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.