The Duke Angel Network (“DAN”) announced today an investment in Vestwell Holdings (“Vestwell”), a New York-based financial technology company providing a white-labeled platform to financial advisors, benefit providers, and employers that enables them to better manage their clients’ and employees’ retirement plans. Other investors in the round included FinTech Collective, F-Prime Capital, Primary Venture Partners, and Commerce Ventures.
Vestwell enables small to mid-sized companies to cost-effectively offer retirement plans to their employees through financial advisors. The company’s platform modernizes and streamlines traditional 401(k), 403(b), and other defined contribution and benefit plans by combining personal financial advisor relationships with automated investment strategy execution and administration. Vestwell’s product suite includes low-fee plans, investment services, trading, administration, custody, recordkeeping, and trustee services. Vestwell assumes 3(38) and 3(16) fiduciary responsibility, which reduces both financial cost and legal liability for advisors and sponsors.
Vestwell was founded by CEO Aaron Schumm, who earned an MBA from Duke’s Fuqua School of Business. Mr. Schumm was previously the Co-Founder and Chief Customer Officer of FolioDynamix, a cloud-based wealth management platform that was acquired by Actua Corporation in 2014 for approximately $200 million. Prior to FolioDynamix, Mr. Schumm worked at several financial institutions and financial technology companies.
“I spent years working with advisors giving them tools to better service their wealth clients. I am now leveraging that experience to give advisors better solutions for their retirement plan clients, and the market reception has been outstanding. We are incredibly excited and humbled to give every employee in American the ability to retire richer, while doing what’s right by the advisor, their plan sponsor clients, and employees on one platform,” said Mr. Schumm. “The Duke Angel Network has been a fantastic partner in this journey, with keen insights from a well-versed team, aside from my personal gratitude of having my alma mater involved.”
“Vestwell’s vision for making retirement plans easier to establish and administer resonated with our members,” said John Glushik, Managing Director of the Duke Angel Network. “Aaron and the Vestwell team have a proven track record in the space and we are excited to be working with them.”
About Vestwell Advisors
Vestwell Advisors is a subsidiary of Vestwell, a 3(38) and 3(21) SEC registered investment advisory firm, specializing in 401(k) and other defined contribution retirement investment management services. Learn more at www.vestwell.com and on Twitter @Vestwell.
About the Duke Angel Network
The Duke Angel Network is focused on helping private companies grow by facilitating the flow capital and support from Duke-affiliated angel investors. Founded in 2015, the Duke Angel Network is investing in companies in which a founder, executive, or board member is a Duke University alumnus, faculty member, staff member, student, or parent. Members (investors) are individual accredited investors with a Duke affiliation. The group targets private companies with the potential for significant growth and financial return. In addition to facilitating investments, the Duke Angel Network leverages the power of the global Duke community to provide guidance and expertise to portfolio companies.
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