Betterment Revenue, Valuation, Funding & Investors
Betterment is valued at $1.3B as of September 2021, a 16.0x multiple on its last reported $81M revenue.
Last Betterment valuation
$1.3B
Series F · Sep 2021
Last Betterment funding round
$60M
Series F · Sep 2021
Betterment revenue
$81M
Series F · Sep 2021
Key investors in Betterment
Bessemer Venture Partners
Menlo Ventures
Anthemis
Francisco Partners
Citi Ventures
Kinnevik
About Betterment
Betterment is a New York-headquartered robo-advisor founded in 2008. It manages customized diversified portfolios for individual, IRA, Roth IRA, and 401(k) rollover accounts with a 0.25% management fee. Features include tax-loss harvesting and RetireGuide planning tools accessible via mobile and web.
Founded
2008
HQ
New York City, NYWebsite
Status
Privately held
Customer focus
B2C
Revenue model
Subscription
Revenue
$81M (Sep 2021)
Valuation
$1.3B (Sep 2021)
Betterment Valuation
Betterment is currently valued at $1.3B, based on its Series F in September 2021.
The $60M round was led by Treasury.
Betterment's valuation has grown 2.9x from $450M at its Series D in February 2015 to $1.3B in September 2021, across 4 priced rounds.
Betterment valuation by funding round
Revenue multiple| Date | Stage | Valuation | Revenue Multiple |
|---|---|---|---|
| Sep 2021 | Series F | $1.3B | 16.0x |
| Jul 2017 | Series E | $800M | - |
| Mar 2016 | Series E | $700M | - |
| Feb 2015 | Series D | $450M | 40.9x |
Betterment Revenue
Betterment's latest recorded revenue is $81M, as of its Series F in September 2021. At a $1.3B valuation, that implies a 16.0x revenue multiple.
Revenue grew from $11M in February 2015 to $81M in September 2021, while the revenue multiple moved from 40.9x to 16.0x.
Betterment revenue by funding round
| Date | Revenue * | Valuation | Revenue Multiple | Stage |
|---|---|---|---|---|
| Sep 2021 | $81M | $1.3B | 16.0x | Series F |
| Feb 2015 | $11M | $450M | 40.9x | Series D |
* Revenue (or ARR) figures are the values recorded alongside each funding round. Typically run-rate revenue at the time of the deal, or a reported LTM (last 12 months) revenue.
Betterment Funding History
Betterment has raised a total of $322M across 5 funding rounds.
Betterment's first fundraising round was a $32M Series C in April 2014. The most recent completed round was a $60M Series F in September 2021.
Betterment funding rounds
| Date | Stage | Investors | Raised | Valuation | Deal Summary |
|---|---|---|---|---|---|
| Sep 2021 | Series F | Treasury (lead) | $60M | $1.3B | Betterment, a leading wealthtech company and the largest independent digital investment advisor, raised $160 million in growth capital on September 29, 2021, consisting of a $60 million Series F equity round led by Treasury with participation from existing investors like Kinnevik, Bessemer Venture Partners, Francisco Partners, Menlo Ventures, Anthemis Group, Globespan Capital Partners, Citi Ventures, and The Private Shares Fund, plus new investors Aflac Ventures and ID8 Investments, alongside a $100 million credit facility from ORIX Corporation USA’s Growth Capital group and Runway Growth Capital. The financing valued Betterment at $1.3 billion post-money, boosting its total funding to $435 million across multiple rounds. At the time, Betterment managed $32 billion in assets under management (AUM) for nearly 700,000 clients, offering automated 401(k) and IRA options, socially responsible investments, retirement planning, checking accounts, and high-yield savings. The funds were earmarked to accelerate growth in core retail investment products, advisor solutions, and especially its 401(k) offerings for small and medium-sized businesses, aiming to reinforce category leadership through rapid innovation and a multi-pronged distribution model serving retail investors, advisors, and small businesses. Based on 2021 data tied to this round, Betterment achieved $81 million in revenue, trading at a 16x revenue multiple against the $1.3 billion valuation. The company had demonstrated strong year-to-date growth prior to the round, with recent developments