Low-cost 401(k)s for small businesses continue to be in demand despite tough economic circumstances. This week, Guideline, a San Mateo, Calif.-based 401(k) provider for small businesses, raised $80 million in funding at a valuation of $500M.

Why should we care?
While many small businesses struggle during the pandemic, at least one 401(k) provider that caters to them is experiencing growth. Retirement plans are a pain point for small business owners because plans impose high fees and administration costs. In recent years, however, startups have stepped up to the plate with lower costs and better customer experiences fostered by technology. One of those providers is Guideline, a five-year-old company that offers small business 401(k)s. Guideline, which now has $2.5B in assets under management, reports June sales are up 65% year-over-year, with 13,000 small business customers. According to CEO Kevin Busque, clients are saving money through remote work and are making up for that by offering 401(k) benefits. Guideline faces competition from other digital providers, including Betterment, ForUsAll, and Human Interest.