✅ Betterment Hits Unicorn Status Following $160 Million Raise
For today’s digest, Betterment hits new strides as it reaches the coveted unicorn status. The US-based digital wealth manager has raised $160 million in funding through a $60 million Series F and a $100 million credit facility. Because of this, it has surpassed the unicorn milestone with a $1.3 billion valuation, per Finextra. Founded in 2008, Betterment has seen its assets under management growth accelerate over the past year. During April 2020-2021, it added $10 billion following a record-breaking quarter in Q1 2021 in which it onboarded 56,000 new clients. Since April, Betterment has scored roughly $4 billion in new client deposits, taking its total AUM to $32 billion. Over the past year, Betterment’s growth has been fueled by increasing consumer adoption of robo-advisory services. On top of that, the success of its newer products, and the takeover of its rival Wealthsimple’s US client book has led to even greater success. As growth through new account holders tapers off for US robo-advisors, Betterment will likely funnel funding toward differentiating its services. It will be interesting how Betterment will continue to attempt to differentiate itself over the coming months, especially when it comes to crypto investing options. Afterall, consumers’ interest in the digital asset class is spiking and approval of crypto ETFs by US regulators will likely follow.