Betterment, a leading Robo-advisor, has raised $160 million in growth capital. The investment includes $60 million in Series F equity capital and $100 million credit facility. Betterment received a valuation of over $1.3 billion.
According to a company release, the equity investment was led by Treasury, with participation from existing investors, including Kinnevik, Bessemer Venture Partners, Francisco Partners, Menlo Ventures, Anthemis Group, Globespan Capital Partners, Citi Ventures, and The Private Shares Fund, as well as new investors Aflac Ventures and ID8 Investments.
The $100 million credit facility was established with ORIX Corporation USA’s Growth Capital group and Runway Growth Capital.
Betterment said the new funding will be used to accelerate its growth in particularly its rapidly growing 401(k) offering for small and medium-sized businesses.
Sarah Levy, Betterment’s CEO, said from day one her company’s mission has been to make people’s lives better with easy to use investment solutions:
“The record growth and demand for Betterment products and services proves how well we deliver,” said Sarah Levy, Betterment’s CEO. “We are thrilled to have the support of new and existing investors who believe in our business model and are excited by the opportunity to support our growth. We’re using these funds to further cement our category leadership with rapid innovation on top of our already differentiated product suite and unique, multi-pronged distribution model that serves retail investors, advisors and small businesses.”
Eli Broverman, a co-founder of Betterment and a founder of Treasury, said he has seen first hand how Betterment’s model has grown:
“Participating in Betterment’s next chapter as an investor is an exceptional opportunity,” said Eli Broverman, a co-founder of Betterment and a founder of Treasury. “I believe in Betterment’s team and vision, and we are thrilled to support the company’s future success.”
Betterment currently reports $32 billion in assets under management and nearly 700,000 clients.