NEW YORK — Vestwell, which operates an employer and individual savings platform, has raised a Series D round totaling $125 million. The round was led by Lightspeed Venture Partners. Existing investors Fin Capital, Primary Venture Partners, and FinTech Collective, and newcomers Blue Owl and HarbourVest, also participated.
As part of the round, Lightspeed’s lead fintech Partner, Justin Overdorff, has joined Vestwell’s board of directors. With a background in business development, operations, and VC across SaaS and fintech, Overdorff’s product-first mindset has seen him help businesses, including Stripe and Alloy, to reshape their industries. Logan Allin will remain a board director since co-leading Vestwell’s Series C. He brings deep expertise in entrepreneurial advisory, having worked closely with scaling fintechs in his role at SoFi Ventures before founding Fin Capital, whose portfolio companies include Circle, DailyPay, Greenlight, and SumUp.
Vestwell plans to use the new funding to continue its rapid expansion and fulfill its mission to bring savings solutions to more businesses and individuals across the country, as demand reaches unprecedented levels. In particular, the move will support small and emerging businesses that have benefited from regulatory tailwinds (such as the SECURE 2.0 Act) and are now increasingly seeking workplace savings programs that allow them to escape the high fees and heavy administrative burden of legacy providers in order to offer employees solutions that are fit for purpose.
The capital will also be used to expand Vestwell’s focus on state-savings program initiatives while developing other savings program initiatives for the partners, employers, and savers utilizing Vestwell. Further, it will build on the firm’s proven track record in catalyzing the growth initiatives of the leading financial institutions that white label Vestwell’s product, empowering them to remain competitive, better serve their customers, and contribute to closing the American savings gap on a large scale.
Aaron Schumm, CEO and founder of Vestwell, said:
“We’re exhilarated to announce our Series D round – our growth has been truly exceptional, and we’re honored to be working with an array of such esteemed investors and partners. We’re also excited to have Justin and Logan on our board as we partner to bring savings to a new level. With such great people and teams around us, the future continues to look very bright for Vestwell.
“We weren’t expecting Lightspeed to proactively approach us with the offer to lead our next funding round, given we had not planned to raise any capital. But soon after they did, our mutual conviction – that this industry is crying out for innovation and that Vestwell is the one to deliver it – became clear. We’re already working exceptionally well together, and I’m very excited to see what we achieve together as we expand and accelerate the business into its next phase.”
Founded in 2016, the New York City-based fintech company is transforming access to essential financial wellness and savings programs to close the American savings gap. As an extension of its partners, Vestwell enables a suite of programs, including retirement, health, and education, such as 401(k), 403(b), IRA, 529 Education, ABLE disability, and Emergency Savings programs. Today, Vestwell enables over 300,000 businesses, and well over a million active savers, with nearly $30 billion in assets saved in all 50 states.
