Betterment raises a $100 mln Series E

Betterment said it raised a $100 million Series E round of funding with Swedish investment company Kinnevik leading the deal and previous investors Bessemer Venture Partners, Anthemis Group, Menlo Ventures and Francisco Partners participating. Fortune reported the transaction gives the company, which has developed a robo investment advice service, a post-money valuation of $700 million, up from $450 million in 2015.

PRESS RELEASE

Betterment Raises $100M in Series E Round of Funding

NEW YORK, March 29, 2016 /PRNewswire/ — Betterment, the largest independent robo-advisor, today announced a $100 million Series E round of funding. Swedish investment company Kinnevik led the financing, which includes participation from previous investors Bessemer Venture Partners, Anthemis Group, Menlo Ventures and Francisco Partners.

Over the past 15 months, Betterment has grown from managing $1.1 billion to now nearly $4 billion in assets for more than 150,000 customers. The growth has been driven by a significant increase in the customer base, existing customers investing more, and the launches of Betterment Institutional for advisors and Betterment for Business 401(k) for employers. The financing will enable Betterment to aggressively grow its business and increase product development.

“Our goal is to become the central financial relationship for our clients,” said Jon Stein, Founder and CEO of Betterment. “Over the past year, we’ve made great progress toward that goal with features like RetireGuide and account aggregation, but there is still work to do. It’s the early days for us on our path to helping millions of Americans reach their financial goals.”

“Kinnevik shares our vision of building a technology-driven financial services company that customers love,” Stein added. “From our first meeting, it was clear that we shared the same values of what a modern day financial company would look like.”

“Betterment is a fast-growing, independent company that has already established itself as a market leader in digital asset management by developing innovative and easy-to-use services,” said Lorenzo Grabau, CEO of Kinnevik. “In a short period of time, it has attracted a large and loyal group of customers who are investing a growing share of their wealth through the Betterment platform.”

“We are delighted to partner with Jon Stein and Eli Broverman, with Betterment’s entire team and with its existing investors to support the company’s long-term growth,” added Grabau. “Betterment shares many of the principles that have made other Kinnevik investment companies successful: a mission to make valuable digital services available and affordable to all, a true entrepreneurial spirit, the pursuit of continuous technical innovation, and a belief in building customer-centric businesses that contribute to their communities. Everyone should have access to unconflicted and low-cost financial services that enable them to reach their financial goals.”

Betterment offers its customers 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 the RIA and 401(k) markets. For more information, please visit www.Betterment.com.

Betterment is the largest independent robo-advisor, helping people to better manage, protect, and grow their wealth through smarter technology. With more than 150,000 customers and over $3.9 billion in assets under management, the service offers a globally diversified portfolio of ETFs, designed to help provide you with the best possible 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 is 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 to achieve a smarter financial future with minimal effort and for a fraction of the cost of traditional financial services.

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 March 15, 2016. As used here, “independent” means that a robo-advisor has no affiliation with the financial products it recommends to its clients.