Wealthfront and MoneyLion are starting off 2018 with a bang.
Robo advice giant Wealthfront has raised $75m in a Series E fundraising round led by Tiger Global Management as it targets the millennial generation, whilst startup MoneyLion has brought home $42m in Series B funding.
Wealthfront is a software-based wealth management firm from California, offering a “low-cost and freemium model” for first time investors and recent expansion into other areas, such as financial planning and credit services.
The robo advisor doubled its assets under management (AUM) to over $9bn in 2017. This latest raise lends even more weight to the idea that Wealthfront will be heading towards an IPO in the near future.
Additionally, MoneyLion has now brought its total fundraising amount to $67m after its recent raise, led by growth equity investment firm Edison Partners.
MoneyLion aims its services at financially underserved middle class consumers, offering a variety of products from personal loans to robo advisory wealth management from inside its mobile app. The company has now originated over 250,000 loans to a total of 1.5m users.
Millennials and Generation X have proved popular target markets in digital wealth, with the majority of new robo advisors launched in 2017 aimed towards at least one of the two groups.
Wealthfront CEO, Andy Rachleff, said: “People under 45 now represent 85% of our clients. We believe our success with this group is based on our unique ability to optimise and automate our clients’ personal finances.
“This year we’ll be launching many new software-based capabilities that will provide value to our clients throughout their lifetime.”
Meanwhile Chris Sugden, managing partner at Edison Ventures, commented: “MoneyLion brings consumer credit and savings to the financial middle class.
"By delivering both a liability and wealth management digital solution on the same platform, MoneyLion brings a complete financial toolkit for consumers who earn less than $100,000.”
This article first appeared on Digital Wealth News.