What is Betterment?
Founded in 2008 and headquartered in New York, NY, Betterment operates as a leading digital financial advisor, offering a range of portfolio-based investment options. The company leverages technology to provide accessible and personalized investment management services, aiming to democratize wealth building for a broad client base. Betterment's platform provides automated investment strategies, financial planning tools, and retirement solutions, positioning it as a key player in the fintech industry. Its commitment to fiduciary standards and transparent fee structures has been central to its value proposition.
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 Anthemis Group, Bessemer Venture Partners, and Thomas Lehrman
Series B (2012): $10M led by Anthemis Group, Menlo Ventures, and Bessemer Venture Partners
Series C (2014): $32M supported by Menlo Ventures, Bessemer Venture Partners, Globespan Capital Partners, Northwestern Mutual, and Anthemis Group
Series D (2015): $60M featuring Northwestern Mutual Capital, Bessemer Venture Partners, Francisco Partners, and Menlo Ventures
Series E (2017): $170M backed by Globespan Capital Partners, Anthemis Group, Citi Ventures, Menlo Ventures, Francisco Partners, Kinnevik, and Bessemer Venture Partners
Debt (2021): $100M with participation from ORIX USA and Runway Growth Finance
Series F (2021): $60M led by Treasury, Francisco Partners, Bessemer Venture Partners, and Kinnevik
Key Investors in Betterment
ORIX USA
ORIX USA is a global financial services organization providing a wide array of investment, financing, and asset management solutions. It operates as a diversified financial platform supporting businesses, governments, and individuals across various industries with expertise in leasing, lending, and investment management.
Francisco Partners
Francisco Partners is a global investment firm specializing in private equity and credit investments within technology and technology-enabled businesses. The firm partners with maturing and growth-stage tech companies, offering strategic and operational support alongside capital.
Bessemer Venture Partners
Bessemer Venture Partners is a venture capital firm with a long history, investing in early-stage and growth-stage technology companies. The firm provides capital and strategic guidance to help founders build market-leading businesses.
What's next for Betterment?
The recent major strategic investment signals Betterment's ongoing trajectory toward scaling its operations and potentially expanding its service offerings. This infusion of capital is likely to fuel further technological innovation, enhance customer acquisition strategies, and strengthen its competitive advantage in the rapidly evolving fintech landscape. The company's consistent access to substantial funding rounds indicates strong investor confidence in its business model and its capacity to capture a larger share of the digital investment market. Future developments may include deeper integration of financial planning services and expansion into new demographic segments or international markets.
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