Betterment, a digital investment startup robo-advisor, has raised $100 million in a Series E round venture funding led by Kinnivek, a Swedish investment firm. The firm previously raised $105 million in funding from several key investors.
Including the funding, the deal values Betterment at $700 million, up from $450 million in 2015. Betterment CEO Jon Stein said he chose not to take a $1 billion “unicorn” valuation in lieu of better terms.
The robo-advisor industry is growing by leaps and bounds, and Betterment has established itself as a leader in this area. Betterment now has 150,000 clients and nearly $4 billion in assets under management. Just last year, Betterment surpassed Wealthfront in assets under management.
Betterment has turned into the most well-funded robo-advisor startup. With the $205 million in funding, Betterment plans to build out its two newest lines of business. The first is a white-label product that Betterment sells to institutional investors. The second is a product that helps companies and employees manage their 401k investments.
Betterment recently added a new aggregation tool that pulls all of a customer’s assets into one dashboard. CEO Stein recently said, “We want to be our customers’ central financial relationship.”
StockBrokers.com will continue to monitor the entire robo-advisor area as more online brokers look to get in on this quick-growing market.
More on the Betterment deal can be found here.