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Wealthfront has raised ~$100M and Betterment has raised ~$200M. If they are only burning $4M/year to grow as fast as they are, they are doing fantastically well
by teej 10y ago
Wealthfront has raised ~$100M and Betterment has raised ~$200M. If they are only burning $4M/year to grow as fast as they are, they are doing fantastically well. I suspect though that the author's burn rates are off by an order of magnitude.
- hn_throwaway_99 10y agoAgreed. I know the author was trying to be conservative, but I wouldn't be surprised if fully loaded employee costs were about double his estimates.
- krallja 10y agoAlso, both Betterment and Wealthfront have grown AUM since this article was written: https://news.ycombinator.com/item?id=13959061 https://news.ycombinator.com/item?id=13959061
- sulam 10y agoYeah, he's taking salary, and a conservative salary at that, as cost to the business. The cost to the business is generally much higher, 1.5x to 2x depending on benefits. He should probably double the number he's using.