Less than six months after raising $55 million in a Series C round of funding, SMB 401(k) provider Human Interest today announced it has raised $200 million in a round that propels it to unicorn status.
The Rise Fund, TPG’s global impact investing platform, led the round and was joined by SoftBank Vision Fund 2. The financing included participation from new investor Crosslink Capital and existing backers NewView Capital, Glynn Capital, U.S. Venture Partners, Wing Venture Capital, Uncork Capital, Slow Capital, Susa Ventures and others.
When it comes to small and medium-sized businesses (SMBs), it’s not always as easy to offer 401(k)s as a benefit. And owners of those businesses often struggle with being able to save for retirement themselves. A startup out to change that has just raised a new round of funding to help it advance on its goal.
Human Interest, a retirement plan provider for SMBs, announced today it has closed a $40 million Series C round just months after raising a $15.4 million Series B.
Oberndorf Enterprises LLC, a family-owned office led by William Oberndorf, led the latest round, which brings Human Interest’s total debt and (mostly) equity raised to just over $75 million since its April 2015 inception. Combined, the last two rounds total more than three times the capital Human Interest raised during its first four years of operation, the company said.
Human Interest — as its former name Captain401 implied — focuses on creating an easy system for small businesses to begin offering a 401(k) to employees. It’s geared toward companies trying to get it up-and-running for the first time, as when companies start to mature benefits like that quickly become table stakes, lest they lose those employees to competitors with more robust benefits. It’s also important to get those plans in place early, as employees likely want to begin securing their finances early on.