Wealthsimple
| Industry | Financial Services, Online Investment Management |
|---|---|
| Founded | 2014 |
| Headquarters | Toronto, Ontario |
|
Key people
|
Michael Katchen, Founder and CEO |
| AUM | $400 Million |
| Website | Wealthsimple.com |
Wealthsimple Financial Inc. is an online investment management service. The firm was founded in September 2014 by Michael Katchen and is based in Toronto.[1] As of December 2015, the firm had over $400 million in assets under management.[2]
Features
Wealthsimple combines a robo-advisor platform with access to live advisors.[3] Each client is provided an investment advisor who helps match investments to the client’s long-term goals and risk tolerance. The firm does not occupy retail space; instead its advisors are available via phone, text message, email or video chat.[1] There is no account minimum required and no charge per transaction. An annual fee is charged ranging from 0.35% to 0.5% based on account size. Portfolios are monitored daily and automatically rebalanced if they move beyond certain thresholds.[4][5]
History
In May 2014, Wealthsimple raised two million dollars of seed investment from 15 investors, including Joe Canavan, Dan Debow, Eric Kirzner, Christian Lassonde, Roger Martin and David Ossip.[1][2] In April 2015, the firm received $30 million in Series A funding from Power Financial Corporation.[6] In December 2015, Wealthsimple acquired Canada’s first robo-advisor service, Canadian ShareOwner Investments. Through the acquisition Wealthsimple became an owner of one of Canada’s 14 brokerages.[2][7] In March 2016, the firm began offering clients access to socially responsible investment funds.[8] In May 2016, the firm announced a partnership with Mint, thus allowing clients to sync their Wealthsimple investment account to Mint’s budgeting software.[9] Also in May 2016, the firm launched Wealthsimple for Advisors, an automated platform for financial advisors. The service is intended for advisors who wish to maintain clients with accounts below their minimum requirements.[10]
Founder
Prior to founding Wealthsimple, Michael Katchen worked for 1000Memories, a Silicon Valley-based startup. After Ancestry.com bought 1000memories in 2012, Katchen developed a spreadsheet with tips to help his colleagues set up investment portfolios. Interest in the spreadsheet helped inspire the idea for Wealthsimple. In 2014 he returned to Toronto to launch the company.[1][11]
Recognition
In 2015 Product Hunt Toronto honored Wealthsimple with its first-ever Product of the Year Award.[12] In 2016 the 20th Annual Webby Awards named Wealthsimple its Best Financial Services/Banking website.[9]
References
- ↑ 1.0 1.1 1.2 1.3 Quentin Casey, "Wealthsimple aims to turn financial services industry on its head with new low-cost approach to investing," Financial Post, April 10, 2015.
- ↑ 2.0 2.1 2.2 Jonathan Chevreau, "Millennial-focused Wealthsimple to buy boomer robo-adviser ShareOwner, its first acquisition," Financial Post, December 2, 2015.
- ↑ Marjo Johne, "Meet the next generation of wealth," The Globe and Mail, May 9, 2016.
- ↑ Robb Engen, "The Comparison: Battle of the robo-advisers," Toronto Star, March 14, 2016.
- ↑ Andrew Rickard March, "Robo advisor drops minimum investment requirement to $0," The Insurance & Investment Journal, March 9, 2016.
- ↑ Doug Alexander, "Bank of Montreal Enters Robo-Advising Ahead of Other Lenders," Bloomberg News, January 18, 2016.
- ↑ "Wealthsimple Acquires Automated Investment Manager to Innovate Canadian FinTech," TechVibes, December 2, 2015.
- ↑ Clare OíHara, "Canadian robo-advisers plug into socially responsible investing," The Globe and Mail, March 24, 2016.
- ↑ 9.0 9.1 "Wealthsimple Wins Webby Award, Partners with Mint," TechVibes, May 3, 2016
- ↑ Fiona Collie, "Wealthsimple launches platform for advisors," ‘’[Investment Executive]’’, May 24, 2016.
- ↑ Joe Castaldo, "How Wealthsimple founder Michael Katchen is shaking up financial advice," Canadian Business, March 9, 2015.
- ↑ Douglas Soltys, “Happy Birthday, #Producthuntto,” Betakit.com, August 28, 2015.
