Betterment Closes $3 Million in Series A Funding
Online Investing Service Manages Millions in Investments; Unveils Bond Portfolio Diversification Feature
NEW YORK, NY — December 2, 2010 — Betterment.com (Betterment.com), the smart online investing service for anyone seeking better ways to manage their savings, today announced that the company closed $3 million in a Series A financing round led by Bessemer Venture Partners. Additional support for this round comes from Anthemis Group SA and a group of prominent influencers in the investing space including Thomas Lehrman, Fabrice Grinda and Dave Abner. Funds from the round will be used to grow Betterment’s internal team and to support the formation of new products scheduled to launch within the next year.
“Betterment is in a unique position to shake up the personal finance space with an extremely intuitive interface and superior technology that helps people make smart investment decisions,” said Rob Stavis, a partner at Bessemer Venture Partners. “The team is comprised of financial product development and investment management experts who saw a need in the current market place and created a more straightforward investing tool.”
Since its official launch at TechCrunch Disrupt in May, Betterment has signed up thousands of users and was recently named a “Best of Show” presenter at FinovateFall 2010 in October. The company is currently managing millions of dollars in investments.
“Our passion is making smart investing accessible to customers everywhere — many of whom have been misguided, overwhelmed, or simply underperforming with their investments until now,” said Jon Stein, CEO and Co-Founder of Betterment. “This funding gives us the resources to continue our momentum, growth and innovation by developing our next generation advice, management, and ease-of-use enhancements. It is a great honor to be backed by Bessemer Venture Partners since they have an incredible track record of building industry leaders and successful companies.”
New Betterment Feature Provides Less Risk
Today, Betterment launched a more diversified Treasury bond portfolio designed to be less sensitive to interest rate changes. The introduction of a shorter duration Treasury bond ETF to the portfolio reduces the risk of value loss in a rising interest rate environment, while still addressing potential inflation. This feature will automatically be incorporated into all current and new users’ investments to provide a more balanced bond portfolio, while retaining an attractive return that is likely to be higher than that of the average savings account.
Betterment is a groundbreaking online investment advisor and brokerage dedicated to helping busy people invest for their long-term goals with ease. Betterment achieves this through low-cost, well-grounded, and automatically implemented financial advice designed for smart, busy people. Set-and-forget accounts are optimized for each user, broadly diversified, regularly rebalanced–and still provide the liquidity and simplicity of an online bank account. This suite of services is unavailable anywhere else, including the large investment firms. Voted “Best of Show” at FinovateFall 2010 and honored as “New York’s Best Startup” by TechCrunch, Betterment is smart investing without hassles. For more information, please visit www.betterment.com. Follow Betterment on Facebook: facebook.com/betterment and Twitter: @betterment.
About Jon Stein, co founder & CEO Betterment:
Jon Stein is reinventing the investing industry. After seeing product after product that made the investing process more complicated than it ought to be, he set out to create a broadly accessible investment company that would help investors achieve the best return (factoring in costs) for the least risk. Passionate about helping people make smart decisions with their money, he founded Betterment.com in 2008.
Previously, Jon spent his career developing financial products, platforms, and investment strategies for international banks, brokers and other financial institutions, and advising them on strategies to mitigate the risks inherent in their products. Most recently, Jon held the position of senior consultant at First Manhattan Consulting Group, where he counseled a number of the world’s most prominent financial institutions. Jon has in-depth knowledge of retail banking and investing and is a Chartered Financial Analyst (CFA). Jon is a graduate of Harvard University and Columbia Business School.
About Bessemer Venture Partners
From offices in New York, Silicon Valley, Boston, Beijing, Mumbai and Herzliya, BVP manages more than $2 billion of venture capital invested in over 130 startups around the world. Some of our portfolio companies include Skype, LinkedIn and Yelp. Our financial technology investments include Gerson Lehrman Group, Quadriserv, Streambase, United Capital, Soleil Securities, ACTIV Financial Systems, and Indian retail brokerage firm Motilal Oswal. With our roadmap approach to investing, BVP seeks out entrepreneurial opportunities across industries and geographies. For more information please visit www.bvp.com.
For more information on Betterment and to arrange an interview with CEO, Jon Stein, please contact Johanna Scott: firstname.lastname@example.org or 212.219.1239.