Human Interest has successfully raised $136.4 million over six funding rounds, achieving a valuation of over $1 billion. The company offers affordable, full-service 401(k) plans for small and medium-sized businesses, aiming to make retirement plans accessible to all working Americans.
Keep reading to explore the intricacies of Human Interest's fundraising journey and the investors backing this innovative platform.
What Is Human Interest?
Human Interest, founded by Paul Sawaya and Roger Lee, is based in San Francisco. The company aims to make 401(k) plans accessible and affordable for small and medium-sized businesses. With a workforce of 501-1000 employees, Human Interest has built end-to-end technology to solve administrative and compliance issues for SMBs.
How Much Funding Has Human Interest Raised?
- Series A Round
- Amount Raised: $3.5 million
- Date: April 2016
- Lead Investors: Uncork Capital
- Motivation Behind the Round: To build the initial product and gain early traction in the market.
- Series B Round
- Amount Raised: $15.4 million
- Date: August 5, 2019
- Lead Investors: U.S. Venture Partners (USVP)
- Motivation Behind the Round: To accelerate the delivery of innovative retirement savings plans and expand the company's reach.
- Series C Round
- Amount Raised: $40 million
- Date: March 11, 2020
- Lead Investors: Oberndorf Enterprises LLC
- Valuation at Round: "In the hundreds of millions now" (~estimated)
- Motivation Behind the Round: To extend the company's reach, enhance product development, and expand the team.
- Series C Extension
- Amount Raised: $10 million
- Date: May 20, 2020
- Lead Investors: Glynn Capital
- Motivation Behind the Round: Fueled by strong customer demand and the need to expand the engineering team.
- Series D Round
- Amount Raised: $105 million
- Date: August 2021
- Lead Investors: TPG's The Rise Fund
- Valuation at Round: Over $1 billion
- Motivation Behind the Round: To scale operations and further develop the platform to meet growing demand.
Total Amount Raised: $174.9 million
Current Valuation: Over $1 billion
Key Investors
- Glynn Capital
- Details: Glynn Capital is a venture capital firm that focuses on long-term investments in technology companies. They led the $10 million extension to Human Interest's Series C round.
- Investment Focus Areas: Technology, healthcare, financial services.
- Notable Investments: Facebook, LinkedIn, Palantir.
- Oberndorf Enterprises LLC
- Details: Oberndorf Enterprises LLC is a family-owned investment office led by William Oberndorf. They led the $40 million Series C funding round for Human Interest.
- Investment Focus Areas: Education, healthcare, financial services.
- Notable Investments: KIPP Foundation, Teach for America, NewSchools Venture Fund.
- U.S. Venture Partners (USVP)
- Details: USVP is a leading Silicon Valley venture capital firm with over 400 investments across three decades. They led the $15.4 million Series B funding round for Human Interest.
- Investment Focus Areas: Cybersecurity, enterprise software, healthcare.
- Notable Investments: Box, GoPro, HotelTonight.
- Wing VC
- Details: Wing VC is a venture capital firm founded by partners from Sequoia and Accel. They led an $11 million funding round for Human Interest.
- Investment Focus Areas: Enterprise technology, consumer technology.
- Notable Investments: Snowflake, Cohesity, Shape Security.
- Uncork Capital
- Details: Uncork Capital is an early-stage venture capital firm that focuses on seed and pre-seed investments. They led the $3.5 million Series A round for Human Interest.
- Investment Focus Areas: SaaS, marketplaces, consumer products.
- Notable Investments: Postmates, Eventbrite, SendGrid.
What's Next for Human Interest?
Human Interest stands at the cusp of a significant opportunity, driven by the increasing demand for affordable retirement benefits among small and medium-sized businesses. With over 2,200 companies and more than 100,000 employees already on board, the potential market includes millions of SMBs in the U.S. that currently do not offer retirement benefits. This vast, underserved market presents a substantial growth opportunity for the company.
Future fundraising efforts are likely to be bolstered by the strong customer demand and the company's impressive growth trajectory. The recent $105 million Series D round, led by TPG's The Rise Fund, underscores investor confidence. As Human Interest continues to expand its product offerings and market reach, additional funding rounds or even an IPO could be on the horizon.
However, the path forward is not without challenges. The company must navigate a competitive landscape, ensuring the scalability and reliability of its digital platform while maintaining high customer satisfaction. Economic uncertainties and market fluctuations also pose potential hurdles. Yet, with a clear mission and a robust growth strategy, Human Interest is well-positioned to capitalize on the opportunities ahead.
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