Pitch Deck Vestwell raised $70 million from Wells Fargo

  • Vestwell helps companies offer employee savings plans.
  • It first started with 401(k) plans, but expanded to 403(b), IRAs, and 529 college savings plans.
  • The company raised a $70 million Series C round led by Wells Fargo with contributions from other banks.

Vestwell, a startup that provides 401(k) services to small and medium-sized businesses, aims to make it easier for those businesses to start offering 401(k)s and other workplace savings plans to their employees.

One of the reasons small businesses typically struggle to set up workplace savings programs is because of high fees from traditional providers like ADP and Vanguard, said Vestwell founder and CEO, Aaron Schumm.

“There are 32 million small and medium businesses but less than 1 million workplace savings programs, so there’s definitely a savings gap in the country,” Schumm said. “But it’s hard to put some of these programs in place in a way that really helps people.”

Vestwell connects businesses with 401(k) providers, banks, advisors and payroll providers to make it easier for small businesses to start creating employee savings offers. It allows companies to direct employee payroll to the right savings programs.

The company white-labels its software and platforms to companies like Morgan Stanley, which uses the technology for its workplace financial platform, Morgan Stanley at Work. It also partners with other payroll startups like Toast and Gusto to direct their customer information to savings providers.

Working with states like Oregon, Connecticut, Maryland, Colorado, Virginia, and Maine and Vestwell provides a technology platform to connect data to government savings programs like the 529 College Savings Plan .

Vestwell raised $70 million in Series C funding last year, led by Wells Fargo Strategic Capital and Fin Venture Capital. Other investors include Goldman Sachs, Morgan Stanley, Manulife and Point72.

Schumm said the company plans to further expand the savings programs it covers. In the past year alone, Vestwell is now working with 529 college savings plans and ABLE Savings – a savings plan for people with disabilities and their families – and also hopes to run emergency savings accounts and accounts. health savings.

Here’s the 12-slide pitch deck Vestwell used to raise $70 million:

About Ellie Cohn

Check Also

How FinFlx aims to help protect gratuity payments in the UAE

The coronavirus pandemic has caused hardship and disruption on many levels around the world. For …