Friday, August 22, 2014

Li Ka-Shing invests $6.5m in Israeli start-up FeeX

FeeX, a service that helps users find and avoid hidden fees in their retirement accounts, announced yesterday 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. 

In March 2014, FeeX launched in the U.S. to help Americans assess and minimize the amount of money spent on financial fees each year — estimated at $600 billion. Currently, FeeX has more than 60,000 users, has surpassed $1 billion in assets under protection and has identified more than $277 million in potential savings for its customers. 

According to FeeX, 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 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,” said Jason Wong, Director at Horizons Ventures. “Their vision is even bolder — to democratize and demystify all financial information, shining light on all fees inhibiting us from attaining the best financial futures possible.”

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