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Tag: Finance

  • How to Get a ₹10 Lakh Business Loan: A Complete Guide

    Running a business successfully requires both vision and capital. Whether you want to expand operations, upgrade equipment, or manage working capital, access to timely finance plays a crucial role. If you are a business owner looking for an INR 10 Lakh Business Loan, understanding the process and eligibility can help you secure funds easily and manage the loan responsibly.

    In this guide, we explain everything you need to know about getting a Business Loan, including eligibility, documentation, and how to apply online.

    What Is a Business Loan?

    A Business Loan is a financial product designed to provide funding for business-related needs such as expansion, equipment purchase, or operational expenses. These loans are often collateral-free, which means you do not need to pledge any property or asset to secure the loan.

    In India, digital platforms have made applying for a Business Loan easier than ever. You can now submit your application online, upload necessary documents, and receive funds directly into your bank account once approved.

    For entrepreneurs and small business owners, an INR 10 Lakh Business Loan can be a great way to meet short-term or long-term business goals.

    Key Features of a Business Loan

    Before applying, it is important to understand the main features of a Business Loan:

    • Loan Amount: You can get financing starting from INR 7 Lakh up to INR 1 Crore, depending on your business needs and eligibility.
    • Interest Rate: Attractive rates starting from 15%* per annum.
    • Tenure: Flexible repayment tenure of up to 60 months*, giving you enough time to manage repayments smoothly.
    • Collateral-Free: No need to mortgage any property or asset to get the loan.
    • Quick Disbursal: Funds are credited directly to your account after verification and approval.
    • Simple Documentation: Minimal paperwork with fully digital processing.
    • Overdraft Facility: Access extra funds conveniently when needed.

    These features make Business Loans a reliable funding option for entrepreneurs across industries.

    Eligibility Criteria for a Business Loan

    Lenders use specific criteria to assess your eligibility before approving the loan. Here’s what you need to qualify:

    • Age: Applicant must be between 24 and 65 Years*.
    • Business Vintage: The business should have been operational for at least 3 Years.
    • Annual Turnover: Between INR 80 Lakh and INR 500 Crore.
    • Credit History: Minimum of 6 months of credit history.
    • Ownership: The applicant should own the residence or office premises.

    Maintaining a clean credit record and a consistent income flow increases your chances of getting an INR 10 Lakh Business Loan.

    Documents Required for a Business Loan

    Before applying, prepare the following documents required for business loan to ensure a smooth process:

    KYC Documents

    • PAN Card of the entity and owners.
    • Entity registration documents, such as GST registration, Shop Act, or Certificate of Incorporation.

    Identity and Address Proof

    • Aadhaar Card, Voter ID, Driving Licence, or Passport.
    • Utility bill or rent agreement for address verification.

    Financial Documents

    • Last 2 Years’ audited financial statements and Income Tax Returns.
    • Last 12 months’ bank account statements.
    • Latest 6 months of GST returns.

    Ownership Documents

    • Utility bill, sale deed, or property tax receipt as proof of business ownership.

    Submitting complete and accurate documentation helps in faster processing and verification.

    Fees and Charges for Business Loan

    Before you apply, it is important to know about the applicable fees and charges.

    Charge Type

    Details

    Processing Fees

    Up to 3% of sanctioned amount + applicable taxes

    Late Payment Charges

    2% per month on overdue EMI*

    Prepayment Charges

    After 6 months of disbursement – 2% + taxes on prepaid amount

    Foreclosure Charges

    After 6 months – 5% + GST on outstanding amount

    Repayment Swap Charges

    ₹ 500 + taxes (only for branch visits)

    Legal Fees and Charges

    Up to ₹ 50,000 + taxes

    Recovery Charges

    Up to ₹ 15,000 + taxes

    Knowing these charges in advance helps you plan your repayment more effectively.

    How to Apply for a Business Loan Online?

    Applying for a Business Loan is simple and can be completed online in a few steps.

    Step 1: Apply Online

    Visit the lender’s website and go to the Business Loan section. Click on “Apply Now” and fill in details like your business name, annual turnover, and required loan amount.

    Step 2: Document Submission

    Upload the required documents such as KYC proofs, financial statements, and bank account details. Ensure that all documents are recent and correctly scanned.

    Step 3: Verification Process

    The lender verifies your application, documents, and credit score. Some lenders may contact you for additional details or to confirm business information.

