Companies
/
Betterment
Fintech
Betterment is a New York-based robo-advisor and digital investment platform, one of the pioneers of automated, low-cost portfolio management for individual investors.
$2.29B
+$11.32
104.93%
30 days ago
$10.79
Create an account to view live offerings, pricing, and market activity.
Sign in to view offerings and live market activity.
Sign up with Augment to see the latest market activity.
Betterment was founded in 2008 by Jon Stein and Eli Broverman, launching publicly in 2010 as one of the earliest so-called "robo-advisors," a category of investment platforms that use algorithms to build and automatically manage diversified investment portfolios for individual customers based on their goals, time horizon, and risk tolerance, typically using low-cost index funds and exchange-traded funds, at a fraction of the fees traditionally charged by human financial advisors. The company's core pitch was that most individual investors, particularly those with more modest account balances that traditional wealth management firms had little incentive to serve well, could get better long-term investment outcomes from a low-cost, automated, diversified approach than from either picking individual stocks themselves or paying high fees to a traditional advisor for actively managed portfolios that often underperform simple index strategies after fees. Betterment's platform handles portfolio construction, automatic rebalancing to maintain target asset allocations as markets move, and tax-loss harvesting, a technique that can improve after-tax investment returns by strategically realizing investment losses to offset taxable gains, all automated processes that would be time-consuming for an individual investor to manage manually. The company expanded over time from its original taxable investment account product into retirement accounts, a cash management and banking product, and, more recently, financial advice packages that combine automated portfolio management with access to human certified financial planners for customers wanting a hybrid approach. Betterment has grown to manage tens of billions of dollars in assets on behalf of hundreds of thousands of customers, competing directly with Wealthfront, another pioneering robo-advisor, as well as with automated investment products launched by larger incumbents like Vanguard, Charles Schwab, and Fidelity once those firms recognized the competitive threat and appeal of the robo-advisor model. The company has raised substantial venture funding from investors including Bessemer Venture Partners, Kinnevik, and Francisco Partners.
FOR QUALIFIED INSTITUTIONAL AND ACCREDITED INVESTORS ONLY: Under federal securities laws, private market investments on this platform are available exclusively to Institutional and Accredited Investors. Verification of status required before investing. Private investments involve significant risks including illiquidity, potential loss of principal, and limited disclosure requirements. "Augment" refers to Augment Markets, Inc. and its affiliates. Augment Markets, Inc. is a technology company offering software and data services, not a bank or financial institution. Cash Accounts are provided by Modern Treasury Corp. financial institution partners and through Augment's technology. Augment does not act as a money services business, provide money transmission, or serve as a custodian of funds. Funds held in your Cash Account are not FDIC insured unless expressly disclosed. Full terms available in the Augment Cash Account Agreement. Brokerage services are offered through Augment Capital, LLC, an affiliated broker-dealer and member FINRA/SIPC. "Investment accounts" are not brokerage accounts and do not hold customer funds or securities. Investment advisory services are offered through Augment Advisors, LLC, an SEC-registered investment adviser. Registration with the SEC does not imply a certain level of skill or training. Neither Augment Advisors, LLC nor Augment Capital, LLC provide legal or tax advice; consult your attorney or tax professional regarding your specific situation. For additional information, please refer to Augment Advisors, LLC's Form ADV Part 2A (Firm Brochure) and FINRA BrokerCheck.
