Public Statements

Betterment Raises $160 Million in Growth Capital The additional funding will be used to accelerate the record growth Betterment has delivered year-to-date. Today, we're announcing that Betterment has secured $160 million in growth capital comprised of a $60 million Series F equity round and a $100 million credit facility. This moment comes as Betterment is the largest independent digital investment advisor with $32 billion in assets under management and nearly 700,000 clients. The Series F round was led by Treasury, with participation from existing investors, including Kinnevik, Bessemer Venture Partners, Francisco Partners, Menlo Ventures, Anthemis Group, Globespan Capital Partners, Citi Ventures, and The Private Shares Fund, as well as new investors Aflac Ventures and ID8 Investments. The financing valued the company at nearly $1.3 billion. The $100 million credit facility was established with ORIX Corporation USA’s Growth Capital group and Runway Growth Capital. ORIX’s Growth Capital group acted as lead arranger and agent. The additional funding will be used to accelerate the record growth Betterment has delivered year-to-date across its core retail investment products and advisor solutions, and particularly its rapidly growing 401(k) offering for small and medium sized businesses. “From day one, Betterment’s mission has been to make people’s lives better with easy-to-use, personalized investment solutions. The record growth and demand for Betterment products and services proves how well we deliver,” said Sarah Levy, Betterment's CEO. “We are thrilled to have the support of new and existing investors who believe in our business model and are excited by the opportunity to support our growth. We’re using these funds to further cement our category leadership with rapid innovation on top of our already differentiated product suite and unique, multi-pronged distribution model that serves retail investors, advisors and small businesses.” “I’ve seen first hand the strength of Betterment’s business model since its founding over a decade ago,” said Eli Broverman, a co-founder of Betterment and a founder of Treasury. “I believe in Betterment’s team and vision, and we are thrilled to support the company’s future success.” To all of our customers, we couldn't have achieved this without you. Thank you!

The Pursuit Of Betterment’s New CEO (And Finding Happiness Along The Way) Betterment Founder Jon Stein announces the appointment of Sarah Kirshbaum Levy as his successor and new CEO of Betterment. It’s the fall of 2007 on the Lower East Side. My Betterment clock starts not when we launch in 2010 but as I hash out the concept in conversations with roommates and friends. I have a crazy idea: to pursue my happiness via helping Americans pursue their happiness. I write a mission statement: empower customers to do what’s best with their money so they can live better. Investing feels complicated to most people, but the best practices are known and straightforward. Why not take the smart services used by the wealthy and institutions and make them accessible to every American? People like this crazy idea, some join me, and with sweat and sacrifice, a tiny, hungry, customer-impact-obsessed company is born. I pursue Betterment’s mission doggedly. My wife (whom I met in 2006—not coincidentally—her encouragement begets a startup) calls Betterment my “first child.” I say often (usually sincerely): “I’m the luckiest person, I have the best job in the world.” At times, it feels like all of my being, every waking hour, every dream, is intertwined with my company. I am Betterment. There is nothing else. Teammates become best friends (and each other's family: I officiate weddings of Bettementers who later have Betterment babies). I star in TV ads—never imagined that career turn. Early customers email me personally for support (and some still do—love y’all, customers). We grow to $25B AUM, more than 500,000 customers, a team of more than 300, and we move the industry forward. And yet, I know we can achieve more; we have millions more Americans to reach. The Pursuit Of Our Potential For some time, I look to bring in an experienced, dynamic operating leader to help drive the company forward. The search is not initially focused on one specific role to fill; it is about finding amazing talent that could help lead Betterment to realize our full potential. The time at home this year affords more time to devote to the search process, to talk to senior operating leaders and to think about what might be needed for the next leg of the journey. I spend time with hundreds of diverse candidates. I realize that the best way to achieve our mission might be to invite a successor to lead Betterment in the next phase of growth. Due to good fortune and intense effort in a most challenging year, the company has never been in a stronger position. Each line of business is reaching new heights in 2020. We’re beating targets, well-capitalized, with wind at our backs. It’s a good time to hand over the reins. Over the summer, I connect with Sarah Kirshbaum Levy. There is something enthralling about her. I don’t want to jinx