Fintech Startup Northstar Raises $10.7 Mn Led By M13
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Fintech company Northstar on Wednesday announced that it has raised $10.7 million in financing including $7.3 million in Series A round led by M13 along with participation from Foundation Capital and Workday Ventures. The startup which helps employers to offer financial wellness as an employee benefit claimed the funding has come on the heels of its growth.
Founded by Will Peng and Matt Matteson in 2016, Northstar has helped employees achieve goals such as buying a house, starting a family to paying off debt and saving for retirement. The startup has claimed to help employees during the ongoing COVID-19 pandemic which has only exacerbated the personal finance, with people losing jobs and major paycuts.
Commenting on the startup, Peng, chief executive officer (CEO) and co-founder of Northstar, said, "For generations, employees have gotten paychecks and retirement plans through work, but without guidance to manage their finances and achieve their goals. Employment is the primary source of financial stability and wealth creation, and Northstar is redefining the employee experience."
Both the co-founders established the startup after taking inspiration from their own struggles with personal finances.
Commenting on the investment, Matt Hoffman, partner at M13 said, “As an investor, M13 sees the limitless potential for Northstar to transform financial planning into a delightful experience that touches everyone at the most impactful point of their financial journey—where they earn their salary. As a former HR leader, I am inspired by Northstar’s beautifully intuitive product and vision to help employees better understand the drivers of their total compensation and apply them effectively to plan for their financial future and health."
As a part of the deal, Hoffman has joined Northstar Board. The startup currently has partnered with employers such as Zoom, ServiceTitan and Thumbtack.