SAN FRANCISCO — Human Interest, a 401(k) provider for small and mid-sized businesses, announced a hefty $55 million capstone to its Series C funding. Led by Glynn Capital, an existing investor, with participation by new investor NewView Capital, the additional financing brings the round to $105 million and Human Interest’s total funding to $136.7 million.
Founded in 2015, Human Interest has become a leading 401(k) provider partnering with over 400 brokers, financial advisors and payroll companies, offering a full-service alternative for small and medium-sized businesses. Human Interest plans to increase its partner base to over 1,000 partners by the end of 2021.
Human Interest reports it has experienced 10X growth in monthly customer acquisition over the past 18 months. Human Interest also unveiled a new brand, eliminated more than twenty 401(k) transaction fees and launched new offerings, Complete and Concierge, to simplify retirement plan administration and make retirement savings accessible to people in all lines of work.
“If we want to close America’s $28T retirement savings gap, then we have to make it easier for small and medium-sized businesses to offer retirement savings plans, and we have to make saving automatic for employees. With every step, we’re getting closer to that vision,” said Human Interest CEO Jeff Schneble.
Human Interest will use the new funding to double the size of its engineering team and scale its technology platform and operations to help hundreds of thousands of employers with millions of employees—who previously had no access to 401(k)s—build their financial futures.
“The big incumbents haven’t figured out how to make plans affordable and accessible for smaller companies,” Schneble said. “We knew that to make a permanent dent in this country’s retirement crisis, we had to do something different.”
That ‘something different,’ Schneble said, was in-house, end-to-end technology that has transformed the economics of Human Interest’s business, enabling it to double its margins over the past six months while eliminating transaction fees for plan administrators and participants.
“We rethought the 401(k) model from the ground up and built a unified technology platform that allowed us to deliver a complete solution to SMBs at a fraction of the price charged by legacy providers,” Schneble said. “We passed this savings on to our customers, allowing us to deliver a user experience, technology platform, and brand that differentiates us and meets a tremendous unmet need for both employers and employees.”
“Those efficiencies explain why Human Interest is enrolling more plans per month than the largest incumbent,” said Glynn Capital principal Charlie Friedland. “We believe that Human Interest’s platform gives it a structural advantage over every other 401(k) provider in the SMB market,” Friedland said. “Where competitors are burning capital with every new customer, Human Interest has a clear path to long-term success.”