If you still don’t quite understand the details of your 401(k), you’re not alone. Retirement planning is complicated, and for millennials who often bounce from job to job, it’s tough to keep track of it all.
Fintech startup Vestwell just closed an $8 million Series A funding round to help streamline the process and provide more transparency. The retirement planning platform uses a mix of modern technology and human advising to get employers and employees low fees and comprehensive plans.
“I have been a small business owner and experienced firsthand the difficulty in offering a 401(k) program to employees,” said founder and CEO Aaron Schumm in a statement. “I have also been entrenched in the financial technology and services for many years, long before it was affectionately referred to as fintech. We have taken our unique vantage point, deep understanding of the moving parts in financial services, and a background in helping businesses scale through technology to help redefine how a 401(k) plan should work. Pulling all of these pieces together can truly help close the retirement savings gap in America, while building our own business.”
Ben Malka, a partner at F-Prime Capital, will join Vestwell’s Board of Directors as part of the deal. The investment was led by F-Prime Capital Partners, with participation from Commerce Ventures, FinTech Collective and Primary Venture Partners, and will be used to grow the platform’s offerings and expand the team.
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