Vestwell, backed by Goldman, raises $125M in recent Series D

Vestwell, the savings and investment platform supported by Goldman Sachs, recently raised $125M in its latest funding round to broaden its product suite.

• Lead Investor: Lightspeed Venture Partners spearheaded this investment, propelling the New York-based fintech firm to a valuation of approximately $1B, sources close to the matter revealed.

• Expansion Goals: Founded by Aaron Schumm in 2016, Vestwell operates as a cloud-based record-keeping platform, simplifying the provision, management, and accessibility of workplace investment and savings programs for clients.

• Previous Backing: Goldman previously led Vestwell's series B funding in 2019 and remained involved in subsequent rounds, signifying its confidence in the startup's growth trajectory.

• Investors Involved: Apart from Lightspeed, existing backers such as Fin Capital, Primary Venture Partners, and FinTech Collective continued their support, joined by new investors Blue Owl and HarbourVest in the series D round.

• Profitability and IPO Plans: Schumm anticipates Vestwell becoming profitable within the next 18 months and an initial public offering as a viable path forward for the company.

• Future Ventures: With 350 employees, Vestwell intends to utilize the latest funding to strengthen its sales and engineering teams. Additionally, it aims to introduce new products, focusing on emergency and health savings accounts.

This significant investment underscores Vestwell's commitment to enhancing financial accessibility and streamlining workplace investment options, setting the stage for further innovation and market expansion.