401(k) Firm Human Interest Hits Unicorn Status, Eyes IPO

San Francisco-based SMB 401(k) provider Human Interest has reached a new milestone in an already-impressive history of funding, raising $200 million last week for a total valuation of $1 billion.

The company has made waves with its digital retirement benefits platform, which boasts zero fees and an automatic management feature, lowering the barrier to effective retirement planning. Looking to address the widening gap in financial health—nearly 50% of Americans are anticipated not to have sufficient savings when they reach the age of retirement—Human Interest has made a space for itself in long-neglected vertical domains including retail, hospitality, construction, and nonprofits.

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This round of funding is part of a remarkable streak of successes for Human Interest: in a step up from its founding in 2015, the company raised $55 million in Series C funding earlier this year. Among the investors in its latest round of funding are Softbank Vision Fund 2, Crosslink Capital, and TPG global impact investing platform The Rise Fund, joining existing backers such as Glynn Capital and U.S. Venture Partners.

Human Interest Chief Financial Officer Mike Armsby previously speculated the company would consider pursuing an IPO in 2023, with executives citing having $200 million in run-rate revenue as a benchmark for taking it public. With its new unicorn status and adding millions in revenue every month, it seems Human Interest may be primed for its next big step sooner than anticipated.