Lendtable

Lendtable is a San Francisco-based fintech company founded in 2020 that provides cash advances to employees so they can afford to contribute to workplace retirement and equity programs, specifically 401(k) plans and employee stock purchase plans (ESPPs). The company frames the problem it addresses as workers who cannot simultaneously cover living expenses and set aside payroll contributions, and therefore forgo employer matching contributions.

According to the company's Y Combinator profile, one in four Americans do not receive their full 401(k) match, which it characterizes as roughly 25 million workers leaving about $24 billion in employer contributions unclaimed. Lendtable's advance is intended to cover a user's living expenses during the contribution period so the user can begin earning the employer match without putting money down up front.

Founding story

The company was founded in 2020 by Sheridan Clayborne and Mitchell Jones. Clayborne entered Northwestern University at age 15 as a computer science and economics major, later left to work on startups full time, and worked on private equity teams at JP Morgan and Goldman Sachs before joining Dropbox as a product manager. Jones is a Yale University graduate and former product manager at Facebook and Dropbox, with a stated focus on helping people save and invest through software-driven nudges.

Business model

Lendtable extends a cash advance to a worker rather than requiring an upfront payment from the user. Once the employee's contributions and employer match have vested, Lendtable takes a portion of the match money earned to cover its costs, aligning its compensation with the additional funds the worker receives.

Revenue is derived from a share of the vested employer match generated for the user, taken after vesting rather than as an upfront fee.

Traction

The company reported a team size of 20 on its Y Combinator profile and was listed with an active status.