Building off of the $70mn funding round from the summer Betterment is now reportedly worth $1bn; the $1bn mark is significant as it denotes that a company is considered a unicorn; the valuation makes Betterment the first robo advisor to reach unicorn status; the company currently has over $11bn in assets under management. Source.
Betterment is looking to cater to their wealthier clients as they make portfolios more personalized; they launched the Betterment Flexible Portfolio which allows customers to shoes how assets weights are allocated; the typical Betterment client uses the asset weights set by the robo advisor, but this feature is meant to personalize the wealth clients portfolio; the move will try to help the company to position themselves as a full service firm that can cater to different levels of clientele, not just the younger investor. Source.
Schwab Intelligent Portfolios now boasts $24 billion assets under management and has hired Cynthia Loh, the ex-general manager of Betterment for Business; article reports on Schwab’s robo-advice platform growth, the cannibalization the firm saw with the offering, and what the new hire might mean for Schwab’s future plans. Source