Betterment has raised $435M in funding to date. Here are the top-line bullets you need to know.
Betterment, an online financial advisory platform, has raised $160M in a mix of debt and equity. The equity of $60M was raised in a Series F round with participation from Menlo Ventures, Citi Ventures, Treasury, and Francisco Partners, among others. A $100 million credit facility was established with ORIX and Runway Growth Capital.
HOW’S THE COMPANY PERFORMING?
- New York-based Betterment, via its platform, offers personalized digital investment advisory services, including portfolio rebalancing, tax loss harvesting, and asset allocation.
- The company caters to around 700,000 clients comprising $32B in assets under management.
- In March, it acquired another robo-adviser, WealthSimple, which brought in nearly 17,400 new customers comprising $190M in assets under management.
- It has 350 employees globally.
WHY DOES THE MARKET MATTER?
- The global robo advisory market is projected to grow at a CAGR of 31.8% and reach a value of $41.07B by 2027, according to Allied Market Research.
- The increasing demand for financial digitization, institution of supportive government policies, and advancement of technologies in the field are driving market growth. Notably, Q1’21 funding to wealth tech companies hit $5.6B, which exceeded 2020’s total year-end wealth tech funding ($5.2B).