Vestwell raises $70 million

Vestwell announced it raised $70 million in Series C financing. Wells Fargo Strategic Capital and Fin Venture Capital co-led the round. Others participating in the round include Goldman Sachs, Morgan Stanley, Manulife, Point72, Nationwide Ventures, Allianz Life Ventures, Northwestern Mutual, FinTech Collective, Greenspring Associates, Primary Venture Partners, Teamworthy Ventures, F-Prime Capital, Industry Ventures, and Commerce Ventures.

Founded in 2016, Vestwell provides the underlying infrastructure for workplace savings and investing programs, such as 401(k) & 403(b) retirement plans. The firm’s API-based technology is designed to support a diverse ecosystem of financial services and fintech companies from registered investment advisors and payroll providers, to banks, broker-dealers, credit unions, insurers, asset managers, and more.

Since launching in late 2017, Vestwell experienced accelerated growth and market appetite and in 2020 the company saw plan growth of over 200%. Vestwell began working as a small plan provider to help power thousands of plans for household names including Morgan Stanley and Voya, while integrating and partnering with payroll providers such as Toast, QuickBooks Payroll, Gusto, Rippling, and Paylocity. The funding news comes on the heels of Vestwell’s personalized managed account partnership with Franklin Templeton, as well as its expansion into State IRA savings programs alongside BNY Mellon.

“There are more than 31 million small businesses in the U.S., and many of them have historically experienced challenges in providing retirement benefits to employees due to the administrative burden and high costs. Vestwell’s modern, automated, and user-friendly platform uniquely positions them to help small businesses provide workplace savings programs to more people. We’re excited to lead this investment and support Vestwell’s continued growth.” – Tom Richardson, head of Principal Technology Investments at Wells Fargo Strategic Capital.

“Vestwell was built for the financial services industry, and we’re backed by the financial services industry and the fintechs that work with them. From day one, our mission has been to create efficiency and accessibility in an industry hungry for change, and the fact that our peers are instilling their confidence in us to help define their future is both humbling and thrilling.” – Aaron Schumm, Founder and CEO of Vestwell.