Overview

Wealthfront provides financial services aimed at helping individuals grow their wealth through a digital platform. Its main offering is an automated investment service that uses algorithms, known as robo-advisors, to manage and invest client funds for long-term growth. This service is complemented by a high-yield cash account that offers a competitive 5.00% APY for short-term savings, provided through partner banks. Additionally, Wealthfront offers a diversified bond portfolio that allows clients to earn dividends with tax benefits, and a platform for discovering and purchasing stocks to facilitate quick and strategic investment decisions. Unlike traditional wealth management firms, Wealthfront focuses on automation and ease of use, charging an advisory fee based on investment returns. The company's goal is to simplify wealth management and make it accessible to a broader audience.

Simplify's Take

What believers are saying

• Wealthfront's assets under management reached $50 billion, indicating strong growth.
• The rise of ESG investing aligns with Wealthfront's target demographic and product potential.
• Open banking regulations could enhance Wealthfront's robo-advisory services with more data integration.

What critics are saying

• Increased competition from Betterment and traditional institutions may pressure Wealthfront's market share.
• Free wire transfers could increase operational costs without boosting revenue.
• Expansion into stock investing may lead to higher regulatory scrutiny and compliance costs.

What makes Wealthfront unique

• Wealthfront offers a high-yield cash account with industry-leading 5.00% APY.
• The platform integrates automated investing with personalized financial advice using AI.
• Wealthfront provides up to $8 million in FDIC insurance for cash accounts.

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Funding

Total Funding

$204.5M

Below

Industry Average

Funded Over

6 Rounds

Notable Investors:

Tiger GlobalBenchmarkGreylock Partners

Notable Investors:

Tiger GlobalBenchmarkGreylock Partners

$75,000,000

Series E

Jan 2018

Series E funding typically includes additional rounds after Series D if the company needs more capital. The business is usually stable, and these rounds are typically used for further expansion or to address market challenges.

Series E Funding Comparison

Below Average

Industry standards

Ind Avg. $100M

$30M

$75M

$245M

$250M

$1250M

$1500M

View all funding stages