FeeX, a service that helps users find and avoid hidden fees in their retirement accounts, announced today that it has raised $6.5 million in Series B funding. The round was led by Horizons Ventures, with participation by returning investor Blumberg Capital. This brings FeeX’s total funding so far to $9.6 million.
Founded in August 2012 by Yoav Zurel, David Weisz, and Uri Levine (the founder of navigation app Waze, which was acquired by Google for $966 million last year), FeeX uses algorithms to identify and reduce hidden advisory, investment, and expense ratio fees in investment and retirement accounts, including IRA, 401(k), 403(b), 457, and brokerage accounts. The startup claims that fees can claim a third or more of the funds in a retirement savings plan and that the average American household ends up paying $155,000 in hidden 401(k) fees over the lifetime of the account.
FeeX says that it currently has more than 60,000 users, who have more than $1 billion in assets, and has found $277 million in hidden fees. It launched in the U.S. in March 2014.
In a statement, Horizons Ventures director Jason Wong said “FeeX has developed an objective solution that is disrupting the asymmetry of information that prevents ordinary consumers from easily understanding the true costs of their investments.”
Illustration: Bryce DurbinFeatured Image: Bryce Durbin