# Betterment: Jon Stein

- Show: [How I Built This](https://hardwarepodcasts.com/podcast/how-i-built-this)
- Published: 2018-10-29
- Length: 53m
- Page: https://hardwarepodcasts.com/podcast/how-i-built-this/2018-10-29-betterment-jon-stein

## Summary

Jon Stein, founder of Betterment, explains how he launched an online investment platform in the wake of the 2008 financial crisis, targeting everyday investors with a robo-advisor model. He details the bootstrapped early days, the critical TechCrunch Disrupt launch that forced a working product, and the subsequent fundraising from Bessemer Ventures. The episode also covers the operational challenges of managing withdrawals during a market crash and the complex renegotiation of equity with co-founders Eli Braverman and Sean Owen.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-10-29-betterment-jon-stein#t=0) Introduction: Jon Stein and Betterment
- [3:54](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-10-29-betterment-jon-stein#t=234) Family Influence and Early Career at 1st Manhattan
- [13:39](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-10-29-betterment-jon-stein#t=819) Identifying the Market Gap and Forming the Team
- [25:10](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-10-29-betterment-jon-stein#t=1510) The TechCrunch Disrupt Launch and Product Failures
- [34:23](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-10-29-betterment-jon-stein#t=2063) Fundraising from Bessemer Ventures and Initial Growth
- [39:30](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-10-29-betterment-jon-stein#t=2370) Co-founder Equity Renegotiation and Company Culture
- [49:48](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-10-29-betterment-jon-stein#t=2988) Postscript: Jerry Stellenberg and the P3 Pinball Machine

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)

## Most relevant to

early-stage companies

## Mentioned

- Betterment (company)
- 1st Manhattan Consulting Group (company)
- TechCrunch Disrupt (other)
- Bessemer Ventures (company)
- Vanguard (company)
- ING Direct (company)
- Eli Braverman (other)
- Sean Owen (other)
- Anthony Strout (other)
- Chris Sacca (other)
- Michael Arrington (other)
- P3 (product)
- Multimorphic (company)
- Jerry Stellenberg (other)

## Related episodes from other shows

- [80: Most of Us Are Human Beings](https://hardwarepodcasts.com/podcast/embedded-fm/2014-12-10-80-most-of-us-are-human-beings) (Embedded.fm)
- [Founder + Funder: Fundraising, Founder-Investor Fit, and Building the Next Big Breakfast Brand with Emily Groden of Evergreen and Brian Bernstein of Rich Products Ventures](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2026-06-20-founder-funder-fundraising-founder-investor-fit-and-building-the-next-big-breakf) (The Startup CPG Podcast)
- [Oddball's Path From Idea to Funding a Nationwide Target Launch](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2026-07-11-oddballs-path-from-idea-to-funding-a-nationwide-target-launch) (The Startup CPG Podcast)
- [Founder vs. Investor with Liz Zalman and Jerry Neumann](https://hardwarepodcasts.com/podcast/oxide-and-friends/2025-11-22-founder-vs-investor-with-liz-zalman-and-jerry-neumann) (Oxide and Friends)
- [An Interview with Ben Einstein](https://hardwarepodcasts.com/podcast/the-amp-hour/2018-08-06-an-interview-with-ben-einstein) (The Amp Hour)

## Citing this page

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