Robo-Adviser Betterment Raises $100M During Series E Funding Round & Valuation Grows to $700M

On Tuesday, robo-adviser firm Betterment announced it has received a total of $100 million from venture capital investors during a series E funding round. The company also confirmed that its valuation has raised from $450 million to $700 million.

betterment_logoSwedish investment firm, Kinnevik, led the funding round. Previous investors of Betterment, which Bessemer Ventures Partners, Menlo Ventures, Anthemis Group and Francisco Partners, also participated in the round.

CEO of Betterment, Jon Stein, revealed to Fortune that investors offered the company deals at higher valuations, but those offers had “unfriendly terms” including liquidation preferences, ratchets, and “all kinds of structure.”

Stein commented:

“We have zero structure. The most clean, vanilla 1x preference.”

Betterment considers itself the largest, fastest-growing automated investing service. It helps customers to better manage and grow their wealth through smarter technology. The company stated:

Betterment 2“Each investment portfolio is designed to get customers optimal investor returns. Our goal-based investing framework and advice algorithm let customers know if they are on track to reach their investment goals like Retirement or a Safety Net Fund, in seconds.”

Betterment also noted:

“Each investment portfolio is designed to get customers optimal investor returns. Our goal-based investing framework and advice algorithm let customers know if they are on track to reach their investment goals like Retirement or a Safety Net Fund, in seconds.”

 

In 2015, the company reportedly surpassed its competitor, Wealthfront, which manages $3 billion worth of assets. Last month, Betterment unveiled a new aggregation tool that combines all of its customers’ assets into one dashboard. Stein explained to Fortune:

“We want to be our customers’ central financial relationship.”

 

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