Human Interest, a San Francisco-based startup 401(k) provider, claims to “launch a retirement plan in minutes and put it on autopilot.” The company, whose sales tripled over the last year, just closed a $200M Series C funding round at a $1B valuation, with an IPO in its sights.

Why should we care?
Startup 401(k) providers got a significant boost during the pandemic. For instance, Human Interest competitor Guideline doubled its assets under management during the pandemic, to the tune of $4B. It also secured a mammoth $200M funding round in June. Meanwhile, robo-adviser Betterment made significant gains in its 401(k) business. What may be happening is that employers operating in a remote or hybrid environment are adding 401(k)s instead of ping pong tables and free in-office lunches. According to Human Interest, adoption is growing in industries that have not previously had retirement benefits, including construction, retail, manufacturing, restaurants, nonprofits, and hospitality. It’s also seen 4.5x customer growth in the restaurant sector. The company says it plans to grow its network of integrations and partnerships with financial advisers, benefits brokers, and payroll companies.