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Automated Investment Service Betterment Raises $100 Million

"As we look ahead, we want to be the customer’s central financial relationship," says CEO Jon Stein.

[Photo: Flickr user Chris Brown]

Betterment, a startup that automatically invests funds on its users' behalf, announced on Tuesday that it has raised $100 million at a $700 million valuation.

The company now manages almost $4 billion on behalf of 150,000 customers, to whom it charges a .15% to .35% annual fee for the service.

CEO Jon Stein told Fast Company that his goal is to make Betterment the central dashboard from which users manage their finances, including non-investment aspects that the startup does not currently manage, like scheduling payments for rent.

Swedish investment company Kinnevik led the financing, which includes participation from previous investors Bessemer Venture Partners, Menlo Ventures, Anthemis Group, and Francisco Partners. Betterment has raised $205 million to date.