Betterment

wealthtech-retailrobo advisors

FOUNDING YEAR: 2008
LOCATION:
Last Update: 05/07/2020

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About

Betterment is an online investment company which allows users to select how much they want to invest in stock and bond ETFs. It also provides a facility to open an account without paying any deposit and charges a management fee of 0.15%–0.35% based on the account balance. Its automated platform eliminates the typical complexities & time taken by a traditional investment account and also offers a B2B2C platform for RIAs as well as a 401(K) investment. Recently, Betterment was named in the 2019 Forbes FinTech 50 startups list.

Focus

PRODUCTS & SERVICES

Provides services for financial planning, retirement, IRAs, trust & tax loss harvesting, and help its users by automating investing services to manage, protect, and grow their wealth.

REVENUE MODEL

Transaction-based revenue model – the company charges fees starting at 35% for customers with less than $10,000 invested through the service & 15% for those with more than $100,000 assets under management.

MAIN CLIENTS

Invested

Burgess Financial Planning

and Henfruit.

EXISTING PARTNERSHIPS

Fidelity

and XY Planning Network.

COMMENT

The company aims at giving its customer 4.30% higher returns compared to a typical DIY investor.

Traction

VALUATION / MARKET CAP:

$800 M in 2017

TRANSACTIONS VALUE:

$15 B in 2019

ACTIVE USERS:

0.4 Million in 2019

TRACTION COMMENT:

The company manages over $15 billion in assets for 400,000 customers. (Feb. 2019)

Momentum

FUNDED

YES

TOTAL FUNDING

$275 M

DATE OF LAST FUNDING

Aug 2017

TOTAL FUNDING COMMENT

The company will use its fund to build new products. (July 2017)

FUNDING SERIES

SERIES A  · $3 M  · Dec 2010

SERIES B  · $10 M  · Oct 2012

SERIES C  · $32 M  · Apr 2014

SERIES D  · $60 M  · Feb 2015

SERIES E  · $170 M  · Jul 2017

LISTED

NO

Innovation Programs

BASICS

FOUNDING YEAR:

2008

LOCATION:

Views:

745 VISITORS | 1721 VIEWS
LATEST FUNDING ROUND

$275 M

TOTAL EMPLOYEES
51-200

About

Betterment is an online investment company which allows users to select how much they want to invest in stock and bond ETFs. It also provides a facility to open an account without paying any deposit and charges a management fee of 0.15%–0.35% based on the account balance. Its automated platform eliminates the typical complexities & time taken by a traditional investment account and also offers a B2B2C platform for RIAs as well as a 401(K) investment. Recently, Betterment was named in the 2019 Forbes FinTech 50 startups list.

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Momentum+
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Innovation Programs

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