- Betterment announced it has secured $160 million in growth capital. These are the details.
Betterment announced it has secured $160 million in growth capital comprising of a $60 million Series F equity round and a $100 million credit facility. This funding round comes as Betterment is now considered the largest independent digital investment advisor with $32 billion in assets under management and nearly 700,000 clients.
The Series F funding round was led by Treasury with participation from existing investors, including Kinnevik, Bessemer Venture Partners, Francisco Partners, Menlo Ventures, Anthemis Group, Globespan Capital Partners, Citi Ventures, and The Private Shares Fund, as well as new investors Aflac Ventures and ID8 Investments. And the funding round valued the company at nearly $1.3 billion.
The $100 million credit facility was established with ORIX Corporation USA’s Growth Capital group and Runway Growth Capital. And ORIX’s Growth Capital group acted as lead arranger and agent.
The additional funding will be used for accelerating the record growth Betterment has delivered year-to-date across its core retail investment products and advisor solutions, and particularly its rapidly growing 401(k) offering for small and medium-sized businesses.
KEY QUOTES:
“From day one, Betterment’s mission has been to make people’s lives better with easy-to-use, personalized investment solutions. The record growth and demand for Betterment products and services proves how well we deliver. We are thrilled to have the support of new and existing investors who believe in our business model and are excited by the opportunity to support our growth. We’re using these funds to further cement our category leadership with rapid innovation on top of our already differentiated product suite and unique, multi-pronged distribution model that serves retail investors, advisors and small businesses.”
— Sarah Levy, Betterment’s CEO
“I’ve seen first hand the strength of Betterment’s business model since its founding over a decade ago. Participating in Betterment’s next chapter as an investor is an exceptional opportunity. I believe in Betterment’s team and vision, and we are thrilled to support the company’s future success.”
— Eli Broverman, a co-founder of Betterment and a founder of Treasury
