Venture Capital: Human Interest, Which Facilitates 401 (k) Plans For Small Businesses, Turns Unicorn
Human Interest raised $200 million in its latest Series D funding round.
Human Interest, which offers affordable, full-service 401 (k) retirement plans to small and medium businesses, announced today its raise of $200 million in a round led by TPG’s The Rise Fund and joined by SoftBank Vision Fund 2. Existing investors including NewView Capital and Glynn Capital also participated in the round, alongside new investor Crosslink Capital. Human Interest vaulted to unicorn status after the financing valued it at $1 billion. (Yahoo Finance)
The firm was founded in 2015, and has raised $305 million over the past year. The company raised $105 million ina Series C round in January. All told, it has raised $336.7 million since its inception.
401 (k) – So far unwieldy and expensive
John Flynn, a partner at TPG told Forbes that they’d been waiting for an opportunity to invest in the 401(k) market. “The need here is clearly huge,” Flynn says. “The historical problem has been that the systems for 401(k)s are complicated and highly regulated and there is not a lot of innovation.”
“Promoting financial health is a core investment pillar for The Rise Fund. Human Interest delivers one of the most compelling solutions to the persistent problem that roughly half of Americans will not have enough savings when they reach retirement age,” said Maya Chorengel, co-managing partner at The Rise Fund, in a statement. “Despite recent legislation, primarily at the state level, legacy programs have not, to date, produced the same participant outcomes as Human Interest.”
Jeff Schneble, CEO of the startup, says revenue is in the “tens of millions,” and likely to be north of $100 million within two years. It already boasts of 100,000 users. Headcount, currently at 350, doubled in the past year.
The startup intends to issue an IPO once it reaches $200 million in revenue. It has already named Mike Armsby as its CFO.
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