Planning tool Pillar is being acquired
Let’s back up.
Pillar launched in 2019 to help people manage, pay off, and save money on their student loans. It received a $5.5 million investment led by Kleiner Perkins with other investors participating. Its platform aggregated a borrower’s student loans and later analyzed the loans, income, and spending to determine the fastest way to pay down the debt. It also automated the payment and management process. The service was “completely free” with Pillar planning to introduce premium features down the road.
A year later, COVID-19 happened. “Covid-19 hit and Congress suspended student loan payments and reduced interest rates to 0%. This relief, though necessary for millions of borrowers during trying times, effectively shut down the market we operated in.” And Pillar’s original product was no longer relevant so it pivoted to offer a planning tool to make it easier for people to organize and store their family’s most important information in a secure online dashboard that they can share with other trusted family members. It also picked up an additional $1.5 million from Kleiner Perkins, bringing its total funding to $7 million. “You can sign up for Pillar for $9.99 per month when paying annually ($119.88 per year) or $14.99 per month when paying monthly. All users will have access to resources and exclusive guides to make sure your loved one is protected from common scams and elder abuse.”
Here’s the gist of note from CEO and founder Michael Bloch:
“We’re excited to announce that Pillar is being acquired! We’ll be closing our virtual doors on April 14th, 2021. As of this date, our web app and dashboard will no longer be accessible.
We started Pillar in 2018 with the goal to help consumers get out of student loan debt. We built one of the most popular student loan apps in the US, but 2020 threw us a curveball when the government shut down the student loan market due to Covid-19. As a result, we pivoted to our new business, Pillar Life, to help people better care for their loved ones.
Our team will be joining a new company and going back to our roots. We’ll be building products that help people achieve financial well-being. We can’t say where we’re headed just yet, but we’ll have more to share very soon.”
Bottom Line: Don’t seek longevity with an end-of-life tool and this isn’t the kind of list you want to be on.
