Micruity raises $5.1 million
Income connectivity platform Micruity has closed $5.1 million in seed financing. SixThirty Ventures led the round, with participation from Allianz Life, Franklin Templeton, Pacific Life, and Western & Southern Financial Group, Alpine Meridian Ventures, Great North Ventures, and Altari Ventures.
Founded in 2017, the Canadian company facilitates data sharing between insurers, asset managers, and record keepers through a single point of service that lowers the administrative burden for plan sponsors and enables them to turn “retirement savings plans into retirement income plans at scale.” The platform currently supports annuities inside 401(k) plans.
“The decline of defined benefit pension plans has left a retirement savings gap that will grow to $137 Trillion by 2050. 401(k) plans were designed as retirement savings plans, but today most Americans rely on these plans as their sole source of retirement income, leaving them vulnerable to market corrections outside their control. Annuities are an attractive alternative that can take some of the guesswork out of retirement planning and help us close the savings gap for Americans.” – Trevor Gary, co-founder and CEO of Micruity.
“Making annuities accessible through 401(k) plans requires a new infrastructure that can support secure data transfer between stakeholders over the lifetime of a product or plan. One-to-one integrations are costly and act as a barrier to smaller plans and products. Only a product agnostic platform adaptable to different forms of data sharing can support the connectivity necessary to scale annuities and help all Americans achieve a more secure retirement,” said Chris Livadas, co-founder and CTO of Micruity.
“There is a retirement readiness crisis in the United States and many Americans have simply not saved enough. Adding retirement income products to the most commonly-used retirement savings vehicle is a natural progression for the defined contribution marketplace that can help Americans realize a more secure retirement. Delivering on the promise of a more financially secure retirement requires a new foundational technology infrastructure that enables connectivity across the ecosystem, at scale. And Micruity is leading the way” – Joel Brightfield, principal at SixThirty Ventures.
“We are excited to take this next step in our relationship with Micruity as part of their mission to close the retirement savings gap. In building the technology infrastructure that connects all participants in the annuity ecosystem, Micruity lets us focus on building lifetime income products that help people manage risks in retirement.” – Matt Gray, head of employer markets, Allianz Life.