Wealthfront, a California-based digital wealth management company, announced on Monday it secured $75 million during its latest funding round led by Tiger Global Management with participation from all existing venture capital investors, including Benchmark Capital, DAG Ventures, Greylock Partners, Index Ventures, Ribbit Capital, Social Capital and Spark Capital Growth.
Founded in 2011, Wealthfront is described as a rob-advisor that offers the combination of financial planning, investment management, and banking-related services exclusively through software. The company reported that it will use the funding from the latest investment round to expand its efforts to optimize and automate more financial services using Path, which is Wealthfront’s automated financial planning service. Andy Rachleff, Co-founder and CEO of Wealthfront, stated:
“We’re excited to add Tiger Global Management to our roster of investors. Its funding allows us to continue launching innovative features that meet the needs of a group ignored by the traditional industry. 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.“
Lee Fixel, Partner at Tiger Global Management, also commented:
“Wealthfront’s exclusively software-based model gives the company a superior approach to capture the younger, fast-growing market of investors. We’re excited to support continued growth of the business and help Wealthfront become to the Millennial generation what Charles Schwab is to Baby Boomers.“
Wealthfront added it doubled its assets under management in 2017 and now manages more than $9 billion.