Betterment has raised an additional $160 million, pushing the robo-adviser’s market value to almost $1.3 billion.
The funding includes a $100 million credit facility and a $60 million Series F equity round led by venture capital firm Treasury, Betterment said Wednesday in an emailed statement. Existing investors, including Kinnevik, Anthemis Group and Bessemer Venture Partners, also participated in the round, as did newcomer Aflac Ventures, a division of insurer Aflac.
Betterment, which has about 700,000 clients and oversees $32 billion, plans to use the funding to expand business-to-business units, CEO Sarah Levy said. In addition to its core app for individual savers, Betterment sells retirement plans to mid-size companies and tools for financial advisers.
“The fundraising is coming off of a year where we’re delivering incredible momentum,” Levy said.
Robo advisors, which manage money through software instead of direct human interaction, are a lower-cost option for savers than traditional financial planners.
While a “gambling aura” took over the retail investing market during the COVID-19 pandemic, Levy sees a place for trading and long-term portfolios in robo-advised accounts to co-exist.
“Advice is a layer on top,” she said.
