Betterment has raised $100 million in a funding round led by Swedish investment firm Kinnevik which values the American robo-advisor at $700 million.
New York-based Betterment claims more than 150,000 customers who have invested nearly $4 billion dollars through the platform, which uses algorithms to help clients invest their money in low-cost index funds.
With robo-advising currently one fintech’s hottest sectors, the new funding round sees Betterment’s value soar from $450 million just over a year ago when it raised $60 million.
The money will be used to expand Betterment’s suite of features, with the firm busy rolling out things such as synced accounts and a service for small businesses.
Says CEO Jon Stein: “Betterment is focused on building the most transparent, customer-aligned company in wealth management—and we aim to become our customers’ central, most-trusted financial relationship.”