Betterment raises $70 million in new funding
Written by Anthony Strzalek
US-based online financial advisory outfit, Betterment, has secured $70 million in a new funding round in a move that will help the firm “aggressively grow its business and increase product development”.
The funding, an extension of last year’s Series E round, was led by Swedish investment company Kinnevik, with previous investors Bessemer Venture Partners, Menlo Ventures, and Francisco Partners also participating.
Over the past 15 months, Betterment has grown from managing $4 billion to now nearly $10 billion in assets for more than 270,000 customers. Since the company's last financing in March 2016, Betterment has launched a series of new product innovations.
Jon Stein, founder and CEO of Betterment, said: “Kinnevik and Betterment have formed a strong partnership over the last year, and we welcome their increased commitment to our growth story. We've always prioritised what would have the biggest impact for our customers.
“Since the beginning, that's meant focusing on delivering the best possible after-tax returns and empowering customers to do what's best with their money. The additional funding will allow us to fulfill our mission and continue to build products that put even more money back in our customers' pockets.”
Chris Bischoff, senior investment director of Kinnevik AB, added: “The follow-on investment into Betterment aligns with our strategy of investing over multiple rounds into high-performing technology enabled companies. After a year of investment, we saw additional opportunities for growth and proposed the financing to Betterment.”