Gaurav Sharma, CEO & Co-Founding father of Capitalize — Simplifying Retirement Financial savings | by Anirudh Singh | Wharton FinTech | Apr, 2022


In at this time’s episode, I’m joined by Gaurav Sharma, CEO and Co-Founding father of Capitalize a venture-backed fintech firm in New York targeted on the retirement financial savings market.

Gaurav and I cowl a variety of subjects, together with:

The Measurement of the 401K Rollover Challenge:
After working in monetary companies for 10 years and at a variety of corporations, Gaurav gained acute data of the U.S. 401K financial savings challenge — when employees change jobs, their 401K accounts don’t change with them. Coming from Australia additionally helped Gaurav achieve perspective on what a extra easy, obligatory financial savings account appears like. Having grown up round entrepreneurs, Gaurav determined to sort out this downside himself. Capitalize has discovered that 15–21M folks will change jobs and 401K accounts per 12 months, and roughly 1/third of these folks money out their accounts, ($100M in whole) paying taxes and penalties on their cash. One other 3–4M folks go away their cash behind for an prolonged time frame. Capitalize has calculated that there are $1.3T in property sitting within forgotten 401Ks.

Capitalize’s Product and Buyer Base:
Capitalize affords an internet expertise that helps shoppers discover their previous 401K accounts, examine and choose the suitable IRA, and handles the rollover course of on-line providing top-tier consumer service to ensure the cash will get consolidated into 1 new account. Presently, Capitalize predominantly serves people of their early to mid-30s which have had 3–5 jobs since graduating. Nonetheless, Gaurav has seen this consumer base broaden past the early adopters, right into a extra mainstream base. The success of this product has made Capitalize one among Time’s Finest Innovations in 2021.

The Fundraising Course of:
Capitalize raised its Sequence A spherical in February of 2021 from a variety of distinguished fintech traders, together with Canapi Ventures (lead), Bling Capital, Greycroft, RRE Ventures and Walkabout Ventures. Gaurav credit investing in private relationships with VCs, and maintaining them appraised of the progress they have been making, for the success of their Sequence A spherical. Whereas the fundraising course of is rarely straightforward, Gaurav and the crew felt like they have been capable of streamline it as a lot as potential.

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Gaurav Sharma:
Gaurav leads Capitalize’s mission to assist folks save for retirement. Earlier than founding Capitalize, he labored for among the best-known monetary establishments, together with JP Morgan, UBS, Morgan Stanley, and as an investor at well-known hedge fund Greenlight Capital. After seeing how arduous it’s for most individuals to know their retirement accounts, he determined to construct an organization that makes it simpler. An Australian by beginning, Gaurav lives in New York together with his spouse and their adopted pet, Lorenzo.

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In regards to the Creator:
Anirudh Singh is a second-year MBA Candidate at The Wharton College, the place he’s a part of the Wharton FinTech Podcast crew. He has a ardour for financial improvement, enterprise capital, monetary companies, and all issues FinTech. Don’t hesitate to succeed in out with questions, feedback, suggestions, and alternatives at singhan@wharton.upenn.edu.

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