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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