Robo advisor WealthSimple raises $51m in new funding

By Emily Nicolle on 21st February 2018

Robo-Advice

The Canadian export is celebrating its recent success by aiming for the stars.

The Canadian export is celebrating its recent success by evolving further.

After closing an impressive 2017, digital wealth manager Wealthsimple has raised $51m (USD) from the Power Financial group, bringing its total investment in the firm to $131m.

The Canadian-based robo advisor now operates in the United States and the United Kingdom after expanding abroad last year, and currently manages roughly $1.45bn for over 65,000 clients.

"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 of 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."

Its clientele is opening up to an increasingly younger demographic, with 80 per cent of investors aged under 45 and 40 per cent joining as first-time investors. The firm has said it hopes to use the new capital to further accelerate its growth through the exploration of new product offerings, and an expansion of its B2B platform.

Wealthsimple launched a new suite of “socially responsible” portfolios earlier this year, as it targets a growing trend among investors of avoiding companies which don’t pertain to enivronmental, social and governance criteria.

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