19 September 2014

Automated investment service Wealthfront raises $35m

03 April 2014  |  884 views  |  0 Source: Wealthfront

Wealthfront is the world's largest and fastest-growing automated investment service (AIS). With more than $800 million in client assets under management, Wealthfront offers the most tax-efficient and low-cost index fund-based solution for long-term investors on the market.

Having grown more than 700% since the start of 2013, Wealthfront now provides service to clients across all 50 states and Washington, D.C., with client accounts ranging in size from $5,000 to over $10,000,000.

Wealthfront is on the leading edge of a much larger trend, one catalyzed by a new generation of younger investors. There are 90 million people in the millennial generation with an aggregate net worth of more than $2 Trillion. They have grown up with software and lived through two market crashes. They overwhelmingly seek an investment solution that is automated, index-based and low-cost. They are seeking an automated investment service.

An automated investment service combines world-class financial research with a modern cloud-based architecture to deliver both monitoring and management of your long-term investments at account minimums and costs that are a fraction of traditional approaches. Individual investors have long been shown to underperform the market due to a combination of high costs and behavioral finance errors. An automated investment service can provide every investor with a service that is rational, scalable and secure.

Most importantly, however, is that an automated investment service can manage your long-term investments 24/7 leaving you free to pursue the other things that matter to you; whether that be your family, your career, or your passions.

Investing for the Future
Disrupting an industry managing trillions of dollars requires partners who share our vision. Today, we're proud to announce we have closed our third round of institutional financing totaling $35 million from some of the best investors in technology. Index Ventures and Ribbit Capital led the round, joined by existing investors The Social+Capital Partnership, Greylock Partners and DAG Ventures. Also joining this round are a few new investors and technology leaders. We're flattered and excited that these extraordinary partners share our long-term vision.

This significant investment comes with a directed purpose. We believe that in the next 10 years everyone will have an automated investment service. We'll be using this new capital to invest in the people and technology required to scale, and by doing so accelerate the pace of new features and services to handle more than a thousand times the assets we manage today.

You Can Make a Difference
We are grateful to our clients, not only for your continuous input, feedback and insights but more importantly for your trust. In fact, our rapid growth could not have been possible without your referrals, both offline and online. We remain vigorously dedicated to rewarding your faith with a service that provides you with great investment value.

Over multiple generations, great software companies tend to share one thing in common: a general belief that they can do it better this time. We're fortunate enough to have assembled not only a world-class investment team led by Burt Malkiel, but also a software team composed of amazingly talented people from companies like Google, Facebook, LinkedIn, Twitter and Apple. Together, we share a belief that this is a once-in-a-generation opportunity to build a meaningful software company in the financial services market. 

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Related blogs

Create a blog about this story (membership required)

Who is commenting?

Featured job

Competitive (base, bonus, benefits)
Boston, MA (USA)

Find your next job