Israeli financial technology company Pontera has successfully secured $60 million in a recent investment round led by ICONIQ Growth, with additional contributions from The Founders Kitchen, Hanaco Ventures, and Blumberg Capital. Previously known as FeeX, the firm now holds a valuation of over $550 million, accumulating a total of $160 million in funding. The company specializes in assisting financial institutions and digital wallets by offering solutions that streamline the management of brokerage accounts and investment trading. With this latest investment, Pontera aims to further develop its product offering and expand its global presence, targeting both established finance firms and rising fin-tech startups.
Rebranding and refocusing
Initially established as a platform to compare commissions and management fees in pension funds, Pontera has rebranded and shifted its focus towards connecting individuals with pension advisors. Following this strategic reorientation, Pontera aims to streamline the process of finding tailored pension advice, while simultaneously increasing transparency and enabling better-informed decision-making for its users. With an expansive network of experienced pension advisors, the platform now offers personalized plans designed to optimize individual pension savings and retirement goals.
Advanced platforms for financial advisors
Financial advisors such as Dynasty Financial Partners and SageView Advisory Group utilize Pontera’s platform to analyze, rebalance, and monitor various government-backed retirement funds and other accounts across multiple financial institutions. These advanced platforms provide comprehensive analysis and ensure that portfolios are adjusted as needed to maximize returns and minimize risk. Additionally, they enable financial advisors to track funds and account performance efficiently, allowing them to make more informed decisions for their clients’ financial well-being.
Company growth and revenue increase
Yoav Zurel, the New York-based CEO of Pontera, stated that the company’s annual revenue experienced a fourfold increase since 2021. This significant growth can be attributed to the company’s innovative solutions and strategic partnerships that have gained traction in the market. As Pontera continues to expand its footprint, Zurel expects this positive trend to persist and contribute to the organization’s long-term success.
Fee-based approach and strong partnerships
The firm generates income by charging financial advisors a percentage fee for using its platform. This fee-based approach aligns the interests of the firm and the financial advisors, as both parties benefit from the provision and utilization of high-quality tools and resources for clients. Consequently, this encourages a strong relationship between the firm and its affiliated advisors, ultimately leading to enhanced financial services and greater client satisfaction.
Workforce expansion and product development
The recently obtained funding will support the addition of 50 new employees in Israel, following the hiring of 100 employees globally in the past year. This growth in workforce is a testament to the company’s ongoing success and commitment to innovation. With these new hires, the company aims to accelerate product development while strengthening customer support and engagement. This new investment will enable the firm to provide better services to its clientele and contribute to its continued growth in the financial technology industry.
First Reported on: calcalistech.com
FAQ
What is Pontera’s main focus?
Pontera specializes in assisting financial institutions and digital wallets by offering solutions that streamline the management of brokerage accounts and investment trading. It connects individuals with pension advisors, streamlining the process of finding tailored pension advice and increasing transparency for better-informed decision-making.
Which financial advisors use Pontera’s platform?
Financial advisors such as Dynasty Financial Partners and SageView Advisory Group utilize Pontera’s platform to analyze, rebalance, and monitor various government-backed retirement funds and other accounts across multiple financial institutions.
How does Pontera generate income?
Pontera generates income by charging financial advisors a percentage fee for using its platform. This fee-based approach aligns the interests of the firm and the financial advisors and encourages a strong relationship between them.
How has Pontera’s annual revenue grown in recent years?
Since 2021, Pontera’s annual revenue has experienced a fourfold increase, attributable to the company’s innovative solutions and strategic partnerships in the market.
How many employees will Pontera hire with the new funding?
With the recently obtained funding, Pontera plans to add 50 new employees in Israel, following the hiring of 100 employees globally in the past year.
What are Pontera’s plans for the new investment?
Pontera aims to use the new investment to further develop its product offerings, expand its global presence, accelerate product development, strengthen customer support and engagement, and contribute to its continued growth in the financial technology industry.
