Wealthsimple announces $750 million investment

Toronto-based financial advisor
Wealthsimple

has signed a CAD $750 million financing round at a post-money valuation of CAD $5 billion. The round is led by Meritech and Greylock. DST Global, Sagard, Iconiq, Dragoneer, TCV, iNovia, Allianz X, Base 10, Redpoint, STEADFAST, Alkeon, TSV, Plus Capital and others, plus celebrities Drake, Michael J. Fox, Ryan Reynolds, Kelly Olynyk, Dwight Powell, and Patrick Marleau are participating in the round. Concurrent with the funding, Meritech will appoint Max Motschwiller to the Wealthsimple board of directors.

Wealthsimple Trade, Canada’s first commission-free stock trading platform, has experienced rapid growth in the past 14 months as Canadians became increasingly interested in stock trading during the pandemic. The company launched Wealthsimple Crypto in August 2020, which allows users to securely buy, sell and hold cryptocurrency assets using a simple mobile app, and Wealthsimple Cash, a peer-to-peer money transfers app, in early 2021. Wealthsimple also offers automated investing, saving and spending, and tax filing. The company will use the new capital to further expand its market position, build out its product suite, and grow its team.

“The financial services industry is in the midst of a massive transformation, and our continued growth, and the interest from some of the world’s leading investors, proves that Wealthsimple is poised at the leading edge of that transformation in Canada. More than two million Canadians use Wealthsimple to grow their money, file their taxes, pay their friends, and make their financial lives better. This investment will fuel our growth so we can reach millions more and ensure that everyone has access to the simplest, most powerful financial products and services, no matter who they are or where they are in their financial lives.” – Mike Katchen, co-founder and CEO, Wealthsimple.

“We invest in companies with the potential to revolutionize industries and become enduring market leaders. Wealthsimple has been able to capture a generation of financial consumers in Canada with financial products that are markedly different than anything offered by the incumbents — simpler, more human, and built with the kind of technology that delivers an experience consumers want.” – Max Motschwiller, General Partner, Meritech.

“Wealthsimple has created a compelling lineup of financial products that delight users, resulting in rapid client growth and highly satisfied customers. The company has assembled an incredible team that is passionate about the mission of helping Canadians achieve financial freedom. We are thrilled to double down on our investment and be part of their journey.” – David Thacker, Partner at Greylock.

The post Wealthsimple announces $750 million investment appeared first on Coverager – Insurance news and insights.

Source: https://www.coverager.com/wealthsimple-announces-750-million-investment/

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