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Betterment is ready to burn cash like its 2008 all over again with 2008 co-founder Eli Broverman leading a $60-million VC round to execute the plan he was credited with creating

The 13-year-old New York City startup is one year into a rebirth under new CEO Sarah Levy who is hiring like crazy and plans to invest aggressively in both B2B units -- for 401(k) and RIA custody.

Author Oisin Breen September 30, 2021 at 1:42 AM
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Sarah Levy has already generated enough fresh momentum at Betterment that fresh capital has followed.

Jeff Spears

Jeff Spears

September 30, 2021 — 11:26 AM
Looks like there isn’t a limit to pivots. Glad basketball rules don’t apply to wealth advisory.
Brian Murphy

Brian Murphy

October 1, 2021 — 4:08 AM
Interesting move - I'll be watching...but I think they're missing the opportunity in re-thinking the industry from an individual investor's perspective. The main reason Betterment & Wealthfront haven't captivated the middle market to the extent they could have is that the middle market has most of their investments within their 401(k) plans - it's the middle market's first exposure to investing. Selling 401(k) plans is and interesting, but overly crowded space. Providing advise across any plan is where one needs to head in order to see defensible long-term growth. If you can't provide advice on 70% of the middle market's liquid wealth, how valuable is a robo-advisor for the other 30%? (hint: Not very.)

Related Moves

Second Betterment exec departs as new CEO Sarah Levy orients to her first month on the job and is confronted by personnel matters

Chief operating officer Dustin Lucien is the latest to leave the New York City robo-advisor, one of at least eight positions open as it prepares a push across multiple business lines to ignite growth.

January 19, 2021 at 6:32 PM

Jon Stein ousts himself as Betterment CEO and taps Sarah Levy, who joins an exclusive club of top women executives, with a mission -- an IPO

The co-founder of the New York robo-advisor headhunted the ex-Viacom brass through Harvard professors on the down low to ostensibly scale operations.

December 8, 2020 at 5:27 PM


Mentioned in this article:

Betterment, LLC
Financial Planning Software
Top Executive: Jon Stein



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