Venture capital firm NFT Ventures invests in retirement planning-service said to be on the common man’s side.
Pensionskraft’s business idea is to undertake one of the most debated issues within the Swedish financial sector, namely the lack of independent counseling.
The way the pension sector is today, the insurance broker gets a commission from e.g. a funding company, when the broker manages to attract a new customer to the funding company. By that, the broker gets an economical incentive to recommend pension funds which pay a high commission – regardless whether it’s good for the customer or not.
Pensionskraft have a different model. The company allows individuals to register on a site in order to start paying 79 Swedish Krona ($6.66) monthly for pensioner’s counseling. No brokerage, no provisions – but, as mentioned, a monthly fee.
“We have a firm belief that people are willing to pay for independent counseling. Contrary to some other, we are geared towards common employees and not just the wealthy” co-founder of Pensionskraft, Tobias Lejnerborn says.
Tobias Lejnerborn says that Pensionskraft is focusing on reducing the fees for users.
“The customers are to feel confident in that the choice we make for them does not benefit us in the form of commission, but that it is about giving them as good a pension as possible. The traditional pension’s sector seems to believe that they must hide their fees for the customer to accept them. We think the exact opposite and are completely open about the charge”, he says.
Tommy Wahlund says that the founders began by asking potential clients what sort of service they wanted.
“Many probably experience that they are far off from their retirement. We wanted to construct a product completely from the client’s point of view and make pension’s saving a bit more present in daily life”, he says.
Pensionskraft have been around for more than a year, they have 20 employees and are yet to announce a full fiscal year.
Now, the company will bring in an equivalent of $460.000 in a venture capital round where private investor Anders Böös (previously HQ Bank) also participates but where NFT will account for the lion share of the money.
The parties have chosen not to communicate the amount, but documents from Bolagsverket show that it is precisely $460.000.
The plan is that Pensionskraft now will grow faster and develop more digital products which will help customers to push pension fees.
“We shall be one of the biggest in the Swedish pension’s sector, within five years. We think it takes marketing efforts to scale up if you have high ambition- and growth targets. NFT are a very good media partner then, says Tobias Lejnerborn.
NFT Ventures have in turn media group Bonnier as a large investor. The venture capital firm has previously invested in Leasify and law site Avtal24, among other.
NFT have a habit of not only offering money to their portfolio companies, but also advertisement space on the sites of for instance Dagens Industri or Dagens Nyheter.