Betterment

Office address: 450 West 33rd Street, Floor 11, New York, NY 10001
Website: betterment.com
Year established: 2010
Company type: financial services
Employees: 450+
Expertise: automated investing, retirement solutions, high-yield cash management, IRAs, crypto investing, checking accounts, trusts, financial planning, tax optimization, socially responsible investing
Parent company: Betterment Holdings Inc.
Key people: Sarah Levy (CEO), Peter Lorimer (CFO), Mike Reust (president), Seth Rosenbloom (general counsel), John Mileham (chief technology officer), Johanna Richardson (chief product officer), Kim Rosenblum (chief marketing officer)
Financing status: venture capital-backed

Betterment is a digital investment advisor based in New York City with over $65 billion in assets. The company offers automated investing, high-yield cash accounts, IRAs, crypto portfolios, and checking services. More than 1 million customers use it for goal-based investing, tax-saving tools, and easy cash management.

History of Betterment

Betterment was established in New York City in 2008 by Jon Stein and Eli Broverman. Their goal was to make investing simple and affordable for everyone by using technology.

The company officially launched in 2010 at TechCrunch Disrupt New York, where it won the Biggest New York Disruptor award. It quickly attracted nearly 400 early customers.

Expanding services and growing influence

In the years that followed, Betterment introduced features like the Tax-Coordinated Portfolio in 2012 and the RetireGuide tool in 2014. The company expanded into advisor services with Betterment Institutional, later called Betterment for Advisors.

It then entered the workplace benefits market in 2016 with Betterment for Business. By 2017, the firm managed $10 billion in assets and offered socially responsible investing options.

Strategic acquisitions and market leadership

Betterment continued to grow as it acquired Makara in 2022 to expand into crypto portfolios. The firm also launched Crypto Investing later that year. The company acquired Marcus Invest accounts from Goldman Sachs in 2024, broadening its customer base.

In 2021, Betterment refreshed its brand with a new logo and identity. By 2024, the company managed over $45 billion in assets for more than 1 million accounts.

Betterment’s major developments

In 2025, Betterment acquired Ellevest’s automated investing business as the latter shifted its focus to wealth management for high-net-worth clients. This transfer brought new digital-first clients to Betterment, who valued features like joint accounts and cash options.

Later in the year, the firm announced the acquisition of Rowboat Advisors, a portfolio management software provider. The company seeks to enhance its offerings for independent advisors with tools for tax management and direct indexing.

Betterment products and services 

Betterment offers expert-built portfolios and a simple digital platform. Investors can choose from diverse, socially responsible, cash, or crypto options:

Stocks and bonds portfolios

• core: broad, low-cost ETF portfolio for long-term investing
• value tilt: globally diverse portfolio focused on undervalued US companies
• innovative technology: portfolio of high-growth potential companies in sectors like clean energy and robotics
• broad impact: invests in companies with strong ESG criteria for long-term performance
• climate impact: focuses on companies with lower carbon emissions and green projects
• social impact: invests in companies promoting diversity and minority empowerment
• Goldman Sachs smart beta: targets companies with potential to outperform the market, higher risk

Bonds and cash

• Blackrock target income: 100% bond portfolio with different income yields for market stability
• Goldman Sachs tax-smart bonds: personalized bond portfolio for higher-income investors seeking after-tax yield
• cash reserve: high-yield cash account with FDIC insurance up to $2 million

Crypto

• crypto ETF: automated ETF portfolio tracking Bitcoin and Ethereum market moves

Betterment is also known for its tax-saving strategies and automated portfolio management. Investors benefit from low-cost ETFs, transparent pricing, and automatic rebalancing with reinvested dividends.

Culture and corporate values

Betterment states its team is driven by helping people reach their goals, no matter the size. The company says it values different paths to “better” and focuses on making investing simple for everyone. Their core values include:

1. play to win: exceed expectations and celebrate wins
2. make an impact: drive positive change for customers
3. build better together: value all perspectives and trust each other
4. simplify: seek the most direct and effective path

The company also says that it invests in each employee’s career. Benefits include:

• health and wellness: medical, dental, vision, and One Medical subscription
• paid time off: vacation, rest days, and parental leave
• retirement and loan support: 401(k) match and student loan payment match
• equity: company equity grants for all staff
• office perks: snacks, drinks, and catered lunches at NYC headquarters
• inclusive health resources: fertility and LGBTQIA+ transition support
• community: employee affinity groups and hybrid social events

Betterment supports equity by offering open employee resource groups for all staff. The company says these groups host curated programs to help everyone feel valued and heard.

About CEO Sarah Levy and key people

Sarah Levy became CEO of Betterment in 2020. Before joining the company, Levy spent over 20 years at Viacom in senior leadership, including as COO. She began her career at Disney and is known for her experience in brand building, strategy, and operations.

The Betterment leadership team combines diverse skills and backgrounds to guide the company’s direction:

• Peter Lorimer is chief financial officer, with responsibility for business planning and financial strategy
• Mike Reust leads as president, where he focuses on technology initiatives and platform growth
• Seth Rosenblum is general counsel, ensuring compliance and managing all legal affairs
• John Mileham directs engineering and infrastructure in his role as chief technology officer
• Johanna Richardson advances user experience and product design as chief product officer
• Kim Rosenblum leads brand building and marketing efforts as chief marketing officer

Together, these executives oversee Betterment’s strategic, operational, and technological priorities, ensuring effective management across all areas of the business.

The future at Betterment

To expand advisor planning solutions in 2025, the company partnered with Envestnet, a major wealth technology provider. Betterment Advisor Solutions, the advisor-focused division of the firm, also joined with Vanilla, an estate planning technology firm.

They aim to offer advisors advanced estate planning tools and education. These partnerships help advisors provide more complete services and support the company’s focus on meeting growing client needs.

The company also conducted a study that revealed how different generations prefer to communicate with their advisors. Younger clients often want digital tools and transparency, while older clients may value more personal or traditional contact. By sharing these insights, the company enables firms to tailor their approach and use technology to better serve clients of all ages.