Feather sits at the forefront of a $35 Billion market expansion in 401K access throughout the United States.
We’re thrilled to announce our partnership and investment in Feather; an embedded modern 401K platform for employers, CRM systems, HR platforms and PEOs. With Feather, through a set of APIs, any partner platform or distributor can offer a modern 401K plan in mere minutes. We joined with Y Combinator, Pioneer Fund, FF, and other investors in this fundraising round.
Feather aligns with our broader thesis of building value in embedded opportunities; technology centric products that offer significant value to end customers via a partner distribution channel. Similar to our existing portfolio companies like OneVest and Walnut, Feather will drive accretive value into the partners and businesses they support, who in turn, can offer more value into their own customer base with a new offering that is nearly instantaneously embeddable. Similar to how OneVest provides embedded wealth management and Walnut provides embedded insurance, we view Feather as a complimentary embedded offering; this time in the benefits space.
Feather is riding one of the most important marketplace tailwinds we have ever seen. In the past two years, 14 US states have passed legislation mandating that all companies with 5 or more employees are legally required to offer 401k plans. An additional 16 states are expected to pass legislation in the next 12 months alone. Combined, this legislation opens up a $35 Billion expansion of the 401k market virtually overnight. We believe that the Company is well positioned to capture a material segment of this new market expansion as the product’s embedded positioning through HR and benefits providers places their offering within arms reach of the end customer.
Feather is, first and foremost, a technology centric business and the founders of the Company, Aahan Sawhney and Saurabh Jain, are some of the more talented we have ever seen tackle this unique market.
We’re excited to take this journey with Feather and watch them transform modern 401Ks for small businesses across the United States.