Betterment eyes profits, IPO on $70 million round

Online financial advisory firm Betterment has raised $70 million, valuing the robo-advisory hybrid at $800 million.

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Betterment eyes profits, IPO on $70 million round

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Swedish investment company Kinnevik led the round, extending its financing from last year. Previous investors Bessemer Venture Partners, Menlo Ventures, and Francisco Partners also participated in the round.

Over the past 15 months, Betterment has grown from managing $4 billion to now nearly $10 billion in assets for more than 270,000 customers.

Since the company's last Series E financing in March 2016, Betterment has launched a series of new products including access to licensed financial experts on the phone, advanced tax-efficiency tools, and enhanced portfolio personalisation.

Betterment chief Jon Stein says the cash will go to building up the human touch element of its service as the company seeks its first profits and eyes a possible IPO.

"We've always prioritised what would have the biggest impact for our customers," Stein says. "Since the beginning, that's meant focusing on delivering the best possible after-tax returns and empowering customers to do what's best with their money."

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