New-York based wealth management platform, Betterment, secured $100m in Series E funding, led by the Swedish growth-stage investment firm, Kinnevik. This raise will allow the robo-advisor to build new services for not only it's initial target customer - the millennial, but also for corporates and financial advisors who can use Betterment as a way to manage their clients' accounts. Although AUM seems to be rising, it still seems difficult for these robo's to acquire users, so it wouldn't be too surprising if this $100m will be going used for heavy marketing and promotions.
“Everyone should have access to un-conflicted and low-cost financial services that enable them to reach their financial goals,” said Lorenzo Grabau, the chief executive of Kinnevik, in a statement. That statement echoes Betterment’s own pitch to consumers. Stein views other vendors in the financial technology sector as mere vendors, who are out for a buck and nothing more. Lenders — who’ve taken the biggest chunk of the fintech market outside of the robo-advisory space — or even the payments firms that are in the market; all of them are trying to sell something in the end.