New investors include GGV Capital, PayPal Ventures, Thomson Reuters Ventures and Canvas Ventures.
Since December 2020, Northstar has grown its customer base by over 600% and supports innovative organizations such as Snap, Zoom, 23andMe, Virgin Orbit and NerdWallet.
LOS ANGELES, October 13, 2022–(BUSINESS WIRE)–North Star, the financial benefit for employee wellbeing, today announced that it has raised $24.4 million in new funding led by GGV Capital and joined by new investors PayPal Ventures, Thomson Reuters Ventures and Canvas Ventures. Existing investors M13, Workday Ventures, Parade Ventures, Foundation Capital, Designer Fund and RRE also participated, bringing Northstar’s total funding to $40 million.
Northstar’s Financial Wellness Program guides employees through different life and financial situations, and helps companies support their teams at scale through onboarding, open enrollment, equity events, etc The additional capital will allow the company to expand its products and global reach to further Northstar’s mission of bringing 100% financial well-being. Employees in 18 countries can now work with Northstar, and the company plans to expand to more than 30 countries by the end of 2023.
Establishing and maintaining financial stability has become increasingly difficult in the current economic environment, accentuated by record inflation and labor market volatility. Today, 42% of high earners earning more than $100,000 a year and 70% of millennials are living paycheck to paycheck. Financial advice has become a basic need for Americans, but the traditional model for receiving financial advice typically forces individuals to choose between quality and cost. Northstar eliminates this trade-off by redefining financial well-being and delivering it at scale through employers, the primary source of most wealth creation.
“Financial well-being is a universal challenge, and today we face a dizzying array of complex decisions and trade-offs, from understanding debt repayment strategies to contributing to retirement,” said Will Peng, CEO and co-founder of Northstar. “By working with employers, we are able to solve a problem for both employee and employer, because work is the decision point for so many financial and life choices. Northstar provides different types of advice under one roof: financial, benefits, equity, salary.”
Northstar has developed a new set of advisory tools to support individuals in today’s financial environment. Rather than using the common call center model, Northstar employs full-time in-house financial advisors (CFP®) and matches each employee 1-on-1 with a personal Northstar advisor, with whom they work constantly. Northstar supports both its financial advisors and employees with technology, through an exclusive suite of personal finance and total rewards tools. Northstar member employees report an average 83% improvement in financial stress after meeting with their personal Northstar financial advisor (Northstar Member Survey, 2022).
“Financial advice as a service has been around for many years, but many consumers don’t have access to financial advisors, which creates a huge market,” said Hans Tung, managing director of GGV Capital and board member. of Directors of Northstar. “At GGV, we share Northstar’s vision that financial wellness should be universal for all employees. It is the next highly sought-after employee benefit after mental health. Will has assembled an incredible team to seize this opportunity revolutionary.”
Innovative employers like Snap, Zoom, 23andMe, Virgin Orbit, and NerdWallet partner with Northstar to communicate the value of their Total Rewards and help employees take action on their compensation to support their life goals. Employees benefit greatly from this benefit, as Northstar’s average enrollment rate is 50%, which compares to averages of 15-30% cited by competitors and their former employer clients. Northstar is proud to have 100% retention of every employer customer who has offered the benefit to their company.
Northstar is an employee welfare financial benefit. With innovative fintech tools and a team of in-house financial advisors, Northstar helps employees get the most out of their total compensation and make financial decisions with confidence. Northstar guides employees through different financial and life situations, and shows them the full value of their compensation, equity and benefits. Northstar provides one-on-one financial and benefits consulting to employees, helping companies increase engagement and support their large-scale teams during onboarding, open enrollment, training events, and more. fairness, etc. For more information, visit https://www.northstarmoney.com/.
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