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.