Betterment

wealthtech-retailrobo advisors

FOUNDING YEAR: 2008
LOCATION: United States
Last Update: 17/07/2020

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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)

People

FOUNDERS

Jon Stein

BOARD MEMBERS AND ADVISORS

Arvind Purushotham

Charles Birnbaum

Saman Majd

Steve Lockshin

Geert Bekaert

Phillip Riese

John Jarve

Rob Stavis

NUMBER OF EMPLOYEES

51-200

INVESTORS:

and AB Kinnevik.

Andy Dunn

Anthemis Group

Bessemer Venture Partners

Citi Ventures

Fabrice Grinda

Francisco Partners

Globespan Capital Partners

Jason Finger

Kinnevik AB

Menlo Ventures

Northwestern Mutual

Red Swan Ventures

Reinmkr capital

KEY EMPLOYEES:

Eli Boverman (COO)

Jonathan Stein (CEO)

Steve Lockshin

Momentum

FUNDED

YES

TOTAL FUNDING

$175 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  · $70 M  · Jul 2017

LISTED

NO

Innovation Programs

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