including appointing Sarah Levy as CEO, acquiring WealthSimple's investment advisory business, partnering with Zenefits for 401(k) plans, launching shared finance checking accounts, a co-pilot tool for advisors, and pre-packaged tech stacks for RIAs. Betterment operates in the competitive robo-advisor and fintech space, focusing on automated investing to maximize returns and minimize taxes, with products like high-yield cash accounts that improved unit economics amid rising interest rates post-2021. Subsequent growth saw revenue rise to $91 million in 2022 and an estimated $153 million in 2023, driven by AUM expansion to averages of $38.35 billion in 2023 via deposits into core robo-advisor and Betterment Reserve accounts, reaching over $65 billion AUM and 1 million customers by late 2025. Valuation adjusted to $1.15 billion by 2023 amid ongoing funding from prominent VCs. |
| Jul 2017 | Series E | Kinnevik (lead); Menlo Ventures; Bessemer Venture Partners; Francisco Partners | $70M | $800M | Betterment, a digital robo-advisor providing automated investment management, retirement planning, and cash management services, raised an additional $70 million in July 2017 led by Kinnevik, with participation from Bessemer Venture Partners, Francisco Partners, and Menlo Ventures. This funding followed a prior round in March 2016 and aimed to fuel aggressive business growth and product development, including features like access to licensed financial experts, advanced tax-efficiency tools, and portfolio personalization. At the time, Betterment had grown assets under management from $4 billion to nearly $10 billion over the prior 15 months, serving more than 270,000 customers, making it the largest independent robo-advisor by AUM as of July 2016. The round positioned Betterment to expand its offerings, such as RetireGuide for retirement planning, while maintaining low fees compared to traditional advisors—ranging from 0.15% to 0.35% of AUM plus ETF expenses. Investors like Menlo Ventures and Francisco Partners had backed Betterment previously, alongside others including Anthemis Group and Citi Ventures. Betterment's traction in 2017 highlighted its competitive edge in the fintech robo-advisor space against peers like Wealthfront, emphasizing automated rebalancing, tax-loss harvesting, and minimal-effort investing. The company has since raised a total of $435 million across 11 rounds, continuing to innovate with products like high-yield cash accounts and advisor platforms. |
| Mar 2016 | Series E | Kinnevik (lead); Daniel Curran; Menlo Ventures; Anthemis; Bessemer Venture Partners; Citi Ventures; Francisco Partners; Globespan Capital Partners | $100M | $700M | - |
| Feb 2015 | Series D | Francisco Partners (lead); Northwestern Mutual; Menlo Ventures; Anthemis; Bessemer Venture Partners | $60M | $450M | Betterment is an automated investing service (robo-advisor) founded in 2010 that uses algorithms and automation to provide low-cost wealth management. The platform offers tax-efficient, personalized portfolios with fees ranging from 0.15% to 0.35% of assets under management, with no minimum investment requirement. At the time of this funding round in February 2015, Betterment managed approximately $1.4 billion in assets across more than 65,000 customer accounts, representing the largest customer base among robo-advisors, though individual account sizes were generally smaller than competitors like Wealthfront. The company raised $60 million in a Series D growth round led by private equity firm Francisco Partners, with participation from existing investors Bessemer Venture Partners, Menlo Ventures, and Northwestern Mutual Capital. This brought total funding to $105 million. The round valued Betterment at approximately $400 to $500 million (midpoint $450 million), representing significant growth as the company was valued at $250 million to $700 million range among competitors. Sources indicated Betterment was trading at more than 40 times its revenue, a valuation multiple typical of internet companies rather than traditional financial services firms. The funding was intended to accelerate customer acquisition, asset growth, and product development to serve the underserved market of Americans seeking affordable financial advice and wealth management services. |
