Vestwell, the US-based creator of a digital management platform for retirement plans, has secured $30m in a series B round featuring Allianz Life Ventures, a corporate venturing subsidiary of insurance firm Allianz.
The round was led by investment bank Goldman Sachs’ Principal Strategic Investments unit and included the bank’s Consumer and Investment Management Division as well as financial services firm BNY Mellon and building society Nationwide, which invested through its venture capital arm.
F-Prime Capital, a subsidiary of investment and financial services group Fidelity, also took part, as did Point72 Ventures, Primary Venture Partners, Franklin Templeton, FinTech Collective and Commerce Ventures.
Vestwell has created software that is used to handle the pension process, allowing financial advisors to modernise their businesses, employers to customise and more easily manage their retirement plans, and employees to more easily enrol and monitor the plan’s investments.
Aaron Schumm, Vestwell’s founder and chief executive, said: “I feel Vestwell’s momentum on a daily basis, so it is 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.
“We are 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 funding came after Vestwell raised $8m in an October 2017 series A round led by F-Prime Capital and backed by Primary Venture Partners, FinTech Collective and Commerce Ventures. The same four investors had provided $4.5m of seed capital for the company in 2016.