    Step 4: Approval and Disbursal

    Once approved, the loan amount is credited directly into your registered bank account. Disbursal may take a few hours or up to two working days, depending on the lender’s internal process.

    Benefits of a Business Loan

    1. Access to Immediate Funds: A Business Loan gives you access to capital that can be used for various business purposes.
    2. Flexible Repayment Options: Choose a repayment tenure that suits your cash flow, ranging up to 60 months*.
    3. Collateral-Free: No need to mortgage any asset, making it ideal for small businesses.
    4. Digital Convenience: Apply online and track your loan application easily.
    5. Business Growth: Use the funds for expansion, inventory purchase, or upgrading business infrastructure.

    How an INR 10 Lakh Business Loan Can Help Your Business?

    An INR 10 Lakh Business Loan can significantly support your business goals. Here’s how:

    • Expand Operations: Open a new branch, hire more staff, or invest in marketing.
    • Purchase Equipment: Upgrade machinery or tools to increase production efficiency.
    • Manage Working Capital: Maintain smooth operations during lean periods.
    • Invest in Technology: Modernise systems and software to improve productivity.
    • Meet Seasonal Demands: Build inventory to cater to high-demand periods.

    Proper utilisation of the loan can help strengthen your business and improve profitability over time.

    Conclusion

    Securing an INR 10 Lakh Business Loan can be the stepping stone your enterprise needs to scale new heights. By maintaining proper financial discipline, preparing the right documents, and choosing a trusted lender, you can ensure a smooth borrowing experience.

    Financial institutions like L&T Finance offer Business Loans with competitive interest rates starting from 15%* per annum, flexible repayment tenure of up to 60 months, and a collateral-free process. With a seamless digital application journey and transparent charges, L&T Finance supports entrepreneurs in achieving sustainable business growth.

  • To Fill the Gap in Green Financing, TapFin Introduces GoGreen Capital

    In order to provide funding options for cleantech companies, fintech company TapFin has launched a new NBFC subsidiary, GoGreen Capital. According to a statement from the fintech startup, the NBFC will provide tailored finance options for sustainability-driven projects to startups, small enterprises, original equipment manufacturers (OEMs), engineering, procurement, and construction (EPC) firms, and others. GoGreen Capital will initially concentrate on serving borrowers in the solar, battery circulatory, and clean mobility industries. According to a release from TapFin, “GoGreen Capital will offer leasing solutions, business loans, and commercial asset loans that are specific to the clean mobility, battery, and solar ecosystems.” TapFin, a fintech startup founded in 2023 by Aditya Singh, Pramod Marar, and Terniza Berry, provides business loans, supply chain financing, insurance, and other services for the cleantech industry. Speaking to a media outlet, Marar said that the company requested an NBFC licence after obtaining a $4 million seed round from Elevar Equity the previous year. The company eventually received the NBFC licence. In the past few months, the brand has been working to establish the budget, systems, personnel, policies, procedures, and, of course, money.

    How NBF will Benefit TapFin?

    To provide loans to borrowers, the NBFC will make use of TapFin’s data-driven underwriting and contextual credit evaluations. These evaluations are founded on non-traditional insights, including battery analytics, fleet operations, ecosystem alliances, and vehicle usage patterns. With the establishment of the NBFC, TapFin will be able to lend money from its own books, build an asset base, and lessen its reliance on outside platforms. In order to reach tier-II and tier-III cities, GoGreen Capital is also seeking to partner with financial institutions to broaden its green financing options, including co-lending opportunities. In addition, the startup announced that GoGreen Capital will leverage ‘TapFin Hub’, which is TapFin’s proprietary platform. This platform’s core capabilities include OEM and supplier whitelisting, real-time asset management and monitoring through advanced AI models, portfolio valuation, and disposal monetisation. Together, these features will enable GoGreen Capital to achieve a more innovative and expedited go-to-market.

    India’s Fintech Startup Witnessing Decline in Funding

    Fintech funding has decreased in the first quarter of 2025 due to macroeconomic difficulties and geopolitical headwinds (January-March). A total of $366 million was raised in the first quarter of 2025, which is 35% less than the $571 million raised in the same quarter the previous year. According to market research platform Tracxn, the fintech industry raised a comparable amount of money ($365 million) in Q4 2024. Early-stage funding decreased by 41% from $157 million raised in Q4 2024 to $92.6 million in the March quarter, a 56% fall from $210 million in Q1 2024. $45.9 million was raised for seed-stage finance, which is 39% less than the $75.5 million raised in Q1 2024 and 16% less than the $54.6 million raised in the preceding quarter.

