Online Investment Company Wealthfront Raises $20 Million
Wealthfront is an online investment company that has raised $20 million led by Index Ventures. Other investors that have participated in this round include The Social + Capital Partnership and Reid Hoffman (LinkedIn founder). Existing investor DAG Ventures also participated in this round. Other investors that participated in this round include Matt Mullenweg, Andy Dunn, Adam D’Angelo, Michael Schroepfer, Hunter Walk, Cipora Herman, Satya Patel, and several others.
The Wealthfront platform helps clients build and manage a diverse investment portfolio instead of having to pay an investment bank of wealth manager. After you in the account type, you input the amount to invest and age. From there, an SEC-registered financial advisor will provide you with advice at a lower cost. Wealthfront will even manage your online investment account.
“Judging by the growth in our assets under management (AUM), our clients really seem to like what we’re doing. In the little more than one year we have offered our service, our clients have entrusted us to manage over $170 million of their assets. Our assets under management have grown more than 70% just since the beginning of 2013,” stated Wealthfront COO Adam Nash.
Wealthfront launched in 2011 and has features like automatic rebalancing and tax-loss harvesting. Wealthfront does not charge an advisory fee on the first $10,000 that is invested. They will charge a monthly advisory fee at 0.25% after that. Based in Palo Alto, California, Wealthfront has raised a total of $30.5 million.
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry