Digital Savings Startup Vestwell Lands $385M, Doubles Valuation
Share:
Vestwell, a digital savings platform, has raised $385 million in a Series E funding round co-led by Blue Owl Capital and Sixth Street Growth.
The New York-based startup declined to reveal its new valuation, saying only that it has doubled since it raised a $125 million Series D round in December 2023. (Crunchbase shows that Vestwell was valued at $1 billion post-money at the time of that last raise, although the company did not confirm that when asked.)
In total, Vestwell says it has raised $660 million in capital since its 2016 inception.
Also participating in the latest round were Neuberger Berman, Silver Lake Waterman, Morgan Stanley, Franklin Templeton, TIAA Ventures and HarbourVest Partners.
Vestwell is growing “profitably,” according to CEO Aaron Schumm, who said the company’s annual recurring revenue is now more than $200 million. The platform has more than 2 million active savers and works with more than 500,000 businesses. In total, Vestwell has over $50 billion in assets administered across workplace, institutional and government channels.
The company grew nearly 50% year over year, Schumm said, and is operating with “strong unit economics and improving margins.”
Vestwell’s revenue model is dependent on its customers and their preferred structure, according to Schumm. Typically, it’s a monthly fee per employer and/or a monthly fee per employee.
The company works with financial institutions, payroll and HR platforms to distribute or integrate its white-labeled savings products to employers and employees nationwide. Those partners include Assure, BambooHR, Deel, Franklin Templeton, Intuit QuickBooks, JPMorgan, Morgan Stanley, Paylocity, Rippling, Square and Toast.
Overall funding to wealth management startups totaled $1.9 billion in 2025, per Crunchbase data, roughly the same amount as in 2024. That’s down from about $3.8 billion raised by such startups in the peak funding year of 2021.
Connecting the dots
Schumm founded Vestwell with the goal of addressing the problem of “fragmented” savings.
“[There were] separate systems for retirement, emergency, education, disability and other savings programs. Each had its own rules, vendors and barriers to participation,” he said. “Vestwell solves that problem by connecting these programs into one interoperable platform.”
Describing the company as an enterprise fintech platform, he said Vestwell makes it easier for employees and employers “to save, manage and grow their money, no matter the size of the company.”
It supports a range of savings vehicles, including retirement: 401(k), 403(b) and IRA savings programs; education such as 529 savings plans; emergency savings accounts; and ABLE accounts for people with disabilities. Its offering is accessible across more than 20 languages.
Presently, Vestwell has 500 employees.
Expansion plans
The company plans to use its new capital to expand its distribution. For example, it is working to embed savings more deeply into payroll, benefits platforms, financial institutions and government-led public programs.
It’s also continuing to invest in AI-native capabilities with the goal of having them personalize guidance, automate administration and surface “actionable” insights for users and their employers.
Before Vestwell, Schumm co-founded wealth management startup FolioDynamix, which was acquired by Envestnet in 2017 for $195 million.
Tim DeGrange, principal at Blue Owl, describes Vestwell as “a standout company.”
“Vestwell is taking a holistic approach to savings, making it far more durable than just a recordkeeping platform,” he wrote via email. “It has created the infrastructure layer that connects payroll providers, financial advisors, enterprises and state programs into a unified savings ecosystem.”
Related Crunchbase Pro query:
Related reading:
- Wealth Management Startups See Funding Rise
- Wealth Management Platform Wealthfront Targets $2.05B Valuation In Latest Fintech IPO
Illustration: Dom Guzman
In This News
Share:
In This News
Share:
Read More
Biotech Startup M&A Is Reliably Delivering Some Big Exits
Only 2 States Saw Their Share Of US Venture Funding Rise Last Year
Digital Savings Startup Vestwell Lands $385M, Doubles Valuation
Share:
Vestwell, a digital savings platform, has raised $385 million in a Series E funding round co-led by Blue Owl Capital and Sixth Street Growth.
The New York-based startup declined to reveal its new valuation, saying only that it has doubled since it raised a $125 million Series D round in December 2023. (Crunchbase shows that Vestwell was valued at $1 billion post-money at the time of that last raise, although the company did not confirm that when asked.)
In total, Vestwell says it has raised $660 million in capital since its 2016 inception.
Also participating in the latest round were Neuberger Berman, Silver Lake Waterman, Morgan Stanley, Franklin Templeton, TIAA Ventures and HarbourVest Partners.
Vestwell is growing “profitably,” according to CEO Aaron Schumm, who said the company’s annual recurring revenue is now more than $200 million. The platform has more than 2 million active savers and works with more than 500,000 businesses. In total, Vestwell has over $50 billion in assets administered across workplace, institutional and government channels.
The company grew nearly 50% year over year, Schumm said, and is operating with “strong unit economics and improving margins.”
Vestwell’s revenue model is dependent on its customers and their preferred structure, according to Schumm. Typically, it’s a monthly fee per employer and/or a monthly fee per employee.
The company works with financial institutions, payroll and HR platforms to distribute or integrate its white-labeled savings products to employers and employees nationwide. Those partners include Assure, BambooHR, Deel, Franklin Templeton, Intuit QuickBooks, JPMorgan, Morgan Stanley, Paylocity, Rippling, Square and Toast.
Overall funding to wealth management startups totaled $1.9 billion in 2025, per Crunchbase data, roughly the same amount as in 2024. That’s down from about $3.8 billion raised by such startups in the peak funding year of 2021.
Connecting the dots
Schumm founded Vestwell with the goal of addressing the problem of “fragmented” savings.
“[There were] separate systems for retirement, emergency, education, disability and other savings programs. Each had its own rules, vendors and barriers to participation,” he said. “Vestwell solves that problem by connecting these programs into one interoperable platform.”
Describing the company as an enterprise fintech platform, he said Vestwell makes it easier for employees and employers “to save, manage and grow their money, no matter the size of the company.”
It supports a range of savings vehicles, including retirement: 401(k), 403(b) and IRA savings programs; education such as 529 savings plans; emergency savings accounts; and ABLE accounts for people with disabilities. Its offering is accessible across more than 20 languages.
Presently, Vestwell has 500 employees.
Expansion plans
The company plans to use its new capital to expand its distribution. For example, it is working to embed savings more deeply into payroll, benefits platforms, financial institutions and government-led public programs.
It’s also continuing to invest in AI-native capabilities with the goal of having them personalize guidance, automate administration and surface “actionable” insights for users and their employers.
Before Vestwell, Schumm co-founded wealth management startup FolioDynamix, which was acquired by Envestnet in 2017 for $195 million.
Tim DeGrange, principal at Blue Owl, describes Vestwell as “a standout company.”
“Vestwell is taking a holistic approach to savings, making it far more durable than just a recordkeeping platform,” he wrote via email. “It has created the infrastructure layer that connects payroll providers, financial advisors, enterprises and state programs into a unified savings ecosystem.”
Related Crunchbase Pro query:
Related reading:
- Wealth Management Startups See Funding Rise
- Wealth Management Platform Wealthfront Targets $2.05B Valuation In Latest Fintech IPO
Illustration: Dom Guzman
In This News
Share:
In This News
Share:
Read More
Biotech Startup M&A Is Reliably Delivering Some Big Exits