or overload it, but outside of meeting my wife, it’s hard, at present, to think of a more consequential introduction. And this is over video conference! The Pursuit Of The One Over the next few months, I spend more time with Sarah and she begins engaging with members of the team and our board. I bring her in full-time as a consultant in a trial run. What a privilege not only to recruit my successor, but to observe her building relationships, to work side by side with her as she iterates on her plan, and to see her making every meeting more open and efficient. I give her my authority to work with the team to architect plans for 2021 and beyond, and she excels. My admiration grows as she starts effectively running the company, with my proxy. My execs tell me they have so much to learn from her. The only thing that is missing is the title—and today, we give her the title. Sarah’s Pursuits Sarah started out at Disney and spent the last 20 years at Viacom, home to beloved brands including Nickelodeon, BET, MTV, and Comedy Central. Through a series of senior leadership roles, culminating in Chief Operating Officer, she’s shepherded global phenomena, from SpongeBob to The Daily Show with Trevor Noah, connecting with audiences in meaningful ways. With her experiences leading large public companies, Sarah is the right executive to lead Betterment now, as we contemplate a transition from private to public in the coming years. For someone with a “big company” pedigree, she’s remarkably down to earth and scrappy. She’s launched and grown businesses, bought and sold businesses, managed the bottom line, and driven consumer brands to win. I appreciate her “outsider” perspective. Betterment is a unique company—not just finance, not just tech, 100% customer-impact obsessed. Take it from one who’s looked: It’d be hard to find someone who’s both spent a career in financial services and can credibly lead the change we envision: to empower customers to do what’s best with their money, so they can live better. The Pursuit Of Happiness I’ve done the best work of my life at Betterment, and I have worked too hard to stop giving it my all to realize this company’s mission, whatever form those efforts may take. From my role on the board, I’ll be supporting Sarah and her team, whether it be via recruiting, investor relations, telling our story, or upholding company culture and values. A dream for me since that Lower East Side fall in 2007 has been to build a sustainable institution, to build something that will outlast me. I’ve never taken a larger step toward that accomplishment than I am today in passing the torch to Sarah. I asked Sarah what mattered most to her in her next role, and she said, without hesitation, “A brand and mission I believe in.” She’s evidenced this for me in every interaction since. I believe that she’ll more fully realize the vision I laid out years ago, and make Betterment the most beloved, most essential financial brand for this generation. And in so doing, she’ll power the pursuit of happiness for millions of Americans.

Betterment’s Progress On Employee Representation Here’s the latest on our efforts to nurture diversity, equity, inclusion, and belonging among our team. In 2020, we first shared our employee demographics and commitments to doing better and promised to make public reporting on our progress at regular intervals. A lot has happened at Betterment since then: Sarah Levy joined us as our new CEO, we raised our Series F to continue our mission of Making People’s Lives Better, acquired Makara to fast track a cryptocurrency offering, and grew our team to over 400. We’ve been focused on our Diversity, Equity, Inclusion and Belonging (DEIB) strategy to drive sustained change for our employees and our broader community. We want to highlight some of the tangible outcomes we've created through community, hiring, retention, and training efforts. We're grateful for the dedication from all of those at Betterment who have made these outcomes possible, and recognize that our work is ongoing, and always will be. Betterment’s Employee Demographic Data We used 2020 as a call-to-action and reviewed our People strategy to make a significant impact on the diversity of our workforce. We implemented a multi-pronged approach focusing on: Recruiting and retention Goal setting and measurement Community-building and engagement, enhanced by creating and supporting ERGs (Employee Resource Groups) Full Time Employees 2020 Full Time Employees 2021 Leadership 2020 Leadership 2021 Recruiting and Retention A deliberate expansion of our candidate sourcing was a critical component of our strategy. We expanded our reach for potential candidates through various sources that are known for diversity hiring and were able to make significant progress, increasing representation of People of Color by 8 percentage points company-wide, with gains in our Black, Latinx, and Two or More Races populations. We also increased representation of women by 3 percentage points. Our Leadership Team is 33% women and 23% People of Color. We attribute much of our progress to our hiring outreach as well as our conscious efforts on