Wealthfront Gets $20M More for Online Investment Management
Wealthfront has raised a big $20 million Series B round led by Index Ventures with the Social+Capital Partnership and Greylock Partners.
The company helps manage investments — currently $170 million worth, with an average account of $80,000. Stemming from its roots, 70 percent of its users come from the tech industry.
With Mike Volpi (longtime Cisco), Chamath Palihapitiya (early Facebook, also good at poker) and Reid Hoffman (LinkedIn co-founder and early investor in some big hits) leading the investments for their respective firms, Wealthfront is reeling in some big fish. But the company’s assets under management have grown 70 percent in the past three months, according to Wealthfront CEO Andy Rachleff.
For customers, the first $10,000 invested is free, with a management fee of .25 percent thereafter.
Rachleff said the new money will be spent on team and product growth in efforts to reach a larger and more diverse audience.