Existing investors Bessemer Venture Partners and Anthemis Group also participated in the round with major contributions. Since its launch in 2010, Betterment has experienced rapid growth, increasing customer assets under management at 500% per year.

Behavior-based financial advice, elegant design, and extremely low cost portfolio management are hallmarks of Betterment's radically different approach. Its streamlined solution frees up time and helps people reach their biggest dreams faster. The only low-cost investing service to both automate good behavior and help customers make better decisions, Betterment is dedicated to helping people live better. Compared to the average money manager, the company estimates it will save its current customers $5 Billion in fees over their lifetimes. Compared to do-it-yourself financial planning and investing, Betterment estimates it saves customers 9 million hours - or the equivalent of 110 full working lifetimes.*

"Menlo Ventures has a proud history of investing in entrepreneurs who think big. Betterment is disrupting one of the most archaic industries - an industry that is hungry for innovation and rife with bad practice," said John Jarve, Managing Director of Menlo Ventures. "Betterment is the Apple of Investing: a powerful product with a simple, seamless UX. We're proud to partner with these bold innovators."

"We're thrilled to announce our partnership with Menlo Ventures," said Jon Stein, CEO and Founder of Betterment. "The funding allows us to accelerate growth and make our product better in all of the areas our customers have been requesting. We will soon offer an improved mobile experience, better options for shorter term goals, a more holistic approach to money management, and new behavior-based ways to encourage people to make the most of their money and lives."

Launched in May 2010, Betterment has evolved to include Traditional and Roth IRAs, unique advantages like auto-deposit, auto-rebalancing, goal-based investing, and the recently introduced Betterment Gifts, a next generation gift registry that enables people to contribute towards the biggest dreams of their friends and family. The typical complexities and time-consuming tasks of a well-managed investment account are automated with Betterment's sophisticated platform, freeing up time for other important things in life. Behavioral guardrails built into the account help users make smarter decisions with their finances.