Seattle crypto investment startup Makara to be acquired by Betterment

Seattle-based cryptocurrency investing startup Makara will be acquired by Betterment, a digital financial advisory company headquartered in New York City.

The companies are not disclosing the financials of the deal, which is expected to close later this quarter. A Betterment spokesperson said Makara has 20 employees, all of whom will join Betterment when the deal closes.

"Crypto is here to stay, and Betterment wants to live our promise of long-term diversification and to provide our customers with the best variety of assets in the marketplace," Sarah Levy, Betterment's CEO, said in a news release. "Makara is unique in offering consumers managed crypto portfolios combined with the guidance and ease-of-use that have defined Betterment. Makara is to crypto today what we are to traditional investing, since pioneering robo-investing a decade ago."

The spokesperson added that Makara will maintain its own brand for the time being, but the companies will work on a service for the Betterment platform in the coming months.

Makara launched in 2020. The startup provides an automated investing service that specializes in cryptocurrencies. According to Makara, users answer a few questions, and its technology automatically recommends the best corresponding crypto investments. There is a $50 minimum to begin investing through Makara.

Betterment, meanwhile, was founded in 2010. The company is well-known in the field often called "robo-advising," or digital investing platforms that automatically create a portfolio based on users' goals. Betterment has become a more full-service banking platform over the years, and it now offers a checking account and IRAs.

The company raised $160 million between equity and a credit facility in September, pushing Betterment's value to $1.3 billion.

"We are thrilled to be joining Betterment," Jesse Proudman, Makara's co-founder and CEO, said in a news release. "We developed Makara to bring an easy and accessible long-term investing approach to cryptocurrencies. Combining our crypto expertise with Betterment's scale will accelerate the growth of the platform with both retail investors and financial advisors."