  • Best AI Finance Tools for Financial Professionals

    A world where financial professionals can predict market trends, analyse complex data, and make informed decisions with the click of a button! We’re not talking about science fiction – this is the reality of AI in finance today. As we step into 2024, the corridors of financial technology are growing at breakneck speed, with these finance tools leading the charge.

    These cutting-edge solutions are not changing the game. Infact, they’re redefining it entirely. In this article, we’ll explore the cream of the crop when it comes to AI financial analysis tools. Even if you’re looking to enhance your risk analysis, improve customer retention, or gain deeper insights into stock market prediction, these tools are set to change the world upside when it comes to how financial professionals work in the coming year.

    ChatGPT for Financial Analysis
    Tableau for Data Visualisation
    RapidMiner for Predictive Analytics
    Microsoft Power BI for Business Intelligence
    DataRobot for Automated Machine Learning

    ChatGPT for Financial Analysis

    Website www.openai.com
    Rating 4.7
    Free trial Yes
    Platforms supported Web, IOS/Android
    ChatGPT - Best AI Finance Tools for Financial Professionals
    ChatGPT – Best AI Finance Tools

    ChatGPT has emerged as a powerful tool for financial analysis, offering a range of capabilities that are transforming how professionals approach their work. This AI-powered assistant can process vast amounts of financial data in a fraction of the time it would take a human analyst, making it an invaluable asset for those looking to gain quick insights and make informed decisions.

    Financial Analysis Capabilities

    ChatGPT is an absolute breeze when analysing complex financial documents, including balance sheets, cash flow statements, and earnings reports. Through natural language processing, it can extract relevant information and provide concise summaries, helping analysts quickly grasp the essential points. This AI finance tool can also identify trends and patterns in market data that might otherwise be overlooked, offering a more comprehensive view of the financial circle.

    Impact on Financial Decision-Making

    The impact of ChatGPT on financial decision-making is significant. It can generate financial forecasts by training on historical data, enabling more accurate predictions of future trends. This capability is handy for portfolio management, where real-time analysis of market movements can inform investment strategies. Moreover, ChatGPT can assist in risk assessment by analysing various data sources, including credit histories and financial statements, to provide a more holistic view of potential risks.

    Best Practises for Using ChatGPT in Finance

    To maximise the benefits of ChatGPT in finance, it’s crucial to follow best practices. Firstly, ensure that the data used to train the model is accurate and up-to-date. Secondly, you should use ChatGPT as a complementary tool rather than a replacement for human expertise. While it can process information quickly, human judgement remains essential in interpreting results and making final decisions. Lastly, regularly update and refine the model to keep pace with changing market conditions and regulatory requirements.

    Plan Pricing
    ChatGPT Plus $20/Month

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    Tableau for Data Visualisation

    Website www.tableau.com
    Rating 4.4
    Free trial Yes
    Platforms supported Web, IOS
    Tableau - Best AI Finance Tools for Financial Professionals
    Tableau – Best AI Finance Tools

    This AI finance tool can process vast amounts of complex data, turning it into eye-catching and interactive visualisations that help analysts quickly grasp essential points and make informed decisions.

    Financial Data Visualisation Features

    Tableau offers a variety of chart types, including bar charts, line charts, scatter plots, and maps, allowing users to create dynamic dashboards and visualisations. These features enable financial professionals to understand data in depth, drill into specific data points, and create hierarchies. Tableau’s flexibility in connecting to various data sources, including cloud-based platforms, makes it a versatile choice for financial analysis.

    Integration with AI

    The integration of AI in Tableau has further enhanced its capabilities. Tableau Agent, powered by generative AI and statistical analysis, helps users prepare data sources, create visualisations, and tell stories with data more efficiently. This AI assistant automates time-consuming analytics processes, accelerating data-driven decision-making across the entire analytics journey.

    Benefits for Financial Professionals

    Financial professionals can leverage Tableau to create dynamic, interactive, and automated financial reports such as P&L statements, balance sheets, and cash flow statements. The tool’s data blending and drill-down features help in determining data variations and patterns within organisations. Tableau’s ability to connect numerous data sets and draw up relevant financial information makes it an invaluable asset for making important financial and business decisions.

