Total amount raised
$435 Millions
Latest funding date
Location
Betterment has successfully raised significant funding through multiple rounds, attracting a diverse group of investors. The platform offers a range of financial services, including automated investing and retirement planning.
Keep reading to explore the details of Betterment's funding journey and the investors who support this innovative financial services company.
What Is Betterment?
Betterment, founded in 2008 by Eli Broverman and Jon Stein, is a financial services company based in New York, New York. The company specializes in automated investing and retirement planning, offering a range of services designed to optimize investment returns for various account types, including IRAs and 401(k) rollovers.
With a focus on smart, automated solutions, Betterment provides features like Tax Loss Harvesting and RetireGuide to help clients manage their investments efficiently. The platform aims to simplify the investment process, making it accessible to both current clients and potential investors.
Betterment employs between 101 and 250 people, reflecting its growth and commitment to providing high-quality financial services. The company's innovative approach has attracted significant funding and a diverse group of investors, solidifying its position in the financial technology sector.
How Much Funding Has Betterment Raised?
- Series A
- Amount Raised: $3M
- Date: December 1, 2010
- Lead Investors: Bessemer Venture Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop and launch Betterment's initial product offerings.
- Series B
- Amount Raised: $10M
- Date: October 3, 2012
- Lead Investors: Menlo Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the platform's features and user base.
- Series C
- Amount Raised: $32M
- Date: April 15, 2014
- Lead Investors: Citi Ventures, Globespan Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance technology and scale operations.
- Series D
- Amount Raised: $60M
- Date: February 17, 2015
- Lead Investors: Francisco Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and expand product offerings.
- Series E
- Amount Raised: $100M
- Date: March 29, 2016
- Lead Investors: Kinnevik
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support rapid growth and innovation.
- Series E
- Amount Raised: $70M
- Date: July 21, 2017
- Lead Investors: Kinnevik
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand the company's market presence.
- Secondary Market
- Amount Raised: Not publicly disclosed
- Date: August 29, 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to early investors and employees.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: April 30, 2021
- Lead Investors: SharesPost Investment Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing growth and development.
- Debt Financing
- Amount Raised: $100M
- Date: September 29, 2021
- Lead Investors: ORIX Growth Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support overall growth and innovation.
- Series F
- Amount Raised: $60M
- Date: September 29, 2021
- Lead Investors: Treasury
- Valuation at Round: Nearly $1.3 billion
- Motivation Behind the Round: To accelerate growth, especially in the 401(k) offering for small and medium-sized businesses.
Betterment has raised a total of $335M with a current valuation of nearly $1.3 billion.
Key Investors
- Kinnevik
- Details: Kinnevik is a Swedish investment company focused on building digital consumer businesses. It has a long history of investing in transformative companies across various sectors.
- Investment Focus Areas: E-commerce, financial services, healthcare, telecommunications
- Notable Investments: Zalando, Tele2, Babylon Health
- Bessemer Venture Partners
- Details: Bessemer Venture Partners is a venture capital firm that invests in early to growth-stage companies. It has a diverse portfolio spanning multiple industries.
- Investment Focus Areas: Technology, healthcare, financial services
- Notable Investments: LinkedIn, Shopify, Pinterest
- Francisco Partners
- Details: Francisco Partners is a private equity firm specializing in technology and technology-enabled businesses. It focuses on companies that can benefit from its deep sector expertise.
- Investment Focus Areas: Technology, healthcare, financial services
- Notable Investments: MyHeritage, GoodRx, Redis Labs
- Menlo Ventures
- Details: Menlo Ventures is a venture capital firm that invests in consumer, enterprise, and life sciences sectors. It has been a key player in the venture capital industry for over four decades.
- Investment Focus Areas: Consumer technology, enterprise technology, life sciences
- Notable Investments: Uber, Roku, Warby Parker
- ORIX Growth Capital
- Details: ORIX Growth Capital provides flexible capital solutions to high-growth companies. It is part of ORIX Corporation USA, which offers a wide range of financial services.
- Investment Focus Areas: Technology, healthcare, financial services
- Notable Investments: Not publicly disclosed
What's Next for Betterment?
Betterment is poised to capitalize on the growing demand for digital investment solutions, particularly in the 401(k) market for small and medium-sized businesses. With $160 million in new funding, the company aims to enhance its product suite and expand its market presence, leveraging its $32 billion in assets under management and nearly 700,000 clients.
Future fundraising opportunities appear promising, as Betterment's successful Series F round and increased valuation to $1.3 billion suggest continued investor interest. However, the company will need to navigate challenges such as competition from other robo-advisors and regulatory hurdles while maintaining growth and innovation.
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