Retirement startup Human Interest eyes $200M raise, doubling valuation to $3B as fintech funding rebounds

Human Interest is on track for another major milestone. The San Francisco startup, known for simplifying 401(k) plans for small and midsize businesses, is in talks to raise about $200 million, according to The Information. If the deal goes through, the funding would push its valuation to nearly $3 billion—more than double the $1.3 billion it secured just a year ago.

The potential round signals a renewed appetite for fintech companies. Two years ago, rising interest rates cut valuations across the sector. Now, investors are showing fresh interest in firms proving they can grow revenue and sustain momentum. Human Interest is one of them, recently topping $150 million in annual recurring revenue, a figure that puts it among the strongest private players in retirement services.

“The decade-old startup provides employers with 401(K) account management services. It recently generated more than $150 million in annual recurring revenue, according to the person,” The Information reported, citing a person with direct knowledge of the fundraising.

Founded in 2015, Human Interest built its pitch around a simple idea: retirement savings shouldn’t be a luxury reserved for employees at big firms. Traditional providers like Fidelity and Vanguard cater to large corporations, but small businesses often struggle to offer retirement plans. Human Interest stepped into that gap with a tech-driven model that automates compliance, plan setup, and investment options, keeping costs low for businesses that would otherwise be shut out. Today it serves more than 25,000 employers and manages retirement accounts for hundreds of thousands of workers.

The funding talks come after a string of capital infusions that have fueled its growth. In July 2024, Human Interest pulled in $267 million at a $1.33 billion valuation, setting it up for an eventual IPO. That round included heavyweight backers like BlackRock. Before that, in 2021, the company raised $200 million at a $1 billion valuation, officially reaching unicorn status. And just last month, it landed up to $50 million from Morgan Stanley Tactical Value.

The current negotiations reflect how far fintech has bounced back since the downturn of 2023. Companies that can prove traction—especially in underserved markets—are regaining investor confidence. Human Interest fits that mold. It doesn’t just offer stock funds but also gives clients access to bonds, international equities, and real estate strategies, making its platform more attractive to a wider base of savers.

Led by CEO Jeff Schneble and a team with roots at financial giants, the company has kept its focus on scalability. Integrations with payroll providers and financial advisors have helped it expand its reach, and newer offerings like 403(b) plans are broadening its market. Competitors such as Guideline and Betterment for Business are still circling, but Human Interest’s full-service approach has kept it ahead of the pack.

The buzz around this latest raise is also tied to the company’s IPO ambitions. Human Interest has been open about its public market goals since last year’s fundraising, and fresh capital could accelerate that timeline. Whether the round closes at the reported valuation remains to be seen, but the discussions mark another turning point for fintech’s comeback story.