About
Betterment: Pioneering the Future of Retirement Investing
Betterment is redefining wealth management with its innovative, automated investment platform designed to simplify personal finance and empower investors. As one of the first robo-advisors, Betterment delivers personalized, data-driven investment strategies tailored to individual goals. With its mission to make financial growth accessible and effortless for everyone, Betterment has become a trusted platform for millions seeking to optimize their savings, retirement plans, and financial well-being.
Founding Story: The Drive to Democratize Investing
Betterment was founded in 2008 by Jon Stein, a visionary entrepreneur with a background in economics and financial services. Frustrated by the complexity and high costs of traditional investing, Jon saw an opportunity to create a streamlined, user-centric solution for individual investors. Teaming up with Eli Broverman, a fintech expert with a strong legal and compliance background, Jon launched Betterment in 2010 at TechCrunch Disrupt.
Their goal was simple yet ambitious: to make investing smarter, easier, and more accessible for the everyday investor. Betterment’s proprietary algorithms and user-friendly interface set it apart, allowing individuals to set financial goals, such as retirement or wealth accumulation, and let the platform handle the rest. Today, Betterment is a leader in the fintech space, managing over $40 billion in assets and serving as a model for modern investment platforms.
Why Susquehanna Capital Invested in Betterment
At Susquehanna Capital, we invest in transformative technologies that make finance more inclusive, efficient, and scalable. Betterment perfectly aligns with our thesis of leveraging automation and data to disrupt traditional financial models. Here’s why Betterment stood out to us:
Visionary Leadership: Jon Stein and Eli Broverman built Betterment with a clear focus on consumer needs, using technology to simplify complex financial decisions. Their dedication to transparency, efficiency, and customer experience made Betterment a fintech pioneer.
Massive Market Opportunity: The wealth management industry, valued at over $100 trillion globally, is undergoing a seismic shift towards digital solutions. Betterment is uniquely positioned to lead this transition with its low-cost, automated offerings that appeal to both individual investors and institutions.
Scalability and Innovation: Betterment’s scalable platform, combined with its continuous innovation (e.g., SmartDeposit, tax-loss harvesting, and socially responsible portfolios), makes it a dominant player in the robo-advisory space.
Impressive Growth Metrics
Betterment’s growth underscores its leadership in the wealth tech industry. Key metrics include:
Assets Under Management (AUM): As of 2024, Betterment manages over $50 billion in assets, demonstrating strong trust and adoption from individual and institutional investors alike.
Customer Base: The platform serves more than 750,000 clients, ranging from first-time investors to experienced professionals, showcasing its broad appeal and user-centric design.
Retention and Growth: Betterment boasts an industry-leading customer retention rate of 92%, driven by its exceptional user experience and consistent returns.
Innovative Products: Betterment’s launch of Betterment for Business (401(k) management) and Betterment Cash Reserve (high-yield cash accounts) highlights its ability to diversify and address multiple financial needs.
Impact of Susquehanna’s Investment
As an early investor, Susquehanna Capital provided Betterment with the resources and strategic guidance needed to scale its operations and expand its product offerings.
Scaling Operations: Our investment enabled Betterment to enhance its backend infrastructure, ensuring a seamless user experience even as its client base grew exponentially.
Product Diversification: With Susquehanna’s input, Betterment expanded into new verticals, including retirement planning, HSA management, and cash management, creating a more comprehensive financial ecosystem for its users.
AI-Driven Innovation: Our fintech expertise helped Betterment incorporate advanced AI and machine learning to refine its portfolio optimization, improve tax-efficiency algorithms, and deliver hyper-personalized financial recommendations.
Brand Visibility: Leveraging our network, Betterment forged strategic partnerships with financial institutions and media platforms, solidifying its reputation as the go-to platform for automated investing.
Betterment: The Future of Wealth Management
Betterment’s success is a testament to the transformative power of technology in finance. By combining automation, data-driven insights, and a relentless focus on user experience, Betterment is empowering millions to achieve their financial goals with confidence. Susquehanna Capital is proud to support Betterment as it continues to lead the charge in democratizing investing and shaping the future of wealth management.