Digital retirement platform provider Vestwell got a major shot in the arm with $30 million in Series B financing, it announced Tuesday.
Goldman Sachs Principal Strategic Investments (PSI) led the round, working with Goldman Sachs’ Consumer and Investment Management Division (CIMD), joined by Point72 Ventures “and a host of other strategic retirement-focused financial services providers including the venture capital arm of Nationwide, Allianz Life Ventures, BNY Mellon, and Franklin Templeton.”
The round also included participation from Series A and Series Seed investors, F-Prime Capital, FinTech Collective, Primary Venture Partners, and Commerce Ventures.
Vestwell claims to be the first digital retirement platform built in the space “for the financial advisor, helping scale plan sponsor and participant relationships to a new level.”
“With its innovative technology, streamlined administration, fiduciary oversight, and modern interface, Vestwell has reimagined the 401k and 403b industry for the better,” according to the company.
Strategic partners
In the past year, it says client growth increased tenfold and the company has implemented strategic alliances with BNY Mellon, Allianz, Namely, Dimensional Fund Advisors, OnPay and Riskalyze, among others soon to be announced.
“I feel Vestwell’s momentum on a daily basis, so it’s incredibly humbling to have so many of the industry’s leading players see the value in what we’re building and share our vision of what lies ahead,” Aaron Schumm, founder and CEO of Vestwell, said in a statement. “We’re elated to align ourselves with retirement industry experts who are not only investing capital into Vestwell, but who are also investing time and resources into ensuring our success.”
“The market impact we’ve seen from Vestwell in the two short years since leading the seed investment in them is remarkable,” added Brooks Gibbins, Co-Founder and Managing Partner of FinTech Collective. “Participants, employers, and channel partners have all validated Vestwell’s approach, and we’re thrilled to continue supporting industry change alongside them.”