Kevin Busque, founder of Guideline Technologies and TaskRabbit, discovered that setting up 401k retirement programs within small businesses was a lot of work and many employees did not take advantage of the saving option. Four months ago he started the new company Guideline Technologies to increase 401k participation for smaller businesses and has already received $2 million in seed money.
The company doesn’t work with managed funds that have high costs, but instead is mostly working with Vanguard and their popular low cost index funds. Plus the interface the company has developed for employees to setup and fund their accounts is a lot user friendly than prior options in the marketplace.
The company still needs to get certified as an investment advisor and it is relatively small. But the new influx of funding is helping them to beef up staff and get the basics developed.
Investors feel the market is large enough that Guideline Technologies will be profitable and valuable to other companies looking for improved 401k processing.
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