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§ Private Profile · New York City, NY, USA
Robo-advisor providing automated digital wealth management and retirement planning for individuals and businesses, focused on low-cost investing.
Betterment has raised $555.0M across 9 funding rounds.
Key people at Betterment.
Betterment has raised $555.0M in total across 9 funding rounds.
Betterment is a financial technology company based in New York City that provides automated digital wealth management, retirement planning, and cash management solutions for retail investors and businesses. Operating as a robo-advisor, the platform generates revenue primarily through management fees on assets under management and software fees from its business-to-business advisory and workplace 401(k) platforms. The company currently manages over $45 billion in assets for more than 850,000 retail and institutional customers and reached a $1.3 billion valuation after securing over $435 million in total venture funding. Backed by prominent venture capital firms including Bessemer Venture Partners and Menlo Ventures, the firm expanded its digital asset capabilities by acquiring cryptocurrency portfolio manager Makara in 2022 under the leadership of Chief Executive Officer Sarah Levy. Betterment was originally founded in 2008 by Jon Stein and Eli Broverman.
# High-Level Overview
Betterment is a technology-driven financial services company that democratizes wealth management through automated investing and financial planning tools.[1] Founded in 2008, the company has grown to serve over 1 million customers and manages over $65 billion in assets under management.[4] Betterment's mission is to empower people to build wealth with confidence and ease by combining innovative investing technology with expert service and support.[2]
The company operates across three primary business lines: automated investing portfolios composed of low-cost exchange-traded funds (ETFs), high-yield savings accounts, and retirement solutions including IRAs and 401(k)s for small businesses.[1][5] Betterment serves retail investors, small businesses, and financial advisors, positioning itself as the largest independent digital financial advisor based on assets under management among independent robo-advisors.[6]
# Origin Story
Betterment has been in business since 2008, establishing itself as a pioneer in the fintech disruption of traditional wealth management.[1][7] The company emerged during a period when financial advisory services were dominated by high-cost, traditional asset managers, and Betterment's founding vision centered on making sophisticated investment strategies accessible to everyday investors through technology.
Under the leadership of CEO Sarah Levy, Betterment has evolved from a robo-advisor startup into a comprehensive financial services platform.[2] The company's trajectory reflects the broader shift toward digital-first financial services and the growing demand for low-cost, transparent investment solutions.
# Core Differentiators
# Role in the Broader Tech Landscape
Betterment exemplifies the fintech disruption of traditional financial services, riding the wave of democratized investing that has reshaped the industry over the past 15+ years. The company's success reflects several converging trends: the decline of high-fee advisory services, the rise of passive index investing, regulatory acceptance of robo-advisors, and consumer demand for transparency and accessibility.
By proving that sophisticated wealth management could be delivered at scale through technology, Betterment has influenced the broader ecosystem, prompting traditional financial institutions to develop their own digital advisory capabilities. The company's emphasis on tax efficiency and low costs has become table stakes in the industry, raising standards across the sector.
# Quick Take & Future Outlook
Betterment's position as the largest independent digital financial advisor reflects the maturation of the robo-advisor category and the company's ability to scale beyond early adopters. As wealth management increasingly shifts online and younger generations prioritize low-cost, transparent financial services, Betterment is well-positioned to capture market share.
The company's expansion into retirement solutions and small business 401(k)s suggests a strategy to deepen customer relationships and increase lifetime value. Future growth will likely depend on Betterment's ability to compete with both established financial institutions entering the digital space and newer fintech entrants, while maintaining its core value proposition of simplicity, low costs, and tax efficiency. The broader trend toward financial automation and AI-driven personalization will shape how Betterment evolves its technology and service offerings.
Key people at Betterment.
Betterment has raised $555.0M across 9 funding rounds. Most recently, it raised $160.0M Debt / Series F in September 2021.
Betterment has raised $555.0M in total across 9 funding rounds.
Betterment's investors include Eli Broverman, Aflac Ventures, Anthemis, Bessemer Venture Partners, Citi Ventures, Francisco Partners, Globespan Capital Partners, ID8 Investments, Kinnevik, Menlo Ventures, Runway Growth Capital, The Private Shares Fund.
