Wealthfront Taking Off

by James on November 2, 2014 · 1 comment

Wealthfront, financial services, stockbroker services, financial advisors, stock market, investments, investment advisorsHi Guys,

File this under “good to know if you’re shopping for a stockbroker”…but internet based financial services firm Wealthfront has recently surpassed a billion dollars in assets. Since financial services firms don’t magically make money, it means that a lot of young millenials have forked over their cash for Wealthfront to manage. This suggests maybe their business model is doing a good job helping people build wealth.

BuzzFeed news has the story:

Two and a half years after its launch, Wealthfront, the algorithm-based financial advisory service marketed toward the “millennial” investor, has hit $1 billion in assets. The milestone comes less than four months after the Silicon Valley startup that had the traditional wealth management industry questioning its sustainability hit the $700 million mark, topping competitors like Betterment and Personal Capital in the automated investment management space.

The company, which has been called the “Uber of wealth management,” has undergone two rounds of venture capital funding, the first of which which was led by investing powerhouse Andreessen Horowitz, and targets young people, hoping to capture a large chunk of what Wealthfront estimates is 90 million people in the U.S. with a net worth of $2 trillion. The goal is to hook early investors in their twenties and keep them for life.

Check out the rest of the story here.

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{ 1 comment… read it below or add one }

1 Investor Junkie @ Larry Ludwig November 2, 2014 at 2:12 pm

While it’s great that Wealthfront (and the other robo advisors for that matter) are growing, $1B in assets is very small compared to companies like Fidelity and Vanguard which manage Trillions.

Though they are going to consolidate and wipe up many of the high-fee no value added financial advisors. Which in my opinion is a “good thing”.

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