Wealthsimple says a new financing deal involving plenty of star power and venture capital investors has pushed the company’s valuation to $5 billion.
The Toronto-based financial services business announced Monday that it has raised $750 million from more than 15 venture capital investment firms including Meritech, Greylock, Dragoneer and iNovia and six celebrities.
The star-studded list of investors includes rapper Drake, actors Ryan Reynolds and Michael J. Fox, NBA players Kelly Olynyk and Dwight Powell and NHL athlete Patrick Marleau.
“The financial services industry is in the midst of a massive transformation, and our continued growth, and the interest from some of the world’s leading investors, proves that Wealthsimple is poised at the leading edge of that transformation in Canada,” Wealthsimple co-founder and CEO Mike Katchen said in a release.
He plans to use the new cash to expand Wealthsimple’s market position, build out its offering of products and grow its team.
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Wealthsimple, which began as an online investment manger, has grown to add Wealthsimple Trade, a commission-free stock trading platform, and Wealthsimple Crypto, which allows users to buy, sell and hold cryptocurrency assets.
It also launched Wealthsimple Cash, a peer-to-peer money transfers app, earlier this year and offers automated investing, saving and tax filing products.
Wealthsimple raised $114 million from TCV, Greylock and Meritech at a $1.5 billion post-money valuation last October.
The funding announced Monday was led by Meritech and Greylock, but also backed by DST Global, Sagard, Iconiq, Dragoneer, TCV, iNovia, Allianz X, Base 10, Redpoint, STEADFAST, Alkeon, TSV, Plus Capital.
The last time Meritech and Greylock co-led a funding round was the Facebook Series B in 2006, Wealthsimple said.
“We invest in companies with the potential to revolutionize industries and become enduring market leaders,” said Meritech’s general partner Max Motschwiller, in a release.
“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 has also invested in Salesforce, Nextdoor, Zulily and Lime, while Greylock has backed Airbnb, LinkedIn, Coinbase and Discord.
“Wealthsimple has created a compelling lineup of financial products that delight users, resulting in rapid client growth and highly satisfied customers,” said David Thacker, a Greylock partner, in a release.
“We are thrilled to double down on our investment and be part of their journey.”
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