    Plan Pricing
    Tableau Creator $75/Month per user
    Tableau Explorer $42/Month per user
    Tableau Viewer $15/Month per user
    Enterprise Creator $115/Month per user
    Enterprise Creator $70/Month per user
    Enterprise Viewer $35/Month per user

    RapidMiner for Predictive Analytics

    Website www.altair.com
    Rating 4.6
    Free trial Yes
    Platforms supported Web
    RapidMiner - Best AI Finance Tools for Financial Professionals
    RapidMiner – Best AI Finance Tools

    RapidMiner is known for offering a comprehensive set of predictive analytics capabilities. This platform simplifies the process of extracting data from diverse sources, cleaning it, and incorporating it into various predictive modelling workflows.

    AI-Powered Predictive Models

    RapidMiner’s AI Studio supports model development by data scientists, providing a user-friendly interface and automation features that streamline the ETL process. This makes it accessible to users with varying levels of technical expertise. The platform’s ability to handle unstructured data and produce actionable insights swiftly makes it a preferred choice for organisations focused on efficient data mining and aggregation.

    Financial Forecasting Capabilities

    For financial forecasting, RapidMiner offers various tools and techniques. Users can create models for individual series or aggregate data for broader predictions. The platform supports the use of windowing operators for both training and testing sets, which is crucial for forecasting multiple time periods ahead. Additionally, lag series and moving average operators are particularly useful for volatility forecasting in stock market prediction.

    Risk Assessment Tools

    RapidMiner provides robust risk assessment tools, making it valuable for financial professionals. The platform’s ability to process vast amounts of data quickly allows for comprehensive risk analysis. Users can make the most out of RapidMiner’s machine learning algorithms to identify patterns and trends that might indicate potential risks, enhancing decision-making processes in financial analysis.

    Plan Pricing
    Professional $7,500/Month per user
    Enterprise $15,000/Month per user
    AI Hub $54,000/Month per user

    Microsoft Power BI for Business Intelligence

    Website www.microsoft.com
    Rating 4.5
    Free trial Yes
    Platforms supported Web, IOS/Android
    Microsoft Power BI - Best AI Finance Tools for Financial Professionals
    Microsoft Power BI – Best AI Finance Tools

    This powerful platform enables financial professionals to transform raw data into actionable insights, allowing them to make informed decisions and drive business success.

    AI-Enhanced Financial Reporting

    Power BI’s AI-driven capabilities have revolutionised financial reporting. The platform incorporates advanced analytics and machine learning algorithms to automate data analysis and uncover hidden patterns. This feature allows financial professionals to generate in-depth reports with ease, saving time and reducing the risk of human error. Power BI’s natural language processing capabilities enable users to ask questions in plain English, making data exploration more intuitive and accessible.

    Real-Time Analytics

    Providing real-time analytics is one of the standout features that Power BI possesses. This capability is crucial for financial professionals who need to monitor market trends and make split-second decisions. Power BI allows users to connect to various data sources and refresh data automatically, ensuring that dashboards and reports always reflect the most current information. This real-time functionality is particularly valuable for stock market prediction and risk analysis in the world of finance.

    Plan Pricing
    Base Free
    Power BI Pro $10.00/Month
    Power BI Premium Per User $20.00/Month
    Power BI Embedded Variable

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    DataRobot for Automated Machine Learning

    Website www.datarobot.com
    Rating 4.4
    Free trial Yes
    Platforms supported Web
    DataRobot - Best AI Finance Tools for Financial Professionals
    DataRobot – Best AI Finance Tools

    DataRobot has emerged as a powerful AI finance tool, revolutionising the way financial professionals approach machine learning. This platform simplifies the process of building and deploying models, making it accessible to both data scientists and business users. DataRobot’s automated machine learning capabilities enable rapid model development and deployment, reducing time to value for financial institutions.

    AI-Driven Financial Modelling

    DataRobot’s AI-driven financial modelling capabilities are transforming how professionals approach complex financial tasks. The platform’s automated machine learning features allow users to quickly build and deploy models for various financial applications, including stock market prediction and risk analysis. DataRobot’s ability to handle unstructured data and produce actionable insights swiftly makes it a preferred choice for organisations focused on efficient data mining and aggregation in the financial sector.

