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Menlo Ventures leads $10m Betterment financing round

4 Oct 2012

Menlo Ventures has led a $10m financing round for Betterment following two years of stellar growth for the online investment manager.

Existing investors Bessemer Venture Partners and Anthemis Group also took part in the round, which the company said would be used to accelerate growth and improve its product.

Betterment provides a low-cost online money management service that has seen customer assets under management grow at 500 per cent per year since it was launched in 2010.

Menlo managing director John Jarve said, “Betterment is disrupting one of the most archaic industries – an industry that is hungry for innovation and rife with bad practice.

“Betterment is the Apple of investing: a powerful product with a simple, seamless UX. We’re proud to partner with these bold innovators.”

Jon Stein, CEO and founder of Betterment, said the company will soon offer an improved mobile experience, better options for shorter term goals, a more holistic approach to money management, and new behaviour-­based ways to encourage people to make the most of their money and lives.

Earlier this year Menlo Ventures made a three-times return on its investment adfter selling its stake in social commerce company PowerReviews for about $150m.

The firm held about 30 per cent of the customer review provider, which it sold to social data company Bazaarvoice, after leading a Series A round in 2005 and taking part in all other rounds.

Jarve was a board director for the company and made the venture firm’s initial investment.

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