– USA, CA – Northstar, a fintech company that enables employers to offer financial wellness as an employee benefit, today announced $10.7 million in financing, including a new $7.3 million Series A led by M13 with participation from Foundation Capital and Workday Ventures.
Concurrent with the financing, Matt Hoffman, M13’s Partner and Head of Talent and DigitalOcean’s former VP People, has joined the Northstar’s board.
The investment comes on the heels of breakout growth and adoption from leading employers including Zoom, ServiceTitan, and Thumbtack.
Additional investors include Parade Ventures, Ludlow Ventures, Designer Fund, Combine, RRE Ventures, Swell Partners, PeopleTech Partners, and founders and C-level executives from NerdWallet, Plaid, Adobe, Amazon, BrandSafway, SunRun, Yelp, Product Hunt, and Thumbtack.
Northstar makes financial guidance accessible to all individuals by reimagining it as an employer-provided benefit.
By personalizing financial guidance, Northstar has helped employees achieve their distinct financial goals, like saving to buy a house, planning to start a family, paying off debt, saving for retirement, and more.
“The Northstar financial wellness benefit is a perfect fit with Zoom’s employee focus,” said Sheila Krueger, Head of Global Benefits at Zoom. “Our employees are taking up the offer for assistance from Northstar’s CFPs at a rapid pace. Northstar is a piece of the wellness puzzle that was missing, and we’re so happy to provide it to our employees.”
Founded by Will Peng and Matt Matteson, Northstar was inspired by their personal experiences struggling with the systemic problems individuals face with personal finances. Peng, an immigrant, graduated with $35K of student debt and paid thousands in unnecessary interest because he didn’t know anyone to ask for advice. As General Partner of Red Swan Ventures – which has investments in Guideline, Even, Oscar, and Coinbase – Peng had a front seat to innovative ways that new fintech can solve these financial issues.
“We love partnering with employers – it’s a natural fit,” said CEO and co-founder, Will Peng. “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.”
Leading Northstar’s Series A is M13, which has investments in companies including Ring, Lyft, and Snap. M13 brings to Northstar both the holistic support of its Propulsion platform and specialized HR tech expertise in Matt Hoffman.
“Northstar has helped redefine a new category of employee benefits, and it’s absolutely one that meets the moment for the world we are in,” said Matt Hoffman. “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.”
About Northstar
Northstar is the leading employee financial wellness, compensation, and benefits platform. Northstar supports employees’ key financial decisions through 1-on-1 CFPs and innovative financial management tools. Founded in 2016 by Will Peng and Matt Matteson, Northstar has partnered with several of the world’s leading employers including Zoom, ServiceTitan, and Thumbtack. Northstar has raised more than $10M from M13, Foundation Capital, Workday Ventures, Parade Ventures, and top founders and executives at NerdWallet, Plaid, Adobe, Amazon, SunRun, and Yelp.
For more information: https://www.northstarmoney.com/
About M13
M13 is a venture engine built by founders to serve founders. Founded in 2016 with offices in Los Angeles, New York, and San Francisco, M13 invests in early-stage consumer tech companies driving change in consumer behavior over the next decade. With more than 80 direct investments and 16 exits, M13’s portfolio totals over $137B in enterprise value and includes Lyft, Pinterest, Ring, Daily Harvest, FabFitFun, Rothy’s, and others.
For more information: https://m13.co/
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