    Fraud Detection Capabilities

    In the realm of fraud detection, DataRobot shines as a robust tool for financial professionals. The platform’s advanced analytics and machine learning algorithms can process vast amounts of data to identify patterns and trends indicative of fraudulent activities. This capability is particularly valuable in the insurance industry, where DataRobot has been used to improve the accuracy of predicting fraudulent claims. By leveraging historical cases of fraud and their associated features, DataRobot can apply learnings to new claims, assessing whether they share characteristics of known fraudulent patterns.

    Investment Strategy Optimisation

    DataRobot’s investment strategy optimisation features provide financial professionals with powerful tools to enhance their decision-making processes. The platform’s ability to analyse complex financial data and generate insights allows for more informed investment strategies. Its machine learning models can pick up patterns from historical data to accurately predict future consumer behaviour, superseding traditional analytics for population segmentation and filtering. This capability is particularly useful for financial institutions looking to optimise their investment portfolios and maximise returns while managing risk effectively.

    Plan Pricing
    Essentials Custom
    Business Critical Custom

    Conclusion

    As we wrap up our journey through these tools, it’s clear that 2024 is shaping up to be a transformative year for financial professionals. The future of finance is undoubtedly intertwined with AI, and staying ahead of the curve is crucial for success in this field. If you want to get to the next level with AI, why not dive into StartupTalky’s legacy newsletter, ‘Smell The Coffee‘? It’s packed with quality case studies, news, insights, and business model decoding sessions that’ll keep you at the forefront of AI innovation. As we continue to glide forward in this exciting new era, one thing is certain: the tools we’ve discussed today are just the beginning of a revolution that will shape the financial world for years to come.

    FAQ

    What is the future of Ai in the finance industry?

    The future of AI in finance will enhance risk assessment, provide personalized customer experiences, and enable automated trading. It will improve fraud detection and regulatory compliance while streamlining operations. Overall, AI will transform the financial industry by increasing efficiency and reshaping how institutions interact with clients.

    Can Ai replace financial professionals?

    AI can automate routine tasks in finance, but it won’t replace financial professionals entirely. Human skills like strategic thinking and relationship management are irreplaceable. Instead, AI will enhance decision-making, allowing professionals to focus on higher-value tasks.

    How is AI used for finance?

    AI tools work hand in hand with finance professionals by handling data analysis and automating routine tasks. This partnership frees up time for experts to focus on making strategic decisions and building relationships with clients, ultimately improving efficiency and the quality of service they provide.

    Can AI make financial models?

    Yes, AI can create financial models by analyzing large datasets, identifying patterns, and automating data processing. It enhances accuracy and efficiency, enabling finance professionals to generate better forecasts and insights.

  • Betterment: A High-Performance Investing and Saving App

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Betterment.

    When it comes to investing, almost every individual expects not to know what he is doing. People expect to be confused about which investment option to consider simply because the traditional players have made it confusing. However, just because traditional players have designed the financial system in a certain way, it doesn’t mean it’s right.

    Betterment is an America-based company that came forward to design the financial industry into something better. It helps people manage their money and invest it profitably. Read on to learn more about Betterment, including its founders, startup story, challenges, products and services, funding, growth, and more.

    Betterment – Company Highlights

    Company Name Betterment
    Headquarters New York, New York City, United States
    Sector Wealth Management
    Founders Jon Stein and Eli Broverman
    Founded 2008
    Valuation $1.3 billion (2021)
    Website Betterment.com

    Betterment – About
    Betterment – Industry
    Betterment – Founders and Team
    Betterment – Startup Story
    Betterment – Mission and Vision
    Betterment – Logo
    Betterment – Business Model
    Betterment – Revenue Model
    Betterment – Products and Services
    Betterment – Challenges Faced
    Betterment – Funding and Investors
    Betterment – Mergers and Acquisitions
    Betterment – Growth
    Betterment – Partners
    Betterment – Awards and Achievements
    Betterment – Competitors

    Betterment – About

    Betterment is an app-based independent robo-advisor that provides digital investment, retirement, and cash management services. The investing and saving application offer tools for spending, saving, and developing customized plans for the future. Moreover, users often focus on investing in cash reserves and ETFs to meet their long-term financial goals.

    Betterment – Industry

    Wealth management is an investment advisory service combining investment and financial counseling to address clients’ needs. The industry generally involves providing strategies to achieve financial goals, plan for retirement, estate, and legal planning, portfolio management, etc.

