Robo-advisor Wealthfront has netted $75m in a round of funding led by Tiger Global Management.
Other contributions to the round came from previous investors: Benchmark Capital, DAG Ventures, Greylock Partners, Index Ventures, Ribbit Capital, Social Capital and Spark Capital Growth.
Wealthfront is a robo-advisor that also offers financial planning, investment management, and banking related services. This solution helps young professionals and families to invest at low-cost mobile-based services.
The company’s Path solution is its automated financial planning service, which also compiles all of a user’s accounts into one location. Last year the company launched a range of ainvestment features and doubled its assets under management to over $9bn.
This line of capital will enable the company to further develop features for its platform, with Path serving as the foundation for all client interaction.
Wealthfront co-founder and CEO Andy Rachleff said, “Path’s appeal to young people propelled our growth such that people under 45 now represent 85% of our clients. We believe our success with this group is based on our unique ability to optimize 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.”
This latest injection of equity brings the company’s total funding efforts up to $184m, with its last funding round being a $64m Series D round in 2014.
Last year continued the WealthTech sectors more towards more higher valued deals. The sector has seen a big decrease in deals valued less than $1m, with it falling by 17 per cent since 2015.
Copyright © 2018 FinTech Global
