Betterment

Betterment is a robo-advisory platform that offers both digital-only and hybrid investment management services for individuals and businesses. For individuals, the company offers automated investing services through ETFs linked to stocks and bonds based on preferences and risk appetite. The platform also offers cryptocurrency portfolios for retail investors, along with individual retirement accounts and banking products such as high-yield savings and checking accounts, pursuant to a license from FDIC member bank nbkc.

Betterment’s platform for businesses and employers allows them to provide and manage 401(k) benefits, investment services, and student loan management services. In addition, the company has a platform for investment advisors to build and manage custom portfolios on the back of Betterment’s automated trading features. In June 2023 , the company  launched Betterment for Advisors product offering which includes tax optimization, streamlined client onboarding, customizable drift thresholds tools to support advisors with offering customized tax-efficient investment management services at scale.

The platform charges a fee of 0.25% per annum for standard automated services and requires no minimum account balance. Access to human advisors is available at a higher fee of 0.40% per annum and a minimum deposit of USD 100,000. For investing in crypto assets, the platform charges a 1% fee per annum and includes a feature to impose a 5% crypto exposure limit on users’ investable assets. Betterment had USD 33.8 billion in assets under management (AUM) and a little over 692,000 clients as of October 2022. The company had 397 staff as of the same date.

Betterment agreed to acquire Marcus Invest's digital investing accounts from Goldman Sachs in April 2024. It planned to strengthen its position in the digital investing space by transitioning the acquired accounts to its platform, providing customers with automated investing, diversified portfolios, tax-smart tools, and access to human advisors. The company acquired the US clientele of Toronto-based Wealthsimple in March 2021 for an undisclosed amount. In February 2022, the company also announced the acquisition of cryptocurrency robo-advisor Makara for an undisclosed sum which was to be used as a foundation of its own cryptocurrency investment offerings.

Key customers and partnership

In June 2023 , Betterment partnered with Ascensus, a financial tech solutions provider, to introduce employee wellness offerings that include 401(k), student loan management, personal retirement and investing, financial coaching, and educational savings. In September 2022, Betterment announced a partnership with Gemini , a crypto exchange and custodian, to offer curated crypto portfolios with listed digital assets on Gemini’s exchange. It also planned to use Gemini’s custodian services to allow its users to invest in cryptocurrencies and digital assets.

Funding and financials 

In September 2021, the company secured a total of USD 160 million in funding in a combination of equity and debt financing. The round includes USD 60 million in Series F funding, led by Treasury, valuing the company at almost USD 1.3 billion and USD 100 million in the form of a credit facility from ORIX Corporation USA’s Growth Capital Group and Runway Growth Capital. The new funds were to be used for further developing its core retail investment products and advisor solutions, with a particular focus on its 401(k) offering for SMEs.