Human Interest, a startup that offers retirement programs, has raised $200 million in a Series D fund round, valuing the company at $1 billion.
The investment round was led by TPG’s The Rise Fund. SoftBank, NewView Capital, Wing VC, Crosslink Capital, Slow Ventures, and other investors also participated. The funding round comes after its $105 million Series C in January.
Early this year, TPG’s Rise Fund had contacted Human Interest for investing in the 401(k) market as it wants to enter this untapped market.
According to John Flynn, a partner at TPG said, “The historical problem has been that the systems for 401(k)s are complicated and highly regulated and there is not a lot of innovation.”
Founded by Roger Lee, who launched Human Interest after realizing how difficult the process was with his adtech startup Thunder.
While traditional plans are oversized and complicated, the San Francisco-based startup looks to build retirement plans that give more people access to retirement savings and investing plans by removing the potential roadblocks from the process.
The company provides 401(k) programs as a package to employers with more transparent pricing, helping companies be able to avoid a potentially lengthy, and expensive, process if working with a broker.
In addition, the platform is also linked to payroll providers and handles onboarding as well for each client’s employees to enter with an opt-in or out system.
Although Human Interest originally targeted small and medium-sized businesses, larger organizations and companies have been drawn to its platform. Jeff Schneble, CEO of Human Interest predicts its revenue could exceed $100 million within 24 months.
“The end goal is to really see if we can make a meaningful dent in the retirement crisis,” Schneble comments, “We have around 100,000 users and so we have a long way to go. It’s a multi-decade journey.”
Human Interest currently has more than 100,000 users and is looking to an Initial Public Offering within the next few years after hitting more than $200 million in revenue.