    The global size of the wealth management market was estimated at $1.25 trillion in 2020 and is forecasted to reach $3.43 trillion by 2030, with a CAGR of 10.7%. Rapid demand for alternative investments, including commodities, private equity, intellectual property act, hedge funds, real estate investment trusts, etc., is the key driving force of the global wealth management industry. However, Covid-19 hurt the industry due to economic slowdown, highly volatile markets, and unpredictable global financial sectors.

    JP Morgan Chase & Co., Bank of America Corporation, Goldman Sachs, Julius Baer Group, and Citigroup are some key players in the global wealth management industry.

    Betterment – Founders and Team

    Jon Stein and Eli Broverman are the co-founders of Betterment.

    Jon Stein

    Jon Stein- Co-founder and Board Member, Betterment
    Jon Stein- Co-founder and Board Member, Betterment

    Jon Stein attended Harvard University for BA in Economics and Premedical Studies and Columbia Business School for MBA in Entrepreneurship. He is the Board Member of Demin and Valora and Advisor to the CEO at Solve Finance, SpinWheel, Setpoint.io, Concreit, Parallel Markets, and Treasury Interactive.

    Jon co-founded Betterment and worked as its CEO till 2020. At present, he is the Founder and Board Member of Betterment.

    Eli Broverman

    Eli Broverman - Co-founder, Betterment
    Eli Broverman – Co-founder, Betterment

    Eli Broverman attended Brown University for AB in Chemistry and New York University School of Law. He is the Executive Board Member at BitFinance and Adviser at Bloom Credit, Good Money, and Masterworks. Eli co-founded Betterment and Treasury. Moreover, he is on the Board of Directors at Betterment.

    Sarah Levy

    Sarah Levy – CEO, Betterment

    Sarah Levy completed her graduation in Economics from Harvard University and post-graduation in MBA from Harvard Business School. She worked as Chief Operating Officer at Nickelodeon and Viacom. Currently, Sarah is the Board Member at Funko and Chief Executive Officer at Betterment, leading a team of around 400 employees.

    Betterment Team

    • Sarah Levy – CEO
    • Raoul Bhavnani – Chief Communications Officer
    • Peter Lorimer – Chief Financial Officer
    • Kim Rosenblum – Chief Marketing Officer

    Betterment – Startup Story

    Jon Stein and Eli Broverman co-founded Betterment in 2008. Jon experienced bad investing behavior when he invested his money via seven different brokerage accounts. He constantly monitored his accounts and tried to time the market. But it resulted in wasting time, taxes, and transaction costs.

    He wanted a service that could tell him what to do with his money and then do the same for him. But Jon realized that he needed to build this kind of service himself. He started focusing on the front end of Betterment, and his roommate Sean Owen, a software engineer, built everything, including Apache and Tomcat servers, MySQL database, and Java application for the website. Next, Jon needed to understand the regulatory landscape. It’s when he started a conversation with Eli Broverman, who was a securities attorney.

    Jon and Eli met over a weekly poker game, and Eli was interested in commencing his own company. They both had lunch at a Dominican restaurant on Amsterdam Avenue, sketched a working arrangement, and suddenly were in business together. Sean, Jon, and Eli met Ryan O’Sullivan, who grew a retail clothing line called Le Tigre and sold it to Kenneth Cole. He joined Betterment as a BD partner.

    In August 2008, Betterment got its four founding members, Jon, Seal, Eli, and Ryan. On January 29, 2008, the parent company for Betterment LLC and Betterment Securities, Betterment Holdings, Inc, was established in Delaware. After Ryan and Sean left the company as founding members, Jon and Eli worked on Betterment for a year.

    And on May 26, 2010, Betterment was launched at the first-ever TechCrunch Disrupt and won the ‘Biggest New York Disruptor’ award. Within 24 hours, the company attracted around 400 customers. 800,000+ customers trust the company, and it has $36+ billion as assets under management in 2023.

    Betterment – Mission and Vision

    Betterment aims to help people live better by growing their money. Its mission is to provide the best possible solution to the question, “What should I do with my money?”

    Betterment Logo
    Betterment Logo

    Betterment released a new logo in November 2021 with an icon representing a rising sun.

    Betterment – Business Model

    Betterment is a robo-advisor that automatically determines the investor’s asset allocation based on financial goals, preferences, and risk appetite. First, an investor needs to tell the company what he wants to do with his money. Next, Betterment provides some recommendations and sets up an ideal account.

