Robo financial advisor Betterment hits $1.3bn valuation

New York-based robotic financial advisor Betterment has hit a $1.3 billion valuation after raising $160 million in its latest funding round.

The firm, founded in 2008, provides automated goal-based investing to US consumers as well cash management services.

Betterment reported $29 billion of assets under management and over 650,000 customer accounts as of April 2021.

The funding round was led by venture-capital firm Treasury, and included Aflac Ventures, a division of insurer Aflac.

Existing investors Kinnevik, Anthemis Group and Bessemer Venture Partners also joined the round.

New York is thought to be third in the world for producing FinTech unicorns – independent companies with a valuation over $1 billion - behind London and San Francisco but ahead of Tel Aviv and Sao Paulo.

"From day one, Betterment's mission has been to make people's lives better with easy-to-use, personalised investment solutions,” said Sarah Levy chief executive at Betterment. “The record growth and demand for Betterment products and services proves how well we deliver.”

She added: "We're using these funds to further cement our category leadership with rapid innovation on top of our already differentiated product suite and unique, multi-pronged distribution model that serves retail investors, advisors and small businesses."

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