Betterment Raises Additional $70M with the Goal of Becoming the Most-Loved Financial Services Company of a Generation

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Jul 21, 2017, 06:00 ET

NEW YORK, July 21, 2017 /PRNewswire/ -- Betterment, the largest independent online financial advisor, today announced a $70 million round of funding, an extension of last year's Series E. Swedish investment company Kinnevik led the round, extending its financing from last year. Previous investors Bessemer Venture Partners, Menlo Ventures, and Francisco Partners also participated in the round.

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 including access to licensed financial experts on the phone, advanced tax-efficiency tools, portfolio personalization, and a range of other new features. This financing will enable Betterment to continue to aggressively grow its business and increase product development.

"Kinnevik and Betterment have formed a strong partnership over the last year, and we welcome their increased commitment to our growth story," said Jon Stein, Founder and CEO of Betterment. "We've always prioritized 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."

"The follow-on investment into Betterment aligns with our strategy of investing over multiple rounds into high-performing technology enabled companies," said Chris Bischoff, Senior Investment Director, of Kinnevik AB. "Betterment has continued to impress us with its strong growth, customer-centric focus, cutting-edge technology and talented team. After a year of investment, we saw additional opportunities for growth and proposed the financing to Betterment. We are excited about the opportunity to deepen our relationship."

Betterment offers a globally diversified portfolio of index-tracking exchange-traded funds (ETFs) with personalized advice in a goal-based investing framework. Customers can open and customize regular investment accounts, traditional/SEP/Roth IRAs, trust accounts, and accounts for retirement income. Betterment also has expanded its platform to serve advisors and 401(k) markets. For more information, please visit Betterment.com.

Contact Info:

Joe Ziemer, [email protected], 212-228-1328
Arielle Sobel, [email protected], 646-836-9246
Danielle Shechtman, [email protected], 212-228-1328

Betterment is the largest independent robo-advisor, helping people to intelligently manage and grow their wealth through smarter technology. With more than 270,000 customers and nearly $10 billion in assets under management, the service offers a globally diversified portfolio of ETFs, designed to help provide you with higher expected returns for retirement planning, building wealth, and other savings goals. Betterment also helps customers get on track for a comfortable retirement with RetireGuide™, a retirement planning tool that lets people know how much they should save and if they are investing correctly. Betterment was a CNBC Disruptor 50, FT 300 and Webby award winner, and it has been featured in the New York Times, Forbes, and the Wall Street Journal. Betterment helps people work to achieve a smarter financial future with minimal effort and for a fraction of the cost of traditional financial services.

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Determination of largest independent robo-advisor reflects Betterment LLC's distinction of having highest number of assets under management, based on Betterment's review of assets self-reported in the SEC's Form ADV, across Betterment's survey of independent robo-advisor investing services as of July 11, 2016. As used here, "independent" means that a robo-advisor has no affiliation with the financial products it recommends to its clients. If you also have a 401(k) account through Betterment For Business, that account is subject to a separate fee schedule and is not included in your balance for determining eligibility for the fee tiers or subject to the fee cap mentioned above.

SOURCE Betterment