401K GPS brings retirement planning services online

401K GPS, an online retirement planning service, received its first outside investment this summer when it landed five figures' worth of seed capital from the state of Michigan.

The Brighton-based tech startup landed $27,000 from the state's Business Accelerator Fund with the help of the Macomb-OU INCubator. That cash will go toward the company’s marketing efforts, building a new website, and licensing its technology.

"It was a pretty big deal for us," says John Eaton, general manager of 401K GPS. "It was the first time we got any external money. We were entirely self-funded before then."

401K GPS sells a software platform that helps take the guesswork out of managing retirement plan investments. It got its start as a service so consumers could manage their own 401Ks.

"It is a technology solution to an advisory problem," Eaton says.

401K GPS and its team of two employees and two interns changed up its business model earlier this year. It went from a consumer-facing platform to one that could be leveraged by financial advisors. The move allowed the startup to double its revenue.

"That was a significant change in the business model," Eaton says. "We went where there was no  competition."

Source: John Eaton, general manager of 401K GPS
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
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