    Once an investor’s account is built, the platform’s technology manages his money to help him earn more. Moreover, as the investor’s money grows and his priorities change, the platform evolves with ongoing advice and updates to help him stay on track. In last, the same investor can withdraw and use his money.

    Betterment – Revenue Model

    Betterment’s pricing for the “Investing” account is $4 monthly, and the “Crypto” account is 1% + trading expenses. The “Cash Reserve” and “Checking” accounts are offered for free.

    Moreover, the company generates the most revenue from the portfolio management fees it charges as a percentage of total assets under management (AUM). In addition, Betterment charges interchange fees and commissions from partner banks and earns by selling phone consultations.

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    Betterment – Products and Services

    With Betterment, users can open Investing, Crypto Investing, IRAs and 401(k)s, Roth IRAs, Checking High-yield cash, and Trusts accounts. Furthermore, it offers different types of Investments, including Portfolio Options, Socially Responsible Investing, Charitable Giving, Tax-Smart Investing, 401(k) Rollovers, and Retirement Income.

    The application provides access to multiple tools, such as Retirement Planning, All-in-one Dashboard, Track Your Goals, Rewards, and Refer-a-Friend Program.

    Betterment – Challenges Faced

    In April 2023, The Securities and Exchange Commission charged Betterment for material misstatements and omissions concerning its automated tax loss harvesting service (TLH), not providing clients with the notice of contract changes, and not maintaining certain necessary books and records. The company agreed to pay a $9 million penalty and distribute funds to affected clients as a settlement.

    Betterment – Funding and Investors

    Over 10 funding rounds, Betterment raised $435 million. Its latest funding round – Debt Financing Round, was conducted on September 29, 2021. 26 investors fund the company, including Kinnevik, Aflac Global Ventures, ID8 Investments, Citi Ventures, Bessemer Venture Partners, and Francisco Partners.

    Date Round Number of Investors Money Raised Lead Investor
    September 29, 2021 Debt Financing 2 $100 million ORIX Growth Capital
    September 29, 2021 Series F 12 $60 million Treasury
    April 30, 2021 Venture Round 2 – SharesPost Investment Management
    August 29, 2017 Secondary Market 1 – –
    July 21, 2017 Series E 4 $70 million Kinnevik
    March 29, 2016 Series E 8 $100 million Kinnevik
    February 17, 2015 Series D 5 $60 million Francisco Partners
    April 15, 2014 Series C 5 $32 million Citi Ventures
    October 3, 2012 Series B 4 $10 million Menlo Ventures
    December 1, 2010 Series A 9 $3 million Bessemer Venture Partners

    Betterment – Mergers and Acquisitions

    Betterment acquired 3 companies, including Gradvisor on February 23, 2022, Makara on February 8, 2022, and ImpulseSave on October 18, 2013.

    Betterment – Growth

    Betterment’s revenue surged to $100 million in 2021, marking a remarkable 30% growth compared to the previous year. Moreover, the company’s AUM grew by 50% in 2020 and 18.5% in 2021. However, its AUM growth slowed to 1.2% YOY in the second quarter of 2022. Betterment’s post-money valuation in 2021 stood at $1.3 billion.

    What is Betterment?

    Betterment – Partners

    Betterment has partnered with:

    • Goldman Sachs
    • BlackRock
    • Gemini
    • Benefits
    • capitalize
    • Bancorp, Inc.

    Betterment – Awards and Achievements

    Betterment is honored with many prestigious awards:

    • Named as one of the Best Robo-Advisors of 2022 by Morningstar and Wall Street Journal Buyside.
    • Kristen Carlisle, GM, won the “Excellence in Benefits” award by EBN in 2022.
    • “Best for Cash Management” award by Investopedia in 2020.

    Betterment – Competitors

    Some of Betterment’s main competitors are:

    • Schwab
    • Vanguard
    • Wealthfront
    • Personal Capital
    • Acorns
    • Chime
    • Robinhood

    FAQs

    What does Betterment do?

    Betterment is an app-based independent robo-advisor that provides digital investment, retirement, and cash management services.

    Who are the founders of Betterment?

    Jon Stein and Eli Broverman co-founded Betterment in 2008.

    Who is the CEO of Betterment?

    Sarah Levy is the CEO of Betterment.

    What is the pricing of Betterment accounts?

    Betterment’s pricing for the “Investing” account is $4 monthly, and the “Crypto” account is 1% + trading expenses. The “Cash Reserve” and “Checking” accounts are offered for free.