Congratulations to FTC II CEO Aaron Schumm and the entire Vestwell team on raising a $30m Series B financing led by Goldman Sachs PSI group, Point72 Ventures, and asset managers Allianz, BNY Mellon, Franklin Templeton, and Nationwide.
With over $7.7t in defined contribution accounts and over 700,000 small business in the US without retirement plans today, the digital retirement market represents a significant opportunity.
Complex regulation and fiduciary requirements around retirement plans result in offerings being, for the most part and understandably, an “advised” service, with over 80% of plans under $25m and over 90% of plans over $25-50m being implemented by employers with the help of a financial advisor.
Vestwell provides the all-in-one digital offering which modernizes and simplifies the channel-driven 401(k) and 403(b) markets.
We are in the early innings of a major shift in helping more Americans save and retire.
AirBNB became the largest hotel company in the world without owning a square foot of real estate. Uber is the largest personal transport firm without owning vehicles. Aaron Schumm might have a way to become the biggest force in 401(k) sales without having to pay a sales commission. There are more than 300,000 brokers and advisors out there, and relatively few of them sell or advise 401(k) plans.
Brooke Southall, RIA Biz
- Aaron Schumm is in the catbird seat after the biggest cat in the Wall Street jungle, Goldman Sachs, validates Vestwell by taking a big bite of a new $30 million funding round, RIABiz (link)
- Goldman backs retirement technology platform Vestwell, Reuters (link)
- Led by Goldman Sachs, Vestwell raises $30m, Wealth Management (link)