This morning HelloWallet announced that they closed $12 million in Series B funding. Chicago-based Morningstar, Inc. invested $6.75 million and DC-based TD Fund (TDF) invested $4 million. Existing investors and new investors also participated in the round. Morningstar and HelloWallet plan to co-market their services to employers and 401(k) providers.
I had a chance to chat with HelloWallet founder and CEO Matt Fellowes this afternoon about why they pursued Series B funding and how they gained the attention of Morningstar and TDF.
Tech Cocktail: Why did you choose to raise Series B funding?
Matt Fellowes: We are perfectly complementary with Morningstar’s services, because we are focused on helping people save, and they help people manage those savings. So basically, we are both committed to helping others.
Morningstar was actually created because workers weren’t getting the informatioin they needed to make investments; I came to the same conclusion a few years ago about saving money. Our missions and cultures are perfectly aligned, and they’re going to be a great partner for us. They work with 20 million people now, while we have 350,000 subscribers, so we’ll be able to grow faster than we initially planned on.
Tech Cocktail: How do you get companies like TDF and Morningstar interested?
Fellowes: We had about 30 venture capital firms approach us in recent months…
Tech Cocktail: No way!
Fellowes: Yeah [laughing], we were actually oversubscribed in this round – it was really exciting. We love TDF – it is run by a really great guy, Jim Pastoriza, who can help take us to the next level. Plus, they’re here in DC, and we are both passionate about helping grow the DC tech scene – the more entrepreneurs and startup we can help grow and thrive here, the better for all of us. HelloWallet even host events for entrepreneurs here in our offices to help them gain exposure for their ideas and companies.
Tech Cocktail: So, what is coming down the pike for you?
Fellowes: Well, we’ll move into a bigger space so we have room for new employees, and we’ll work with Morningstar on full integration of our services.
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