Human Interest raises $200M at a $1B valuation, plans for an IPO
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.
Over the past year, the San Francisco-based company has raised $305 million. With the latest financing, it has now raised a total of $336.7 million since its 2015 inception.
The company admittedly has an IPO in its sights, as evidenced by the appointment of former Yodlee CFO Mike Armsby to the role of CFO at Human Interest.
Demand for 401(k)s by SMBs appears to be at an all-time high, with Human Interest reporting that its sales tripled over the last year. The company has also more than doubled its headcount over the last 12 months to 350 employees.
The startup said it is seeing strong adoption in verticals that have not previously had retirement benefits, including construction, retail, manufacturing, restaurants, nonprofits, and hospitality. For example, over the past three quarters, Human Interest has seen 4.5x customer growth in the restaurant sector. Since the start of the pandemic, Human Interest has experienced 2x higher enrollment growth among (Read more...)