Toronto-based robo-advisor startup Wealthsimple has raised another $37m in a Series B round as it continues to grow its presence in the US market.
The funding comes just four months after the company closed $15m from Power Financial Corporation.
The new round comes once again from the Toronto-based Power Financial bringing its total investment into the asset management startup to $74m.
Wealthsimple began its roll out in the US at the start of the year, targeting inexperienced, millennials who are not actively thinking about wealth management.
It aims to appeal to young and first-time investors by offering no account minimum and offering the first $5,000 for free.
The company now counts more than C$1bn ($750m) in assets under management and more than 30,000 clients across the US and Canada – up from the 20,000 users it reported in January.
Wealthsimple CEO and founder Michael Katchen explained: “Many people don’t know where to start when it comes to investing, and Wealthsimple is looking to solve that problem by making investing a really simple experience.
“It’s been encouraging to see the response from both first-time and experienced investors, and we’re looking forward to continuing our growth in the US and Canada.”
The new investment takes PowerFinancial’s investments into FinTech startups to more than C$250m ($182m).
The firm’s senior VP and Wealthsimple chairman Paul Desmarais III commented: “Wealthsimple is making investing approachable to people at all stages of their financial lives, and in particular younger investors who have traditionally been underserved by the financial industry.
“With our biggest investment in Wealthsimple to date, we’re excited to see the company continue to grow and succeed.”
In addition to continuing its expansion around North America, the company will use the capital to develop its Wealthsimple for Advisors B2B platform.
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