Betterment IPO a Distant Future?
Betterment, one of the robo-advisor firms, raised an additional $70 million in financing this month (July 2017), according to Bloomberg and others. This values the company at $800 million, although such valuations on pre-market companies are largely meaningless. (Mental note: Write article about the so-called valuations of pre-exit startups.) Is this additional Betterment investment a good idea? It all depends on if they can shove a Betterment IPO down unsavvy investor throats. Check out how Betterment works at this Betterment review. According the article, the company has nearly $10 billion under management, which begs the question why they need to raise more money. Update: There is a new CEO. Is the new CEO’s purpose to get the company to an IPO? Check out my Digit app review. A money management company with $10 billion under management should be profitable. The need to raise another $70 million suggests the company is not profitable, and that begs the second question. At what level CAN the company be profitable? An can a Betterment IPO happen fast enough? If you’re interested in Betterment vs Wealthfront vs Robinhood vs Acorns vs Stash I have that here. Can Stand Alone Robo-Advisors Survive? Obviously, as an add-on …