Backer Receives $9.5 Million in Series A Financing

Backer, the premier fintech company specializing in tax-advantaged 529 Savings Plans, has announced the successful completion of its $9.5 million Series A financing round and the acquisition of Saving For College (savingforcollege.com). Saving For College stands as the foremost 529-related media property and education savings resource, relied upon by millions of American families annually.

Jordan Lee, the founder, and CEO of Backer, expressed the company’s mission, stating, “From day one, our mission has been to use technology to help the 529 industry reach a younger generation of parents. As we enter a new era of AI-powered tech, we see an exciting opportunity to combine the industry’s highest-traffic web destination with the industry’s top product team to modernize the way American families discover, enroll in, and engage with 529 plans.”

529s have served as a potent college savings tool for decades, accumulating over $450 billion in assets across 16 million accounts. Recent legislative changes have expanded their utility to cover K-12 private school tuition, apprenticeship programs, and student loan debt. Most notably, Congress has made it possible to transfer some unused 529 savings into a Roth IRA. Since its establishment in 1999, Saving For College has stood as the preeminent 529 information resource, guiding tens of millions of Americans through the complex landscape of 529 plan options to make informed decisions for their families.

Backer has earned recognition for its innovation within the 529 industry. Since its introduction in 2017, the Backer consumer savings app has aided over 200,000 parents and children in saving a projected $250 million for education, with 40% of the savings contributed by family and friends. Backer’s high-conversion enrollment process, consumer-grade gifting platform, and pioneering mobile app have positioned it as a crucial technology partner for numerous 529 programs across the country.

WndrCo, a team of Silicon Valley builders and operators founded by early Dropbox executive Sujay Jaswa and Hollywood legend Jeffrey Katzenberg, led Backer’s venture round. ChenLi Wang, General Partner at WndrCo, expressed excitement about the partnership: “We are thrilled to partner with Backer to transform how families across America save for college. We believe high-quality educational content and intuitive consumer experiences are the keys to improving financial literacy.”

Jordan Lee acknowledged the significance of the partnership with Saving For College, stating, “For decades, Saving For College has been an indispensable resource for American families and the many finance professionals working at the state level to grow 529 adoption. We are honored to partner with the domain experts at Saving For College to ensure that 529s will continue to meet the needs of generations to come.”