Total amount raised
$237.5 Millions
Latest funding date
Location
Vestwell has successfully raised significant funding over multiple rounds, with the latest being a Series D. The company is backed by 25 investors, including Fin Capital and FinTech Collective.
Vestwell offers a range of workplace savings solutions, such as 401(k) plans, IRAs, and 529 education savings accounts. Keep reading to explore the intricacies of Vestwell's fundraising journey and the investors backing this innovative platform.
What Is Vestwell?
Vestwell, founded in 2016 by Aaron Schumm, is headquartered in New York, New York. The company specializes in providing a digital savings platform designed to create retirement plans for employees. With a workforce of 251-500 employees, Vestwell offers various automated retirement investing options and other defined contributions to help companies and their employees manage retirement savings efficiently.
How Much Funding Has Vestwell Raised?
- Seed Round
- Amount Raised: $4.5M
- Date: September 2016
- Lead Investors: FinTech Collective
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To launch the platform and begin developing retirement savings solutions.
- Series A
- Amount Raised: $8M
- Date: October 2017
- Lead Investors: F-Prime Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand product offerings and scale operations.
- Series B
- Amount Raised: $30M
- Date: April 2019
- Lead Investors: GS Growth
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance technology and support growth in customer base.
- Series C
- Amount Raised: $70M
- Date: July 2021
- Lead Investors: Fin Capital, Wells Fargo Strategic Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and expand market reach.
- Series D
- Amount Raised: $125M
- Date: December 2023
- Lead Investors: Lightspeed Venture Partners
- Valuation at Round: Approximately $1 billion
- Motivation Behind the Round: To continue rapid expansion, focus on state-savings program initiatives, and develop new savings programs.
Total Amount Raised: $237.5M. Current Valuation: Approximately $1 billion.
Key Investors
- Lightspeed Venture Partners
- Details: Lightspeed Venture Partners is a venture capital firm that focuses on early-stage investments in the enterprise, consumer, and health sectors. They have a strong track record of accelerating disruptive innovations and trends.
- Investment Focus Areas: Technology, enterprise, consumer, health sectors.
- Notable Investments: Snapchat, Affirm, MuleSoft.
- Fin Capital
- Details: Fin Capital is a venture capital firm that invests in financial technology companies. They are known for their deep expertise in entrepreneurial advisory and scaling fintechs.
- Investment Focus Areas: Fintech, financial services.
- Notable Investments: Circle, DailyPay, Greenlight.
- Wells Fargo Strategic Capital
- Details: Wells Fargo Strategic Capital is the venture capital arm of Wells Fargo, investing in innovative companies. They provide capital to support growth and strategic initiatives.
- Investment Focus Areas: Innovative companies across various sectors.
- Notable Investments: Not publicly disclosed.
- GS Growth
- Details: GS Growth is a growth equity firm that invests in high-growth companies. They focus on providing capital to support expansion and scaling.
- Investment Focus Areas: High-growth companies in various sectors.
- Notable Investments: Not publicly disclosed.
- F-Prime Capital
- Details: F-Prime Capital is a global venture capital firm investing in healthcare and technology. They have a strong presence in both sectors, supporting innovative solutions and advancements.
- Investment Focus Areas: Healthcare, technology.
- Notable Investments: Not publicly disclosed.
What's Next for Vestwell?
Vestwell's future is brimming with opportunities, driven by its recent $125 million Series D funding. The company plans to expand its state-savings programs and develop new savings initiatives, leveraging its platform that already serves over 300,000 businesses and manages nearly $30 billion in assets. This expansion is poised to significantly increase its market presence and attract more clients.
Future fundraising opportunities appear promising, with strong backing from high-profile investors like Lightspeed Venture Partners and Fin Capital. The company's growth trajectory and market potential make it an attractive candidate for additional funding rounds or even an IPO. However, Vestwell will need to navigate challenges such as competition from other fintech companies and regulatory compliance issues.
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