401(k) Specialist Issue 4 - 2019 - 29

JUDGE
IAN SHERIDAN, Vestigo Ventures
'If You're a 401(k) Fintech
Innovator, I Want to Know You'
A CONVERSATION WITH Ian Sheridan is nothing short of fascinating. Geek chic, nerd cool-
call it what you will, but with the general public's hyper-focus on all things innovative, he still
finds a way to " wow " with his fintech predictions.
Sheridan's firm, Boston-based VC Vestigo Ventures, and its roster of recognizable names-
including former LPL Financial chief Mark Casady and Cogo Labs founder Dave Blundin-
is located across the street from MIT, which is by design. It's uniquely positioned to capitalize
on ideas generated within arguably the most prestigious technical institution in the entire
world.
" Vestigo was founded on the belief that, as operators, we're able to provide our unique
experience, having helped build the wealth and retirement system, coupled with our unique
data insights, " he says. " In telling the story of Vestigo, the headline would be, 'if you're a 401(k)
producer, provider or an advisor, and you're innovating, I want to know you.' "
Sitting on 10 petabytes (not a typo) of consumer internet data, it informs the work they do
in predictive analytics.
" Our big data and machine learning applications provide us with unique insight at a time
when financial services is going through rapid technological change, " he adds, meaning he
can source early-stage venture capital deals in which Vestigo specializes through the use of big
data and observing consumer internet behavior.
As we said-cool.
" We have a core-four thesis in financial services, and one of those areas that we invest in is
what we call worksite, which is specific to employee benefits. We have been deeply exploring
the 401(k) area specifically, which has resulted in two specific investments alongside 401(k)s.
One is student loan repayment as an employee benefit and the other is tax optimization
across household accounts that now includes the 401(k) space. "
Sheridan is wary about his next statement, but we successfully argue to keep it on the
record, " as long as you do it without making me sound like a [jerk], " he quips.
" Of all the areas that are growing across financial services, the 401(k) space has been a kind
of a light well. We see artificial intelligence and machine learning taking off in banking and
asset management, we see a lot of new tech and infrastructure plays in financial services, but
retirement still seems to be lagging. "
Far from a slam, we see it as a call to arms, a fire lit under the industry to get it moving in a
critically important area.
And the good news is that he anticipates it will change, particularly as the definition of
" work, " and how it's performed, changes as well. He specifically references the gig economy
and one of his investments, a platform called Jobble.
" We are strong believers in worksite marketing and the evolution of the 401(k) in employee
benefits overall. We continue to look for opportunities to invest in the employee benefits space
and in the things that will optimize the individual employee's outcome, as well as the advisors
and counselors who service them. Those are the types of things we're searching for. "
" Our big data
and machine
learning
applications
provide us
with unique
insight at a time
when financial
services is going
through rapid
technological
change. "
Ian Sheridan is Co-founder and Managing
Director of early-stage venture
capital firm Vestigo Ventures.
ISSUE 4 2019 | 401kSpecialist.com
29

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401(k) Specialist Issue 4 - 2019

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