Stein, founder and CEO of the web-based money management service hopes to raise achieve his target of funds managed to $100 billion by 2020.
Jon Stein, founder and CEO of Betterment, a rapidly expanding web-based money management service, has announced the conscription of $32 million in Series C funding.
Leading the funding round is Citi Ventures, Northwestern Mutual Capital and Globespan Capital Partners, while existing investors Bessemer Venture Partners, Menlo Ventures and Anthemis Group also have participated in the round.
Betterment previously raised $3 million in Series A funding in December 2010, and $10 million in Series B funding in October 2012.
Currently with $500 million under management, with that number that growing on an average of 10% monthly, New York based Betterment provides a service described by Stein that has succeeded in bringing a form of automation into the role of traditional wealth advisors. This the company achieves by offering investors cloud-based software that will guide their savings plans as well as optimize any investment gains.
Unlike most of their competitors, Betterment does not demand a minimum investment amount and charge a minimum commission of .35% clients who invest less than $10, 000 falling as low as 15% for higher amounts, around one third of what traditional money management companies typically charge.
Betterment, founded in 2007, and with a staff of around fifty, intends to use the new investment to expand the range of its product offering.
Jon Stein qualified as a Chartered Financial Analyst (CFA) from Harvard University, later going on to attend Columbia Business School.
Prior to founding Betterment, Jon was employed by a number of New York based international banks, brokers and other financial institutions, involved in the development of financial products and platforms as well as investment strategies, focusing specifically on controlling risk management strategies. Jon’s most recent Wall Street position was as senior consultant at First Manhattan Consulting Group.