| Apr 2014 | Series C | Citi Ventures (lead); Globespan Capital Partners (lead); Menlo Ventures; Anthemis; Bessemer Venture Partners | $32M | - | Betterment, a robo-advisor providing automated investment management through technology-driven portfolios of exchange-traded funds, raised $32 million in its Series C funding round on April 15, 2014. The round was co-led by Citi Ventures and Globespan Capital Partners, with participation from Northwestern Mutual, Bessemer Venture Partners, Menlo Ventures, and Anthemis Group. At the time, Betterment had approximately 30,000 customers and managed $500 million in assets under management, which had grown fourfold in 2013. The company charges about 0.34% in advisory fees and fund expenses, significantly lower than traditional mutual funds at 1.4% or managed ETFs at 1.78%. The funding was intended to expand Betterment's product suite, including recent additions like a retirement withdrawal tool that connects to existing accounts for automated monthly distributions within spending limits. With 20% of customers over 50, the company planned further development in retirement planning, estates, and trusts. By November 2014, assets under management reached about $900 million, indicating consistent growth. Betterment positions itself to disrupt traditional money management by minimizing fees, human error, and taxes through features like automatic rebalancing and tax-loss harvesting, estimated to boost non-retirement account performance by 0.77% annually. The firm launched in 2010 and competes in the fintech space against players like Wealthfront, with total funding eventually reaching $435 million across 11 rounds from investors including Bessemer, Menlo, and later Francisco Partners. |
Who has invested in Betterment?
10 investors have backed Betterment across its funding rounds, including Bessemer Venture Partners, Menlo Ventures, Anthemis, Francisco Partners, Citi Ventures and Kinnevik.
Lead investors include Treasury, Kinnevik, Francisco Partners, Citi Ventures and Globespan Capital Partners.
Betterment Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| San Francisco, CA | 4 | Participant | Apr 2014 | |
| San Francisco, CA | 4 | Participant | Apr 2014 | |
 London | 3 | Participant | Apr 2014 | |
| San Francisco, CA | 3 | Lead | Feb 2015 | |
 Stockholm | 2 | Lead | Mar 2016 | |
| San Francisco, CA | 2 | Lead | Apr 2014 | |
| Boston, MA | 2 | Lead | Apr 2014 | |
| United States | 1 | Lead | Sep 2021 | |
This data is available for Pro users. Sign up to see all 10 Betterment investors. Start Free Trial | ||||
Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
Sign up to see data on 350K+ funding rounds and disclosed revenue and EBITDA valuation multiples, from seed, through growth stage, to pre-IPO.
Start Free TrialAcquisitions by Betterment
Betterment has acquired 5 companies to date.
Last acquisition by Betterment was on May 14th 2025. Betterment acquired Rowboat Advisors for undisclosed valuation.
Latest Acquisitions by Betterment
![](data:image/svg+xml,<svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 20 20"><rect fill="%23e5e7eb" width="20" height="20" rx="4"/></svg>){kind=small} Ellevest (automated investing unit) | |||||
| Description | Rowboat Advisors builds portfolio optimization software for wealth managers and financial institutions in New York. The platform analyzes asset allocation, risk, and performance to construct diversified portfolios compliant with regulatory standards. | - | Marcus Corp is engaged in two business segments, which are movie theatres and Hotels and Resorts. The movie theatres segment operates multiscreen motion picture theatres in Wisconsin, Illinois, Iowa, Minnesota, Missouri, Nebraska, North Dakota, Ohio and others, a family entertainment center in Wisconsin and a retail center in Missouri; Hotels and Resorts segment owns and operates full-service