Wealthfront, the software-based wealth management company that is targeting the millennial segment, has raised $75 million in a funding round led by Tiger Global Management.
The Redwood, California-based company doubled its assets under management in 2017 and now manages over $9 billion. The company has grown through a low-cost and freemium model for first-time investors and aggressive expansion into new areas, including financial planning and credit services.
Andy Rachleff, co-founder and CEO of Wealthfront, says: “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.”
According to a Deloitte study, by 2030 the Millennial Generation and Generation X will control the majority of financial assets in the United States, projected to be $33 trillion.
“Wealthfront’s exclusively software-based model gives the company a superior approach to capture the younger, fast-growing market of investors,” say Lee Fixel, partner at Tiger Global Management. “We’re excited to support continued growth of the business and help Wealthfront become to the Millennial generation what Charles Schwab is to Baby Boomers.”