Wealthsimple grabs $15m to launch in US market

fintech insurtech wealthtech regtech ai cybertech esg news

Toronto-based robo-advisor Wealthsimple has raised $15.25m from Power Financial Corp to launch in the US.

The roll out will be the first by a foreign company in the US market where it will target inexperienced, millennial investors.

The company uses algorithms instead of human investment advisors to create diversified portfolios at a lower cost.

Wealthsimple charges a 0.5% fee for investments up to $100,000 with a fee of 0.4% above that sum.

It also aims to appeal to young and first time investors by offering no account minimum and offering the first $5,000 for free.

The company says more than 20,000 users signed up to its launch in 2014 and it expects to see more than $1bn in exchanged traded funds reached soon.

It will launch in the US with a Super Bowl ad.

Power Financial has now invested more than $50m in Wealthsimple.

Copyright © 2017 FINTECH GLOBAL

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research


The following investor(s) were tagged in this article.