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401k Provider Human Interest Raises $15.4 Million Series B

    

SAN FRANCISCO, CA, August, 5, 2019 -- Human Interest, the fast-growing, affordable, automated 401k provider now serving more than 35,000 people who manage their retirement savings in the platform, announced today that it has raised $15.4 million. The Series B round is led by U.S. Venture Partners, with participation from existing investors Wing VC, Uncork Capital, and Slow Ventures, among others.

The financial services startup will use the new investment to accelerate the company's mission of empowering small and medium-sized employers and to help their employees attain a secure financial future. "We look for companies that have the potential to create large markets by taking advantage of disruptions and societal changes. Human Interest is bringing retirement benefits to over 40 million working Americans that currently do not have them. And, this is at a time when there's an increasing understanding that personal savings is a key component of any long-term planning," said Steve Krausz, General Partner at USVP and Human Interest board member.

With the new funding, Human Interest will dramatically expand its reach: Growing to serve hundreds of thousands of users at tens of thousands of businesses and increasing to billions of dollars of assets under management. Funding will also accelerate the growth of existing and new partnerships, including those with benefits brokers, financial advisors, and technology partners. Now roughly 70 employees, the team has grown 50% year-over-year and will continue to grow as the company considers opening new offices in the next 12 months.

"We are fortunate to be in a market that touches almost half of the U.S. workforce, and where we've seen extremely strong product-market fit. We are focused on accelerating distribution and reaching millions of working Americans as quickly as possible," said Jeff Schneble, CEO.

In conjunction with the round, Mark Goines, Vice Chairman of Personal Capital, will join Human Interest's board. Mark brings over 35 years of experience in Financial Services and Technology, including prior roles running Intuit's consumer business and serving as the Vice President of Product at Schwab. "Since 401k plans became popular in the 1980s, they have predominantly benefited employees at larger companies," said Mark Goines. "Small employers are now, more than ever, including retirement plans as a part of their core benefits, and Human Interest is perfectly positioned to meet this demand."

Human Interest offers the first truly digital 401k equipped with robust, user-friendly features that small and medium-sized businesses (and their employees) want in a retirement savings plan: transparent, affordable pricing; seamless integration with more than 15 leading payroll providers; customizable, built-in investment advising (provided through Human Interest Advisors); and automated day-to-day administration, including compliance and recordkeeping services.

Steve Krausz of USVP added, "We also look for businesses with a clear technical moat, and Human Interest has built the technology stack that creates the modern digital 401k experience. This encompasses a complex backend infrastructure, such as recordkeeping, compliance, and automated administration that enables them to cost-effectively service customers at the SMB scale with the highest level of satisfaction."

One-third of workers in the private sector do not have access to a 401k, and thousands of others have lost out on retirement savings due to high, predatory fees or confusing language from older, traditional 401k providers. In contrast, Human Interest prides itself in operating as a fiduciary, meaning that customers' best interests come first. Unlike other 401k providers, Human Interest does not receive kickbacks from any of the investments they recommend. Additionally, Human Interest's customers are benefitting from access to high quality retirement savings plans: its customers see a 70% participation rate among eligible employees, with participation rising to 93% for customers that offer automatic enrollment and an employer match.

"We've been encouraged by the range of customers across the country that have flocked to Human Interest, from small businesses that have never before offered a retirement savings plan, to medium-sized companies looking to switch from an expensive, traditional 401k provider," said Roger Lee, Co-founder and Chief Product Officer. "We're called Human Interest because we're human-centered, and we want to work with other businesses who are, too," said Lee.

Increasingly, America's business leaders are seeking to make meaningful investments in their employees, and their employees' financial wellness is top of mind. Three in five of employees' top sources of financial stress are related to retirement. Human Interest seeks to help Americans, especially those at small and medium-sized businesses, shore up for retirement and reduce their risk of future financial insecurity.

About Human Interest

Headquartered in San Francisco, CA, Human Interest offers online, affordable, automated, and user-friendly 401ks for small and medium-sized businesses with customizable features and built-in investment advising for employees (provided by Human Interest Advisors). Human Interest is proud to serve more than 35,000 employees at companies in every industry across the United States, including companies who are setting up their first 401k as we well as those who are changing providers. The company, founded in 2015 out of the Y Combinator summer batch, proudly offers transparent pricing and operates as a fiduciary, which means they put their customers' best interest first. For more information, please visit https://humaninterest.com/

About U.S. Venture Partners

U.S. Venture Partners (USVP) is a leading Silicon Valley venture capital firm, partnering with entrepreneurs to transform their ideas into world-changing companies. USVP has invested in over 400 companies spanning three decades, including: Box, Castlight Health, Check Point Software, Concur, GoPro, Guidewire Software, Hellosign, Heartflow, HotelTonight, Imperva, InsideSales.com, Inspire Medical, Intersect ENT, Omada Health, Prevoty, SanDisk, Sun Microsystems, Trunk Club, Threatmetrix, Trusteer, Yammer, and Zerto. USVP focuses on early-stage start-ups that transform cybersecurity, enterprise software, consumer mobile and e-commerce, and healthcare. The USVP team consists of former entrepreneurs, technologists, corporate executives, and financial professionals who assist with strategy, scaling, team building, product development, and business development. USVP is based in Menlo Park, California. More information can be found at http://www.usvp.com

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