What is Betterment?
Founded in 2008 and headquartered in New York, NY, Betterment operates as a leading digital financial advisor, offering automated, portfolio-based investment options. The company aims to democratize access to sophisticated investment strategies, providing personalized financial planning and wealth management services through its technology platform. Betterment's core offering includes robo-advisory services, retirement planning tools, and tax-loss harvesting, catering to a broad spectrum of individual investors seeking a more accessible and cost-effective alternative to traditional financial advisory services. The company's commitment to fiduciary standards ensures that client interests are prioritized, fostering trust and long-term relationships in the competitive fintech landscape.
How much funding has Betterment raised?
Betterment has raised a total of $435M across 7 funding rounds:
Series A
$3M
Series B
$10M
Series C
$32M
Series D
$60M
Series E
$170M
Debt
$100M
Series F
$60M
Series A (2010): $3M with participation from Thomas Lehrman, Anthemis Group, and Bessemer Venture Partners
Series B (2012): $10M led by Anthemis Group, Menlo Ventures, and Bessemer Venture Partners
Series C (2014): $32M supported by Northwestern Mutual, Menlo Ventures, Bessemer Venture Partners, Globespan Capital Partners, and Anthemis Group
Series D (2015): $60M featuring Menlo Ventures, Francisco Partners, Bessemer Venture Partners, and Northwestern Mutual Capital
Series E (2017): $170M backed by Kinnevik, Globespan Capital Partners, Anthemis Group, Francisco Partners, Menlo Ventures, Bessemer Venture Partners, and Citi Ventures
Debt (2021): $100M with participation from ORIX USA and Runway Growth Capital
Series F (2021): $60M led by Bessemer Venture Partners, Treasury, Francisco Partners, and Kinnevik
Key Investors in Betterment
ORIX USA
ORIX USA is a global financial services organization providing a wide range of investment, financing, and asset management solutions. They operate as a diversified financial platform supporting organizations in managing capital and pursuing strategic growth opportunities.
Kinnevik
Kinnevik is an industry-focused investment company with an entrepreneurial spirit, dedicated to building and leading fast-growing digital consumer businesses. They partner with founders to create shareholder and social value.
Francisco Partners
Francisco Partners is a global investment firm specializing in private equity and credit investments in technology and technology-enabled businesses. They provide capital for carveouts, takeprivates, and growth financings.
What's next for Betterment?
With its latest major strategic investment, Betterment is poised to further enhance its technological capabilities and expand its service offerings. The substantial capital infusion, indicated by the $435M in total funding, suggests a focus on scaling operations, potentially through new product development, market penetration, or strategic acquisitions. The company's trajectory points towards solidifying its leadership in the robo-advisory space and potentially exploring adjacent financial services. This enterprise-level funding signals strong investor confidence in Betterment's business model and its capacity to navigate the evolving financial technology market, aiming for sustained growth and innovation.
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