NEW YORK: Basic Capital, a retirement platform pioneering asset financing within 401(k) plans, has raised $25 million in a Series A funding round led by Forerunner and Lux Capital.
The round drew participation from existing backers SV Angel and Box Group, as well as financial icon Henry Kravis. New investors included HOF Capital and Inspired Capital.
Founded by Abdul Al-Asaad, Basic Capital is the first platform to offer financing and access to alternative investments within 401(k)s and IRAs. The company provides $4 of financing for every $1 contributed, multiplying retirement investing power fivefold.
“The engine of 401(k)s has not been significantly upgraded in 40 years,” Al-Asaad said. “This new investment, alongside policy changes in Washington, is a huge win for American workers.”
The funding will accelerate Basic Capital’s expansion, enabling broader adoption among employers and scaling its individual IRA offerings. The company aims to serve significantly more retirement savers across both product lines.
“Basic Capital has developed a novel solution to help everyday Americans finance investment, rather than consumption,” said Peter Hebert, Co-Founder & Partner at Lux Capital.
Basic Capital’s approach reflects a growing movement to modernize retirement infrastructure and democratize access to wealth-building tools long reserved for institutional investors.