Vestwell Raises $125 Million in Series D
Vestwell has raised $125 million in its Series D funding round, showcasing strong investor belief in its future. This significant equity financing highlights Vestwell as a major success in 2023 for fintech and SaaS in the US. Lightspeed Venture Partners led the round, with support from existing investors Fin Capital, Primary Venture Partners, and FinTech Collective, as well as new contributors Blue Owl and HarbourVest.
As part of the funding round, Justin Overdorff, a key fintech expert from Lightspeed, has joined Vestwell’s board of directors. Overdorff, with a background in SaaS and fintech, strongly focuses on product development, helping companies like Stripe and Alloy reshape their industries.
Justin Overdorff, Partner at Lightspeed Venture Partners, says:
“We are deeply impressed by Vestwell for its groundbreaking infrastructure-first approach to solving the systemic savings problem in the US. Their commitment to the thoughtful execution of its plans assures us of its stability and growth potential in the workplace savings and investment space. The platform is already transforming the financial futures of countless Americans, demonstrating not only a strong, healthy enterprise SaaS business model but also a clear, decade-long vision. They’re undeniably the dominant player and a true disruptor when it comes to the savings landscape – Lightspeed is excited to invest, and I’m proud to be joining the board and look forward to working closely alongside Aaron and his team to accelerate this company together.”
Logan Allin, who co-led Vestwell’s Series C, will continue as a board director, bringing valuable experience in entrepreneurial advisory from his work at SoFi Ventures and as the founder of Fin Capital, whose portfolio includes companies like Circle, DailyPay, Greenlight, and SumUp.
Logan Allin, Founder and Managing Partner at Fin Capital, says:
“Vestwell stands out as a pivotal player in the US financial sector thanks to its innovative approach to simplifying savings. It addresses a crucial need, showing immense potential in a market ripe for disruption. The unique blend of user-friendly technology with a breadth of robust financial tools gives it a significant edge. As they continue to scale, we know that they will redefine the savings and retirement landscape for Americans.”
Vestwell plans to use the new funding to keep growing and achieve its goal of providing savings solutions to more businesses and individuals nationwide, especially as demand is at an all-time high. This includes supporting small and emerging businesses that want better workplace savings programs and benefiting from recent regulatory changes like the SECURE 2.0 Act.
The funds will also help Vestwell focus on state-savings programs and create more initiatives for partners, employers, and savers using their platform. Additionally, it will strengthen Vestwell’s partnerships with leading financial institutions that use their product, helping them stay competitive, serve customers better, and address the larger issue of insufficient savings in America.
Aaron Schumm, CEO and founder of Vestwell, comments:
“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.”
