Digital financial advisor Betterment has received a $70m extension to its Series E, which closed on $100m last year.
The round was led by Kinnevik, who also led the initial Series E. Other backers to the round included Bessemer Venture Partners, Menlo Ventures, and Francisco Partners.
New York-based Betterment uses a robo-advisor to help customers manage and grow their portfolio, with the platform offering global investments of ETFs. The company also offers its RetireGuide, which lets users know how much they should save and how to invest correctly.
The platform has a 0.25% management fee, but enables users to access, view, share and review its portfolio’s activities, as well as depositing and managing.
Across the past 15 months, the company has gone from managing $4bn to almost $10bn for over 270,000 customers. Since the initial Series E, Betterment has launched new products including licensed financial experts on the phone, advanced tax-efficiency tools, portfolio personalisation, among others.
This additional capital will be used to grow the business and increase product development.
Betterment founder and CEO Jon Stein said, “We’ve always prioritized what would have the biggest impact for our customers. Since the beginning, that’s meant focusing on delivering the best possible after-tax returns and empowering customers to do what’s best with their money. The additional funding will allow us to fulfill our mission and continue to build products that put even more money back in our customers’ pockets.”
This latest funding brings Betterment’s total investments up to around $275m, with the firms Series D, which was led by Francisco Partners, nabbing $60m in 2015.
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