Drake Backed Canadian Investment Firm Wealthsimple Gets $4 Billion Valuation
Drake Backed Canadian Investment Firm Wealthsimple Gets $4 Billion Valuation. Toronto-based online brokerage Wealthsimple, which can count Drake among its celebrity investors, has raised $610 million in fundraising with a $4 billion valuation.
Business Insider reports that the Power Corporation of Canada company’s latest round of funding was led by Meritech Capital Partners and Greylock Partners. The funding and valuation were announced on Monday. Wealthsimple plans to use the funding to expand its position in the ever-growing market of online brokerages, especially as an increasing number of Canadians take interest in stock trading amid the COVID-19 pandemic.
According to Yahoo News, Drake isn’t the only celebrity with stake in Wealthsimple, as other Canadians including Ryan Reynolds, Michael J. Fox, and Kelly Olynyk have invested. The company is currently experiencing a surge in valuations as online trading increases, with over 2 million users already. A rival to the likes of Robinhood Markets Inc. (which found itself under scrutiny during the “GameStonk” saga earlier this year), Wealthsimple offers crypto currency trading, tax services, automated investing, and commission-free stock trading.
“More than two million Canadians use Wealthsimple to grow their money, file their taxes, pay their friends, and make their financial lives better,” CEO of Wealthsimple Mike Katchen told Yahoo News. “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 Inc. is a Canadian online investment management service focused on millennials. The firm was founded in September 2014 by Michael Katchen and is based in Toronto. As of February 19, 2021, the firm holds over C$8.4 billion in assets under management. It is primarily owned by Power Corporation indirectly at 70.1% through investments made through their holdings in Power Financial, IGM Financial and Portag3.
Prior to founding Wealthsimple, Katchen worked for 1000Memories, a Silicon Valley-based start-up. 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.
