Building the Best Automated Investment Service: Betterment Secures $32 Million in Funding
We are pleased to announce a new round of financing from the best investors in technology and financial management.
Our mission is to build the best automated investing service, based on efficiency, automation, transparency, accessibility, and delight.
We are hiring more dedicated, passionate, and thoughtful people to help us continue to bring innovative services to our customers.
Thank you for trusting us and believing in our mission. We are powering the pursuit of happiness by building the best automated investment service, based on efficiency, automation, transparency, accessibility, and delight.
With your support, we have quadrupled our assets under management in the last year—just our first step toward becoming the premier automated investment service.
Now we are taking another big step: We are pleased to announce a new round of financing for $32 million from the best investors in technology and financial management.
Powering the pursuit of happiness
Betterment is an automated investment service, where we take the best investment research—expertise about portfolio construction, fund optimization, and behavioral economics—and apply technology and engineering in a meaningful way to make it accessible for individual investors.
We treasure our first 1,000 customers who joined us back in 2010—those who believed in the idea of a more transparent, more efficient, automated investment service—and the promise of what was to come. More than 90% of our customers who joined our mission in 2010 are still with us today.
Building the best automated investment service
Building the financial infrastructure to disrupt an old model—much like Apple did with iPhone and the mobile phone industry nearly a decade ago—is a massive undertaking. Now the additional funding will help us to realize our (and your) dream.
We welcome new investors including Citi Ventures and Northwestern Mutual Capital—two esteemed companies with billions under management and decades of experience with financial services—to Betterment. We welcome new investors including Citi Ventures and Northwestern Mutual Capital—two esteemed companies with billions under management and decades of experience with financial services—to Betterment. Along with Globespan Capital Partners, these new investors join our existing partners, who also participated in this round, including Bessemer Venture Partners, Menlo Ventures and Anthemis Group.
With this money we will be expanding our products and services to bring Betterment to greater scale. Last week, we released our newest service, Retirement Income. It is the first automated income service available to retirees that provides a dynamic strategy for making safe, automatic withdrawals from a liquid investment account—we calculate the optimum amount of money to withdraw so there is nearly zero chance of depleting your portfolio over your selected time horizon.
Expect more. We will be announcing additional products and enhancements for you this year, all designed to optimize your net investor returns and delight you.
Growing every day
With more funding, we are hiring more dedicated, passionate, and thoughtful people to help us continue to bring innovative services to our customers.
Our team is an extraordinary mix of technology and financial experts, combining the best people from top-tier asset and wealth management firms (Barclays, J.P. Morgan, and Goldman Sachs) with engineers and data scientists from Google, Amazon, IBM, and Morgan Stanley, to name a few—plus a few savants who we hired right out of college.
Innovative technology is the best guidance that individuals have for optimum financial results—and we’re building that technology from the ground up. Thank you to those who have already joined the movement—and a welcome to those who are arriving. We look forward to a long and successful relationship with you.
Join us. Here’s how you can help: keep referring friends, keep giving us your feedback, keep us transparent, delightful, and efficient and everything we aspire to be. Thank you.
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