Betterment received $ 100 million in a new round of financing, the company's valuation reached $ 700 million

Startup Betterment, specializing in the development of technologies for the automation of financial planning, today received a $ 100 million investment in the E-round.



Among the main investors is the Swedish Kinnevik, and among the investors in the past rounds there were such funds as Bessemer Venture Partners, Menlo Ventures, Anthemis Group and Francisco Partners. As a result, after this round, the market value of Betterment reached $ 700 million versus market capitalization of $ 400- $ 500 million a year earlier, after the D-round of investments a year ago.

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“For us, this round has become a kind of test of our growth in recent years and the launch of improved products.



It seems to me that this decision will really allow us to develop successfully. Now people better understand our history and how we continue to grow, ”said John Stein, CEO of Betterment.

Initially, analysts reported a potentially larger amount of investment, but the head of Betterment decided to agree to a more restrained amount - it should be enough for development in the near future. And such a volume of investments will not jeopardize the future of the company due to non-fulfillment of obligations to investors.



Betterment customers mainly trade ETF assets using automated algorithms, not consultants, as in most other companies. In the plans for the development of Betterment automation and other aspects of life - the function of RetireGuide, which allows you to manage savings by the time of retirement. As part of RetireGuide, Betterment customers will be able to connect third-party accounts to manage savings and synchronize with investments.



Currently, Betterment has 149 employees, but the company plans to hire new specialists in the staff. Over the past year, available Betterment assets for investment have grown from $ 1.1 billion to $ 4 billion and more than 150 thousand customers - this growth only shows the demand for automated solutions of existing things in the market.