Backer

Backer operates a consumer financial service that helps families open, connect and manage 529 education savings plans and invite family and friends to contribute to them. Parents can enroll in a 529 plan through the platform in about five minutes with a paperless setup, or link an existing 529 plan; the company states it works with most 529 plans and that account holders can open or link unlimited plans. Each fund receives a custom shareable link and gifting page so relatives and friends — described by the company as "backers" — can make one-time or recurring contributions, with milestone reminders sent around birthdays and holidays. Contributions can be funded via linked bank account, credit or debit card, or digital wallets such as Apple Pay and Google Pay.

The product includes automated contributions, a fund dashboard with real-time projected savings, a savings calculator based on an 8% per year projected growth assumption, and iOS and Android mobile apps alongside the website. Backer positions 529 plans as tax-free vehicles usable for a broad range of education expenses including college tuition, books and supplies, housing, K-12 tuition, bootcamps and apprenticeships. The company also publishes educational material on 529 plans, noting there are over 100 different plans in the U.S. and that it evaluates them to recommend a suitable plan for each family. Backer describes itself as an SEC-registered investment adviser with a fiduciary duty to clients, and states it uses browser encryption, secure servers monitored continuously and identity verification services to protect customer data. If a customer leaves, the company says the 529 plan can be retained or rolled over to another provider.

Founding story

Backer states it began from the premise that supporting a child financially should be simple for parents and for relatives and family friends alike, and that tax-free 529 investing had largely been used by wealthier families.

Business model

Backer charges families directly rather than taking a percentage of assets under management. The Backer Basic tier is free to register with no subscription fee but applies a $1.99 platform fee per contribution or gift; Backer Pro costs $29.99 per year and removes platform fees on contributions the member makes to their own or other funds, and adds priority customer support. Gifters pay $1.99 per transaction plus any applicable card processing fees. Both plans include 529 investment advice, gifting pages, automated contributions and the mobile apps.

Flat-fee consumer pricing: per-contribution platform fees of $1.99 and an optional $29.99 annual Backer Pro membership, explicitly positioned as an alternative to advisers charging a percentage of assets.

Traction

Company-reported figures cite 250,000+ people saving with Backer, more than $70 million saved for college, over 250,000 college savings gifts given to date, 200,000 parents and kids on the platform, and $500 million in future student debt avoided.