Betterment Inc., already the largest automated investment advisor, announced Thursday it has landed $60 million in financing to help it grow.
The funding was led by San Francisco-based private equity firm Francisco Partners, in conjunction with Bessemer Venture Partners, Menlo Ventures and Northwestern Mutual Capital, which had previously invested in Betterment.
The privately held, New York-based robo advisor, which manages more than $1.4 billion of assets for more than 65,000 customers, also said that Peter Christodoulo of Francisco Partners is joining the company as a member of its board of directors.
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"Our growth has continued to accelerate," Jon Stein, Betterment's founder and CEO, said in a news release. "This new capital will allow us to grow even faster and increase the development of new products."
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Betterment, which serves as a platform for about 90 RIAs at the moment, plans to use some of the money to bring on up to 30 new employees by year's end, which would boost its payroll to about 120 people.
It also will spend some of the new dollars on algorithms that will help answer investors' questions. The company recently unveiled Betterment Institutional, a digital solution aimed at helping advisors better serve their clients and make their practices more efficient.
"The questions we hear from our customers are: How much should I be saving in my IRA versus my 401(k)? Am I saving enough relative to my goals? We want to give that peace of mind in five minutes. That's not an easy task," Stein told RIABiz.com.
The $60 million brings its total funding to $105 million, according to CrunchBase, which tracks startup funding.
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