Social Financial savings Platform CollegeBacker Rebrands to “Backer” & Scores $8.four Million in Enterprise Capital

CollegeBacker, a U.S.-based  social financial savings platform for digital funding recommendation to 529 plans, introduced on Wednesday it not solely has modified its identify to Backer however has additionally raised $8.four million in enterprise capital. In keeping with Backer, the funding spherical was led by Crosslink Capital with participation from Rally Ventures, Correlation Ventures, and Enlargement Ventures. Jim Feuille, an early investor and board member at Chime, Pandora, and Private Capital, has joined the Backer board.

Based in 2016, Backer describes itself as a social financial savings platform that helps folks create tax-free 529 accounts for his or her youngsters, offers funding steering, and permits household and mates to contribute with ease. Backer founder and CEO, Jordan Lee, shared extra particulars in regards to the firm by stating:

 “We began with a social faculty fund powered by a 529 plan as a result of mother and father have been clamoring for a extra fashionable strategy to save. As Backer, we are going to proceed to propel the 529 business ahead technologically and assist our households in new methods, making it straightforward to assist family members arrive at life’s greatest milestones with monetary safety.”

Backer additional revealed that its rebrand is available in half as a result of Congress has been steadily increasing using 529 plans past conventional faculty prices to incorporate Ok-12 non-public faculty, apprenticeship applications, and scholar mortgage paydown. Backer additionally reported it has already helped its purchasers save $20 million for school, with 40% of the cash coming from household and mates – a price of gifting that’s 30x increased than the business common.

Funds from the newest funding spherical can be used to proceed the expansion and growth of Backer’s platform.