Human Interest, an automated provider of 401 (k) schemes for over 35,000 people, has raised $15.4m in its Series B.
The round was led by U.S. Venture Partners (USVP), with participation coming from previous Human Interest backers Wing VC, Uncork Capital, and Slow Ventures, among others.
Funds from the round will be used to accelerate the company’s mission of helping SMEs improve the financial future of their employees. The company hopes the capital will extend its ability to serve hundreds of thousands of users at tens of thousands of businesses and increase its hold to billions of dollars of assets.
Furthermore, the company hopes to grow its existing and new partnerships including with benefits brokers, financial advisors, and technology partners.
Human Interest offers a digital 401 (k) services which helps SMEs and employees improve their retirement plans. The service automates the necessary processes and can integrate with 15 payroll providers.
Its platform supports customisation, built-in investment advice, and automated daily administration, which includes recordkeeping and compliance.
Human Interest claims a third of US workers do not have a 401 (k), and many others have lost retirement savings due to confusion. The company aims to improve this and help employees take better control of their finances.
The company team is currently 70 and has grown 50 per cent year-over-year and will continue as the FinTech opens additional offices in coming months.
USVP general partner Steve Krausz said, “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.”
As part of the deal, Personal Capital vice chairman Mark Goines will join the Human Interest board of directors.
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