Human Curiosity raises $200M at a $1B valuation, plans for an IPO – TechCrunch

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Lower than six months after elevating $55 million in a Sequence C spherical of funding, SMB 401(okay) supplier Human Curiosity right this moment introduced it has raised $200 million in a spherical that propels it to unicorn standing.

The Rise Fund, TPG’s world influence investing platform, led the spherical and was joined by SoftBank Imaginative and prescient Fund 2. The financing included participation from new investor Crosslink Capital and current backers NewView Capital, Glynn Capital, U.S. Enterprise Companions, Wing Enterprise Capital, Uncork Capital, Sluggish Capital, Susa Ventures and others. 

Over the previous 12 months, the San Francisco-based firm has raised $305 million. With the newest financing, it has now raised a complete of $336.7 million since its 2015 inception.

The corporate admittedly has an IPO in its sights, as evidenced by the appointment of former Yodlee CFO Mike Armsby to the function of CFO at Human Curiosity. It’s concentrating on a conventional IPO someday in 2023, with execs saying the goal is to have “$200 million+ in run-rate income earlier than going public.” At the moment, it’s at “tens of thousands and thousands of run-rate income” now, and including thousands and thousands of recent income every month.

Human Curiosity’s digital retirement advantages platform permits customers “to launch a retirement plan in minutes and put it on autopilot,” based on the corporate.  It additionally touts that it has eradicated all 401(okay) transaction charges.

Demand for 401(okay)s by SMBs seems to be at an all-time excessive, with Human Curiosity reporting that its gross sales tripled during the last 12 months. The corporate has additionally greater than doubled its headcount during the last 12 months to 350 staff.

The startup mentioned it’s seeing sturdy adoption in verticals that haven’t beforehand had retirement advantages, together with building, retail, manufacturing, eating places, nonprofits and hospitality. For instance, over the previous three quarters, Human Curiosity has seen 4.5x buyer development within the restaurant sector. Because the begin of the pandemic, Human Curiosity has skilled 2x increased enrollment development amongst hourly employees than salaried employees, and hourly employee belongings have tripled.

“Selling monetary well being is a core funding pillar for The Rise Fund. Human Curiosity delivers some of the compelling options to the persistent downside that roughly half of Individuals is not going to have sufficient financial savings once they attain retirement age,” mentioned Maya Chorengel, co-managing companion at The Rise Fund, in a written assertion. “Regardless of latest laws, primarily on the state degree, legacy applications haven’t, so far, produced the identical participant outcomes as Human Curiosity.”

The corporate mentioned it will likely be utilizing its new capital to increase its community of integrations and partnerships with monetary advisers, advantages brokers and payroll corporations. It additionally expects to, naturally, do some hiring –– one other 200 staff by 12 months’s finish, primarily in its product, engineering and income groups.

The 401(okay) for SMB area is heating up as of late. In June, competitor Guideline additionally raised $200 million in a spherical led by Normal Atlantic. 

Further particulars across the IPO and income had been added post-publication.

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