SOURCE: Betterment

December 02, 2010 07:50 ET

Betterment Closes $3 Million in Series A Funding

Online Investing Service Manages Millions in Investments; Unveils Bond Portfolio Diversification Feature

NEW YORK, NY--(Marketwire - December 2, 2010) - (, the smart online investing service for anyone seeking better ways to manage their savings, today announced that the company closed $3 million in a Series A financing round led by Bessemer Venture Partners. Additional support for this round comes from Anthemis Group SA and a group of prominent influencers in the investing space including Thomas Lehrman, Fabrice Grinda and Dave Abner. Funds from the round will be used to grow Betterment's internal team and to support the formation of new products scheduled to launch within the next year.

"Betterment is in a unique position to shake up the personal finance space with an extremely intuitive interface and superior technology that helps people make smart investment decisions," said Rob Stavis, a partner at Bessemer Venture Partners. "The team is comprised of financial product development and investment management experts who saw a need in the current market place and created a more straightforward investing tool."

Since its official launch at TechCrunch Disrupt in May, Betterment has signed up thousands of users and was recently named a "Best of Show" presenter at FinovateFall 2010 in October. The company is currently managing millions of dollars in investments. 

"Our passion is making smart investing accessible to customers everywhere -- many of whom have been misguided, overwhelmed, or simply underperforming with their investments until now," said Jon Stein, CEO and Co-Founder of Betterment. "This funding gives us the resources to continue our momentum, growth and innovation by developing our next generation advice, management, and ease-of-use enhancements. It is a great honor to be backed by Bessemer Venture Partners since they have an incredible track record of building industry leaders and successful companies."

New Betterment Feature Provides Less Risk

Today, Betterment launched a more diversified Treasury bond portfolio designed to be less sensitive to interest rate changes. The introduction of a shorter duration Treasury bond ETF to the portfolio reduces the risk of value loss in a rising interest rate environment, while still addressing potential inflation. This feature will automatically be incorporated into all current and new users' investments to provide a more balanced bond portfolio, while retaining an attractive return that is likely to be higher than that of the average savings account.

About Betterment ( is the smart online investing service for people seeking a better way to manage their savings. Betterment is for active investors looking for a set-and-forget investment alternative, as well as traditional savers needing a straightforward bridge into equity and bond investing. Betterment helps customers invest in the right stock and bond allocation for their individual needs, uses insights from behavioral finance and psychology, and sets intelligent defaults to help people make better investing decisions. Customers can now enjoy the simplicity of an online bank account with the higher long-term returns associated with investing in conservative stock and bond index funds, grounded in robust financial theory supported by top economists and investors. Betterment was recently honored with FinovateFall 2010's "Best of Show" and was also named "New York's Best Startup" at TechCrunch Disrupt.

Signing up for Betterment takes just minutes. There's no minimum balance, and transfers and trades are always free.

For more information about's smart investing solution, please visit

About Bessemer Venture Partners
From offices in New York, Silicon Valley, Boston, Beijing, Mumbai and Herzliya, BVP manages more than $2 billion of venture capital invested in over 130 startups around the world. Some of our portfolio companies include Skype, LinkedIn and Yelp. Our financial technology investments include Gerson Lehrman Group, Quadriserv, Streambase, United Capital, Soleil Securities, ACTIV Financial Systems, and Indian retail brokerage firm Motilal Oswal. With our roadmap approach to investing, BVP seeks out entrepreneurial opportunities across industries and geographies. For more information please visit

Bessemer Venture Partners is a global investment group with offices in Silicon Valley, Boston, New York, Mumbai and Tel Aviv. One of the oldest venture-capital practices in the United States, BVP has partnered as an active, hands-on investor in Ciena, LinkedIn, Postini, Skype, Staples, VeriSign, W.R. Grace and Yelp. More than 100 Bessemer-funded companies have gone public on exchanges in Canada, India, London and the United States. To learn more, visit

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