Betterment, the largest independent robo-advisor, has raised $100 million in Series E funding, valuing Betterment at $700 million. Swedish investment firm Kinnevik led the round and was joined by return backers Bessemer Venture Partners, Anthemis Group, Globespan Capital Partners, Menlo Ventures and Francisco Partners.
Betterment offers its customers a globally diversified portfolio of low cost index-tracking exchange-traded funds with personalized advice in a goal-based investing framework. Over the past 15 months, Betterment has grown from managing $1.1 billion to nearly $4 billion in assets for more than 150,000 customers. The growth has been driven by a significant increase in the customer base, existing customers investing more, and the launches of Betterment Institutional for advisors and Betterment for Business 401(k) for employers. The financing will enable Betterment to aggressively grow its business and increase product development.
The Orrick team advising Betterment included partners Anik Guha and Christopher Austin, associates Patrick Ekeruo and Tim Greene, of counsel Pat Zeigler and analyst Kathryn Montalvo.