The Lincoln, Nebraska-based fintech Nestimate has announced the successful closing of $3 mn in funding as part of its effort to help empower 401(k) plan fiduciaries to select, monitor, and implement retirement income solutions.
The company said the cash will support fiduciaries tasked with selecting, monitoring, and rolling out retirement income products inside workplace plans.
S3 Ventures led the round, joined by PruVen Capital, TIAA Ventures, and Invest Nebraska. Investors framed the move as a way to speed Nestimate’s push to make lifetime income options more available in defined contribution plans.
The firm’s stated mission centers on broad adoption of guaranteed income, something that has historically lagged despite demand from both sponsors and workers.
Founder and CEO Kelby Meyers said the new backing arrives at the right time.
We are thrilled to partner with investors who understand the urgent need to equip fiduciaries with the ability to activate retirement income in a 401(k) plan. This capital enables us to ramp up product development, scale our customer support capabilities, and expand into new frontiers of retirement.
Kelby Meyers, Nestimate’s Founder and CEO
Nestimate’s platform connects with retirement plan advisors, consultants, plan sponsors, recordkeepers, and insurers. It is positioned as an analytics and due diligence engine for institutions that want to bring annuity-like guarantees to employees without recreating the complexity of old-school pensions.
Charlie Plauche, General Partner at S3 Ventures, called the company’s trajectory proof that the industry sees momentum.
“The recognition and adoption the company has received from leading financial institutions indicates their ability to support the 401(k) industry’s transition from retirement savings plans to true plans for retirement”.
Nestimate breaks through the inertia that currently exists in adding retirement income to a plan. The company is at the forefront of modernizing the pension for today’s worker.
Charlie Plauche, General Partner at S3 Ventures
Wayne Baker, Chief Investment Officer at TIAA Ventures, echoed that view. “TIAA’s commitment to secure retirements through our promise of lifetime income is uniquely aligned with Nestimate’s experience and mission to democratize access to retirement income, especially as we see interest in guaranteed solutions increase. We’re excited to work with Kelby and his team to offer more Americans financial security through retirement.”
For PruVen Capital, Partner Travis Skelly described the company as filling a missing piece of the puzzle. “Nestimate provides the analytics, due diligence, and education fiduciaries need to deliver guaranteed income solutions”.
What gives us even more conviction is that several of our LP partners are already working with Nestimate, underscoring both the market demand and the strength of the platform.
Travis Skelly – PruVen Capital, Partner
According to Nestimate, the funds will go toward product development, scaling customer support, and expansion into new markets.
The company believes its model breaks through the barriers that have kept guaranteed retirement income from spreading across the $401(k) space.
