Vestwell Raises $125M for Workplace Savings Platform
Vestwell, a New York-based employer and individual savings platform, has raised $125 million in Series D funding led by Lightspeed Venture Partners.
The round also saw participation from existing investors Fin Capital, Primary Venture Partners and FinTech Collective, as well as new investors Blue Owl and HarbourVest.
Although the company did not announce its valuation, Bloomberg reported that the latest round brings Vestwell’s valuation to roughly $1 billion.
The fundraising comes more than two years after the company raised $70 million in a Series C round, bringing the total cash raised to more than $235 million.
Vestwell, a cloud-based digital recordkeeping platform for workplace savings and investing programs such as 401(k) and 403(b) plans, was founded in 2016 and is supported by Manulife, Nationwide Ventures, Allianz Life Ventures, and Northwestern Mutual. It claims to serve approximately 50,000 businesses and more than one million savers, managing around $29 billion in assets.
As part of the funding round, Justin Overdorff, a Lightspeed partner, has joined Vestwell’s board of directors, and Logan Allin, managing partner and founder of Fin Cap, will remain a board director since co-leading Vestwell’s Series C funding round.
“We’re exhilarated to announce our Series D round—our growth has been truly exceptional, and we’re honored to be working with an array of such esteemed investors and partners,” Aaron Schumm, CEO and founder of Vestwell, said. “We’re also excited to have Justin and Logan on our board as we partner to bring savings to a new level.”
JPMorgan Chase & Co. teamed with Vestwell in May 2023 to provide enhanced assistance for the financial firm’s small business retirement plan offering, the Everyday 401(k).
Carson Group, a registered investment advisory firm, partnered with Vestwell in January 2023 to provide a defined contribution retirement option for advisors. The two companies collaborate on a program called Carson Complete 401(k), which is aimed to assist Carson-affiliated advisors in adding or scaling small and medium retirement plan practices.