Fast-growing investing service secures new funding from Power Financial Corporation group
TORONTO, Feb. 21, 2018 /PRNewswire/ - Wealthsimple has raised a $51 million ($65M CAD) investment from the Power Financial group of companies, bringing their total investment in the company to $131 million ($165M CAD). The millennial-friendly digital investing service now manages approximately $1.45 billion for over 65,000 clients in Canada, the United States, and the United Kingdom.
"Wealthsimple had an incredible 2017. We expanded to our first international markets, and tripled the number of clients who invest with us," said Michael Katchen, CEO and co-founder, Wealthsimple. "We're looking forward to building on this momentum, making an even better product for even more clients in the months and years ahead."
Wealthsimple makes it easy for anyone to invest like an expert — no matter who they are or how much they have — with no minimum account size, low fees, and simple digital tools. Clients can sign up through Wealthsimple's award-winning website or app, and be invested in a personalized, diversified portfolio in minutes. The brand has been recognized for its innovative approach to design and technology — with back-to-back Webby Awards for its website, a Directors Guild of America award for its Super Bowl ad, and a Magazine about money that is actually fun and interesting to read. It's an approach that has resonated with a new generation of investors: 80% of Wealthsimple's clients are under 45, and 40% are first-time investors.
The company will use the new capital to evolve its investing product, explore new financial product offerings, accelerate growth across its three markets, and further develop its B2B platform.
"We at Power Financial are proud to be Wealthsimple's greatest champion as it becomes a global leader in marrying unique digital technology with great content and service," said Paul Desmarais III, Chairman of Wealthsimple and Senior Vice-President at Power Financial Corporation. "Wealthsimple is delivering the benefits of financial advice to more and more people to help them create a better future."
Wealthsimple has a strategic partnership with the Power Financial group of companies, which have invested $165 million in capital since 2015. Headquartered in Canada, with offices in London, Toronto and New York, Wealthsimple launched in the United States in January 2017.
Wealthsimple is an online investment manager that combines user-friendly digital tools and personal financial advice to make smart, automated investing available to everyone. With no minimum account size and low fees, Wealthsimple makes investing simple, accessible, affordable and personalized. Available in the U.S., the U.K., and Canada, Wealthsimple was founded by a team of financial experts and technology entrepreneurs, and is backed by the Power Financial group of companies. Power Financial Corporation (TSX: PWF) is a diversified management and holding company that has interests, directly or indirectly, in companies in the financial services sector in Canada, the United States and Europe. To learn more, visit www.wealthsimple.com.