Betterment.com, a New York, NY-based online investing service for active investors who seek ways to manage their savings, closed $3m in Series A financing.
The round was led by Bessemer Venture Partners, with participation from Anthemis Group SA, Thomas Lehrman, Fabrice Grinda and Dave Abner.
The company intends to use the new capital to grow its internal team and to support the formation of new products scheduled to launch within the next year.
Commenting on the deal, Jon Stein, CEO and Co-Founder of Betterment, said: “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”.
Betterment is designed to help people invest in the right stock and bond allocation for their individual needs. It uses insights from behavioral finance and psychology, and sets intelligent defaults to support people in making investing decisions.
In conjunction with the funding, Betterment also launched a more diversified Treasury bond portfolio designed to be less sensitive to interest rate changes and to reduce the risk of value loss in a rising interest rate environment.