Wealthsimple secured $114M in funding
Ontario-based financial advisor Wealthsimple announced it has raised $114 million on a valuation of $1.4 billion. The investment was led by TCV , growth equity investors focused on technology, alongside Greylock, Meritech, Two Sigma Ventures and existing investor Allianz X . Concurrent with the funding, David Yuan, General Partner at TCV, will join Wealthsimple’s Board of Directors.
Founded in 2014, Wealthsimple has evolved the financial services industry in Canada by bringing smart, simple and affordable financial products and services to market; today over 1.5 million Canadians use Wealthsimple products. The company is known for its client-centric approach to financial products, which include automated investing, commission-free stock and crypto trading, a savings account, and a tax filing software. Wealthsimple will use the new capital to expand its market position, build out its product suite, and grow its team in Canada.
“Our growth over the past six years shows how ready Canadians, and especially younger Canadians, are for a new model of financial services designed around their needs. But too many people still don’t have access to great financial products or are paying too much for them. There’s still so much room to grow, and to have investors of this caliber join us is an incredible vote of confidence in both our mission and our ability to deliver on it.” – Co-Founder and CEO of Wealthsimple, Mike Katchen.
“We have been watching Wealthsimple’s rise in the Canadian market and love the way the company is bringing simplicity, humanity, and delight to personal finance. TCV is focused on businesses that have the potential to transform industries, and we are thrilled to work with Mike and the Wealthsimple team to build a leader in financial services and an important consumer platform.” – General Partner, TCV, David Yuan.
TCV invests in tech-focused companies with an ambition to become market leaders. The growth equity firm has backed over 350 technology companies, including Airbnb, Klarna, Netflix, Nubank, Peloton, Revolut, Spotify, and Zillow. Greylock, a longstanding venture capital firm that focuses on enterprise and consumer software, has invested in companies including LinkedIn and Airbnb, and has partnered with over 180 companies through IPO, while Meritech has partnered with 200 companies globally including Salesforce and Snowflake. The investment also marks the first time that Meritech has invested in the Canadian market.