hotels and resorts in Wisconsin, Illinois, and Nebraska and manages full-service hotels, resorts and other properties in Wisconsin, Minnesota, Texas, Nevada, California, and North Carolina. It generates maximum revenue from the Theatres segment. | Gradvisor is a Seattle-headquartered SEC-registered investment advisor specializing in 529 college savings plans. The firm manages portfolios for education funding, emphasizing tax-advantaged investments tailored to state-specific benefits. Clients access detailed disclosures on risks, fees, and objectives through program statements, with guidance on comparing home-state plans for optimal tax advantages. | |
| HQ Country | | | | | |
| HQ City | San Francisco, CA | - | Salt Lake City, UT | Miami, FL | |
| Deal Date | 14 May 2025 | 26 Feb 2025 | 22 Apr 2024 | 23 Feb 2022 | |
| Valuation | undisclosed | undisclosed | undisclosed | undisclosed | |
| EV/Revenue | |||||
| EV/EBITDA | |||||
This data is available for Pro users. Sign up to see all Betterment acquisitions and their M&A valuation multiples. Start Free Trial | |||||
Betterment Competitors
Betterment competitors include listed companies like Flow Traders and Monex Group, and private ones like CoinTracker, Esusu, Raise Financial Services and Moneybox.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| San Francisco, CA | Private | - | - | $1.3B | - | |
| New York City, NY | Private | $59M | - | $1.2B | - | |
 Mumbai | Private | $96M | - | $1.2B | 12.5x | |
 Netherlands | Publicly listed | $914M | $243M | $1.4B | 11.0x | |
 Japan | Publicly listed | $577M | $189M | $1.2B | 3.1x | |
| London | Private | $125M | - | $1.1B | - |
Betterment Public Comps
Betterment is still privately-owned, but its public comps include Flow Traders, Monex Group, Wealthfront, Bravura Solutions, Tiger Brokers, Sharplink, TOP Financial Group, Matsui Securities, Abaxx Technologies and iFAST Corp.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $914M | $243M | 7.3x | 11.0x | 27.6x | 27.2x | |||
| $577M | $189M | 2.7x | 3.1x | 8.2x | 28.9x | |||
| $365M | ($93M) | 4.3x | 4.2x | (17.0x) | 9.9x | |||
| $201M | $55M | 4.9x | 4.9x | 17.9x | 17.0x | |||
| $612M | $284M | 0.4x | 0.4x | 0.9x | 1.2x | |||
| $28M | ($734M) | 61.9x | 39.9x | (2.4x) | 141.1x | |||
| $5M | ($716K) | 396.4x | - | (2613.7x) | - | |||
| $316M | - | - | - | - | - | |||
This data is available for Pro users. Sign up to see all Betterment competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Betterment
| When was Betterment founded? | Betterment was founded in 2008. |
| Where is Betterment headquartered? | Betterment is headquartered in New York City, NY, United States. |
| Is Betterment publicly listed? | No, Betterment is a private, VC-backed company. |
| What is Betterment's valuation? | Betterment was last valued at $1.3B in its Series F in September 2021. |
| How much funding has Betterment raised? | Betterment has raised $322M across 5 funding rounds. |
| What was Betterment's last funding round? | Betterment's last funding round was a $60M Series F in September 2021, led by Treasury. |
| Who are Betterment's investors? | Betterment's investors include Menlo Ventures, Bessemer Venture Partners, Anthemis, Francisco Partners, Kinnevik, Citi Ventures, Globespan Capital Partners, Treasury, Northwestern Mutual and Daniel Curran. |
| What is Betterment's revenue? | Betterment's latest recorded revenue is $81M (September 2021). |
| What is Betterment's revenue multiple? | Betterment's latest valuation implies a 16.0x revenue multiple ($1.3B valuation on $81M of revenue). |
| Which companies are comparable to Betterment? | Companies comparable to Betterment include CoinTracker, Esusu, Raise Financial Services, Flow Traders, Monex Group and Moneybox. |
| How many companies has Betterment acquired? | Betterment has acquired 5 companies, including Rowboat Advisors, Ellevest (automated investing unit), Marcus, Gradvisor and Makara. |
See companies similar to Betterment
Start Your
Free Trial Today
Try Multiples for free for 3 days. Got questions or need a demo? Schedule a call with us below.