inclusion and belonging. In 2021, 52% of our hires were People of Color, 46% were women, and 1% were non-binary. Our internal programming and ERG initiatives (more on these later) have also helped to build community and increase retention. Goal Setting and Measurement A strategic initiative we implemented at the start of 2021 was to incorporate DEIB progress into our company goals, performance metrics and bonus targets. Our bonus targets prioritized employee education and engagement in our DEIB curriculum to build cross-company awareness as well as for personal development. Bonus achievement required meaningful DEIB engagement at all levels of the organization: 100% of all employees participating in our DEIB core education 100% of the Executive Team and 65% of all other employees participating in at least one DEIB event or initiative per quarter A semi-annual qualitative assessment on representation efforts that is reviewed by the Executive Team and shared with the entire company In 2021, we achieved 100% of our bonus targets and we have set the same DEIB bonus weighting for 2022. To support our desire to drive both engagement and education, we refreshed our approach to DEIB education and made it a core pillar of our Talent Development offerings. We provided four streams of programming: All employees, including new hires, completed our online learning course: Inclusion and Belonging in the Workplace. Our Executive Team, People team, and all people managers attended bespoke trainings focused on building psychological safety and inclusive leadership provided by Merging Path & Collective DEI Lab. All employees were encouraged to attend our DEIB Learning Hours, featuring keynote speakers. Employees took advantage of counseling, support and facilitation resources to reflect on bias in the workplace, personal safety, how to overcome barriers and ways to foster support and allyship. Community Building and Engagement A big focus of 2021 was to build community and engagement via our Employee Resource Strategy Groups (“ERSGs”). We believe that the ERSGs are a great vehicle to support inclusion and for employees to develop a sense of belonging here at Betterment. A few facets of the program that contributed to its success included electing leadership for each of our 8 groups; pairing ERSGs with Executive Champions; and providing mentorship and support to build out roadmaps, goals, and budgets for the year. Each ERSG met monthly to build community, produced quarterly events to raise awareness and celebrate recognition months, and flexed their leadership skills working with our CEO, Exec Champs, and the People team. We are pleased with the engagement and the development opportunities the ERSGs have afforded our employees: “AoB provided a safe space to embrace our identities, celebrate our cultures, bring awareness to issues in our communities, and empower us to speak up and share our perspective and experiences with the company - something I used to shy away from or dismiss. It was powerful to connect with peers in this way, and to see people across the organization listen, support, and participate in the unique and diverse cultures we shared.” - Pamela Do, Senior Manager Talent Development who served on the leadership team for Asians of Betterment “Being the President of Black at Betterment was one of my greatest opportunities at Betterment. At a time when the rest of the world was really opening their eyes to the daily experiences of BIPOC—and we ourselves were being pushed to our limits—Black at Betterment was able to provide community, solace, and celebration of our collective and individual identity. Being able to advocate for Black employees and knowing we had voices, empathy, and understanding in the rooms where change happens is something I am constantly grateful for. ” – Dan Bound-Black, Black at Betterment, President ‘21 “This experience was a wonderful way to create and strengthen relationships with a diverse group of employees across the Betterment organization. I found it to be a valuable exercise in helping grow and nurture a team of leaders that was facing many of the typical challenges one would expect on any team trying to get things done. I am grateful to the entire team for welcoming me into their conversations and both taking my feedback seriously and also pushing back when they disagreed. I believe they helped me grow as a leader and equipped me to help ensure Betterment continues on its journey to becoming a more inclusive organization." - Mike Reust, President of Betterment who served as Exec Champ to Black at Betterment Conclusion We’re proud of the progress we’ve made over the past 18 months to scale our diversity and inclusion efforts and increase representation of People of Color and women at Betterment. Our journey is a testament to the commitment and focus across the team and our community. We’re looking forward to building on the strong foundation we’ve laid so far to continue to make Betterment a place where everyone can do their best work and where all identities are reflected and appreciated. If this sounds like a place where you’d like to work, check out our careers page!