August 22, 2021


⚾ The Elevator Pitch:

Over 100 million American employees are missing out on “401(k) matching” benefits - another phrase for employers doubling what you save for your retirement. Unfortunately, with kids, mortgages, and other "adulting" expenses, some households simply can't afford to take the money out of their paycheck for the match. That's free money, lost.

Lendtable changes that. They give a no-interest loan to employees across America to help them take FULL advantage of their 401(k) match (or ESPP pools). In exchange, they take a small (5-10%) cut of the match. Lendtable knows that if the average American started using their 401(k) match at the age of 20, they would be a millionaire by 60. Their vision: make everyone a millionaire, regardless of income level.

👇 The Drop Down

Founded: 2020
Stage: Seed ($4.5M total funding)
Tech trend: Fintech
Traction: YC S20 Company, thousands of users
Founders: ex FB and Dropbox PMl; Youngest person to get into Northwestern,
Mitchell Jones (Yale)
Sheridan Claybourne (Northwestern, Thiel Fellow)

🔍 Our analysis

  1. 📈 Large Market
    The 401(k) match market in the US alone can set up Lendtable to process over $600 billion in 401(k) advances. That's billion, with a B. It's awesome to see the founders thinking about multiple ways to leverage cash advances, from ESPPs to 401(k)s. As the company matures, we'll see their potential rise as they look at other investment vehicles and other geographies.
  2. 😁 Competitive / Regulatory Risk?
    It's not immediately clear what prevents others from rising to Lendtable's position. Furthermore, companies may apply regulations around practices like Lendtable, making it harder to reclaim the capital once it has vested to the 401(k) balance. Lendtable will surely need to remain creative and agile to respond to different risk vectors.

🎤 Founder’s Corner

I believe that with the right nudge (and a little help from software) we can help people do the right thing and make money a bit less stressful.

- Mitchell Jones, Founder

🤝 Get involved with Lendtable