Robo-Advisor Betterment Secures $160 Million in Funding
The New York-based digital wealth manager, Betterment, raised $160 million in funding. $60 million was raised through a Series F equity round, and the company got a $100 million credit facility.
The equity portion was led by the Treasury and saw the participation of new investors such as Aflac Ventures and ID8 Investments. The round also included existing investors: Kinnevik, Bessemer Venture Partners, Francisco Partners, Menlo Ventures, Anthemis Group, Globespan Capital Partners, Citi Ventures, and the Private Shares Fund.
The $100 million credit facility came from ORIX Corporation’s Growth Capital Group and Runway Growth Capital. At the same time, ORIX’s Growth Capital group took the role of an agent and a lead coordinator.
The capital injected into Betterment boosted the company’s valuation to nearly $1.3 billion. The newly acquired funding will be used to increase the offerings for small and medium-sized enterprises and accelerate the company’s rapid growth.
"From day one, Betterment's mission has been to make people's lives better with easy-to-use, personalized investment solutions. The record growth and demand for Betterment products and services prove 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."
Founded in 2008, Betterment is a robo-advisor with nearly 700,000 clients. It focuses on offering investment and retirement solutions and financial advisory services to consumers who aren’t necessarily proficient invesotrs. Betterment is one of the pioneers of the robo-advisory industry, empowering users to better manage their money with cutting-edge automated money-management tools and tax-smart strategies.
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