America’s retirement crisis has reached a breaking point. With 42% of full-time workers lacking access to employer-sponsored retirement plans and the median American holding just $955 in retirement savings, the nation faces a $50T savings gap that threatens the financial security of tens of millions of workers. This access divide hits small business employees particularly hard – while 82% of workers at large companies have retirement plan access, that figure plummets below 50% for those at firms with fewer than 100 employees. States have responded by creating 17 mandated auto-IRA programs covering millions of previously excluded workers, but these initiatives require modern infrastructure capable of handling complex payroll integrations, compliance automation, and scalable recordkeeping across fragmented employer bases. Vestwell has emerged as the connective infrastructure powering this transformation, operating the platform behind more than 40 government programs while simultaneously serving financial advisors, payroll providers, and employers through its API-driven recordkeeping system. The company now administers over $50B in assets for more than 2M active savers, recently acquiring nearly 30,000 additional plans through its Accrue 401k purchase and expanding beyond traditional retirement into emergency savings, education accounts, and ABLE programs for people with disabilities.
AlleyWatch sat down with Vestwell Founder and CEO Aaron Schumm to learn more about the business, the company’s vision for unified savings infrastructure, recent funding round, and much, much more…
Who were your investors and how much did you raise?
Vestwell, the platform powering America’s modern savings economy, recently raised $385M in Series E funding. The round was led by Blue Owl Capital and Sixth Street Growth, with participation from new and existing investors including Neuberger Berman, SLW, Morgan Stanley, Franklin Templeton, TIAA Ventures, and HarbourVest. J.P. Morgan served as placement agent and structuring agent for the financing. This round doubles our valuation since the 2023 Series D and brings total capital raised to $660M.
Tell us about the product or service that Vestwell offers.
Vestwell is the modern savings platform equipping individuals with the tools, confidence, and access to move toward financial well-being. We make it easier for Americans to save for what’s next — from retirement to education, emergencies, and disability healthcare needs. We provide a fully integrated, end-to-end experience for financial advisers, employers, payroll providers, and government programs, combining administration, compliance, and AI-powered insights. Our platform simplifies plan setup, automates administration, and personalizes guidance for employees, helping them save more effectively and plan for the long term.
What inspired the start of Vestwell?
Vestwell was founded to address a critical gap in America’s savings system. Saving has historically been fragmented and inaccessible, especially for small- and mid-sized businesses. Our goal was to build a modern platform that makes saving easier, more scalable, and more inclusive — giving everyone the tools to plan for retirement, education, and other life milestones.
How is Vestwell different?
Vestwell combines scale, flexibility, and intelligence in one platform. We embed savings directly into payroll, benefits platforms, and public programs, making saving seamless. Our AI-native platform personalizes guidance, automates administration, and surface actionable insights for participants and employers alike. This unified, data-driven approach is rarely available outside large institutional plans, and it sets Vestwell apart in the market.
What market does Vestwell target and how big is it?
Our customers consist of small- to large- employers. We partner with financial advisors, payroll providers, and government programs — increase access to integrated savings solutions. Across these channels, Vestwell serves more than 2 million active savers and administers over $50 billion in assets. The U.S. savings market is enormous, and Vestwell’s platform addresses a critical need for accessible, modern infrastructure across retirement, education, emergency, and disability savings.
What’s your business model?
Vestwell is a modern savings platform powering workplace retirement and government-sponsored savings programs across the U.S. We partner with advisors, payroll providers, financial institutions, and government initiatives to deliver embedded savings vehicles through a unified, API-driven platform. Our recurring SaaS per user and per employer revenue model scales as our customers grow, creating durable, long-term revenue with strong operating leverage. Built for scale and compliance, our model leverages deep payroll integrations and long-term state partnerships to expand access to retirement savings nationwide while driving efficient customer acquisition and high retention.
How are you preparing for a potential economic slowdown?
The savings programs Vestwell powers are designed for long-term financial durability, sometimes for 40+ years of a person’s career. In synchrony, our platform’s recurring revenue model and diversified customer base position us to perform consistently across market cycles, providing stability even during periods of economic uncertainty. Deep partnerships across the ecosystem, combined with modern, scalable technology, help future-proof the business and position us to adapt as conditions evolve. We remain focused on operational efficiency, disciplined growth, and expanding adoption across channels, so we can continue to serve savers effectively regardless of macroeconomic conditions.
What was the funding process like?
The Series E process was rigorous and collaborative. Investors engaged deeply to understand our technology, growth trajectory, and vision for modernizing savings. Partnering with investors who share our interest in leading the savings industry, with a long-term perspective allowed us to align on strategic priorities and future milestones. We are excited to continue to have such a high-caliber of tier-1 investors behind Vestwell, supporting us today, and in the future.
What are the biggest challenges that you faced while raising capital?
The primary challenge was ensuring alignment with investors who understand the scale, complexity, and long-term vision of the savings infrastructure space. Vestwell’s ambition requires partners committed to supporting sustainable growth and innovation.
What factors about your business led your investors to write the check?
Investors were attracted to Vestwell’s role as the AI-infrastructure platform powering America’s modern savings economy, our rapid adoption across private and public channels, and our ability to scale profitably while broadening both product offerings and distribution. The platform’s strong underlying economics, AI capabilities, and mission-driven approach were key differentiators.
Investors were attracted to Vestwell’s role as the AI-infrastructure platform powering America’s modern savings economy, our rapid adoption across private and public channels, and our ability to scale profitably while broadening both product offerings and distribution. The platform’s strong underlying economics, AI capabilities, and mission-driven approach were key differentiators.
What are the milestones you plan to achieve in the next six months?
- Expanding distribution across payroll, benefits, financial institutions, and government programs
- Advancing AI-driven insights and personalized experiences for savers
- Extending savings pathways beyond retirement to include early education, child savings, emergency savings, as well as other types of savings accounts
- Continuing to grow employer and saver engagement
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Focus on operational discipline, building strong products and teams, and delivering measurable value to customers. Sustainable growth and customer trust are more important than chasing rapid funding rounds. It’s all about executing on the vision without a dependency of new capital to keep moving. If you execute, the capital will be there.
Where do you see the company going now over the near term?
Vestwell will continue scaling its unified savings platform, expanding access to modern savings tools, and leveraging AI to deliver smarter, more personalized experiences. We aim to reach more employers and employees nationwide, making saving easier, more accessible, and more effective for all.
What’s your favorite winter destination in and around the city?
As a Chicago-native, I love the winter. I enjoy being in the snow, skiing/snowboarding, sledding, or ice skating with my wife and kids, or hanging out at home, watching a movie with a roaring fire in a fireplace.
