NEW YORK — Betterment, an independent online financial advisor, has secured an additional $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.