The raise propels the online financial services company to a $5 billion valuation
Wealthsimple Technologies Inc. has raised $750 million, propelling the online financial services company to a $5 billion valuation.
The deal for the seven-year-old Toronto-based company was led by U.S. venture capital firms Meritech and Greylock, and is backed by some of Silicon Valley’s biggest funds and Canada’s best-known celebrities. Dragoneer Investment Group, DST Global and Iconiq Capital, Montreal-based Inovia Capital and Power Corp. of Canada’s alternative-investment arm Sagard Holdings are involved in the round, as well as Canadian rapper Drake, and actors Michael J. Fox and Ryan Reynolds.
“This investment will fuel our growth so we can reach millions more and ensure that everyone has access to the simplest, most powerful financial products and services, no matter who they are or where they are in their financial lives,” Wealthsimple co-founder and chief executive Mike Katchen said in a press release.
As markets whipsawed during the pandemic, do-it-yourself investors flocked to online trading platforms.
The raise trumps Wealthsimple’s last funding round seven months ago, which pulled in $114 million.
“Wealthsimple has been able to capture a generation of financial consumers in Canada with financial products that are markedly different than anything offered by the incumbents — simpler, more human, and built with the kind of technology that delivers an experience consumers want,” Meritech general partner Max Motschwiller said in the release.
More to come …