Betterment is an investment and savings app that revolutionizes how individuals manage their investments. For over a decade, this online-automated investment service has helped everyday investors create tailored portfolios of low-cost index funds. The company recently raised $100M in debt and $60M Series F at a ~$1.3B valuation led by Treasury and says it has around 700,000 clients (Annie Massa/Bloomberg).
With Betterment, you can have the freedom to take control of your finances and make decisions that are in your best interests without having to be an expert investor. This article will explore some of the most useful features of Betterment, which make investing easier than ever before.
Benefits of Using an Investment and Savings App
With the rising demand of investment and savings apps like Betterment, it can be difficult to decide which one to invest in. Betterment, one of the most popular investment and savings app, recently raised $100M debt and $60M series F at a ~$1.3B valuation led by Treasury and has around 700,000 clients.
Let’s look at a few benefits of using an investment and savings app such as Betterment.
Automated Investing
Investment and savings apps like Betterment use sophisticated algorithms to automate the process of investing. With automated investing, you can set goals, receive recommendations, and invest according to your risk profile without manually researching and selecting investments.
The automated tools an investment & savings app provides take the guesswork out of selecting investments. First, your financial goals are compared with your current portfolio to determine potential allocations. The app then evaluates different equity, fixed-income and other products that fit within those categories to create a diversified portfolio solution tailored specifically for you and your desired return goals. For example, if you are looking for income or a low-risk option, investments in bonds may be recommended.
Betterment and similar apps also provide access to experts who are available by phone or online chat for making informed decisions about your finances; help in navigating the complex world of investing; regular re-evaluations of priorities so that reasonable progress is being made towards achieving goals; daily monitoring of stocks, mutual funds, ETFs and other investment accounts; automatic rebalancing when portfolios drift out of balance; tax-optimized strategies tailored to personal needs; simplified recordkeeping; elimination of commissions on trades; access to research charts, commentary and advice from top analysts in the field as well as various other features geared towards providing users with a streamlined approach to investment decisions.
Low Fees
One of the main benefits of using an investment and savings app like Betterment is its low fees. Betterment offers fee-based accounts, no commissions or additional costs besides service-only fees, and a low annual fee calculated based on the money invested. This type of account is a great choice for those who don’t have much to invest at once or want to make individual investments but not necessarily invest large sums right away.
Betterment also has no minimum deposit requirement, making it easier for new investors to get started with their portfolios and take advantage of low fees immediately. Additionally, Betterment’s cash reserve feature allows it to add more money into an existing portfolio and earn more interest on those funds while maintaining access to the capital—without incurring any extra fees or charges.
The combination of low fees, minimal minimums, and cash reserve feature make using an investment and savings app like Betterment extremely attractive for budding investors and seasoned pros alike.
Access to Professional Financial Advice
Using an investment and savings app like Betterment allows you to access professional financial advice from experts in the field. This can be especially beneficial for those who may not have the resources or knowledge to effectively manage their finances and investments without help from an experienced advisor.
Betterment also provides clients personalized guidance on investment decisions and strategies, based on risk tolerance and other factors. Clients can use Betterment’s built-in strategy engine, which considers various metrics such as time horizon and tax status to create tailored portfolios. In addition, their experienced advisors are on call to provide additional support if needed. This gives investors greater control over their money while gaining access to important financial advice that they might not have been able to obtain otherwise.
Investment and savings app Betterment raises $100M debt and $60M Series F at a ~$1.3B valuation led by Treasury and says it has around 700,000 clients (Annie Massa/Bloomberg)
Betterment, an investment and savings app, recently raised $100 million in debt and a $60 million Series F round of financing at a $1.3 billion valuation. Treasury led the financing round, and Betterment currently boasts around 700,000 customers.
Let’s look at the details of this financing round and assess its implications for Betterment’s future.
Overview of Financing Round
Betterment, the automated investing and online financial advice company, recently announced a $100 million debt financing and an additional $60 million Series F equity round. The financing was led by Treasury, with existing investors Bessemer Venture Partners, Menlo Ventures, Scandinavia-based Kinnevik AB also participating in the round. This brings Betterment’s total funding to over $400M and its valuation to around $1.3B. The new funds will expand the company’s platform and reach more people.
Over the years, Betterment has become one of the most popular investment apps among users, particularly millennials. It offers a simple approach to investing and helps users save money on taxes with features such as Tax Loss Harvesting™. Their goal is to make investing more accessible for everyone, regardless of their level of financial knowledge. Currently, Betterment has around 700K clients and approximately $20 billion in assets under management (AUM).
With this latest infusion of capital, Betterment will continue growing its customer base encouraging individuals to invest in their future; helping them retire simply to increase their financial security and create lasting impact that they can be proud of.
Impact of Financing Round
Betterment’s recent financing round of $100 million in debt and $60 million in Series F equity funding at a ~$1.3 billion valuation, led by Treasury and bringing the total amount of financing it has raised to nearly $250 million, is indicative of the popular investment and savings app’s broad appeal.
Betterment’s successful funding round is a testament to its strong financial position, with around 700,000 customers and over $20 billion in assets under management. This result can be attributed to its innovative approach to investing and its focus on delivering exceptional customer service and convenience.
As part of the new financing round Betterment plans expand its services beyond retail investors by offering more product attributes like debt solutions for wealth management firms with high net worth clients and diversified asset classes including real estate securities that have traditionally been available only through full-service firms.
The expansion comes with an increased focus on corporate responsibility regarding issues such as diversity in hiring and adding trust factor for potential clients; the company claims that 25 percent of their employees are culturally diverse! This strong showing proves Betterment’s dedication to their mission of making smart investing accessible and easier to understand while bridging the gap between traditional banks and brokerages by providing investments tailored for each individual’s needs and bringing financial advice closer than ever before.
Conclusion
Investing and saving money with an app like Betterment is seen as a smart option for many who want to monitor their financial goals and commitments. Using Betterment, users can use features such as automatic goal setting, portfolio rebalancing, and access to standard and specialty ETFs.
Additionally, the app empowers users to make informed decisions by providing personalized investment advice that reflects their risk tolerance and access to a team of experienced professionals who will guide them through the process.
Overall, using an investment and savings app like Betterment can be a great option for those looking to put their money in the right place and reach their financial goals.
