Whether you invest or not, you wonder about it because everyone wants to ensure they are very prepared for the future when they can no longer be in full time work or business.
Planning your retirement, finding money to build your luxury dream mansion or start that business you feel can change the world?
Perhaps you could ramp up your investment with Wealthsimple.
What is Wealthsimple?
As a tech startup idea, Wealthsimple will put your investment on autopilot, remove the guesswork and risk on your long term effort to increase your assets, provide you a personal virtual wealth concierge and it will do all these for you at a very low cost.
Wealthsimple can help you earn better on your investments for a whole lot cheaper?
So, it says.
Startup: Wealthsimple
Founded: 2014
Founders
Founders’ Inspiration
After the acquisition of the startup he worked for, Michael and his co-workers ended up with huge sums of money. He set up an excel spreadsheet with tips to aid his collegueas set up thoughtful investments. This was the beginning of wealthsimple.
Headquarters: Toronto,Ontario
Vision: To enhance investment prospects of every individual by offering low cost, dedicated virtual financial advice. (imagined by us).
Website: https://www.wealthsimple.com/
The Pitch (The idea in 20 words)
Wealthsimple is a robo advisor providing wealth concierge services to create cost effective, diversified portfolio for investors.
Industry
Financial Services, FinTech, Robo advisor, Investments, Technology
Strategy
- Wealthsimple provides automated technology which will enable users run their investments on autopilot by providing their financial data.
- Each client of Wealthsimple is allocated a Wealth Concierge, an investment advisor who matches investmenst to the long term goals of the client, and his or her ability to tolerate risks.
- These Wealth Concierges are available only online, including video chats and text messages to understand what clients need to create a diversified, low cost portfolio.
- Client’s use the Wealthsimple mobile app which allows them track investments at any time.
- The company requires no minimum amount for account opening and targets all kinds of users, as opposed to the market’s target for high end users.
- Wealthsimple charges clients 0.5% annual rate of their assets.
- It educated its clients and prospects through its online magazine.
- Wealthsimple has structured a long term strategic partnership deal with Power Financial, an investment company with $1.5 trillion in assets in financial companies to make expansion funding readily available to the startup when needed.
- It has a premium model which unlocks extra features to accounts above $100,000.
- Its range of services include Portfolio Rebalancing, Dividend Reinvesting, Automatic Deposits, Human Advisors, Tax Loss Harvesting, Financial Planning, VIP Airline Lounge Access
Revenue Model
Wealthsimple charges client’s annual rate of 0.5% of their asset under its management and will charge 0.4% for clients under its premium package.
Growth and Market prospects
Wealthsimple has over 30,000 clients and over C$1 billion worth of Canadian dollars in assets under management. The company is expanding in the United States.
Funding
Wealthsimple has been funded in three rounds to enable its growth and as a tech startup idea, it is funded by investors;
Seed: $1.9 million – September 2014
Series A: $30 million – April 2015
Series B: $20 million – January 2017
Series B: $37 million – May 2017
Total Funding: $77.92 million
Investors
Power Financial has taken a strategic investment position in the startup. Wealthsimple investors include;
- Christian Lassonde
- David Ossip
- Impression Ventures
- Joe Canavan
- Power Financial Corporation
Future Strategy
- Dave may consider increasing its payday loan in the future.
- Dave plans on using the same approach to address other forms of Bank charges.
- Dave also sets its sights on using a similar model to stop unpopular charges in other industries in the future.
Industry Insights
The popularity of robo advisors have soared in recent years and are slicing the pie off traditional financial advisors. This is because they take out the guesswork from investing and are appealing to all levels of investors than traditional financial advisors who would rather streamline their services to meet the needs of high end investors.
Hence, investors are taking to this option. Robo advisors like Wealthsimple also offer cheaper fees which creates high demand. Traditional financial advisors have seen this trend leading to a synergy between them and robo advisors which is becoming a win-win for all parties.
Disrupts
Wealthsimple primary disrupts the expensive Canadian investment market which has the average investor paying 2.5% for mutual funds.
As a robo advisor, it disrupts the traditional financial advisor industry.
Opportunity for Idea Creators
Wealthsimple has created a simple automated way to invest your hard earned cash. Has its methods never existed before? Far from it, yet its future success seems guaranteed as the market for investments remains a sought after one globally. Creating massive potential in both established and growing markets for new robo advisor entrants who are smart at their own unique niche strategies in launching their own products, services or applications.
Also, there is room for this business model to be transferred into other industries with the same effect, thereby opening doors of opportunities to idea creators to take advantage of and add value within various sector.
On the look out to create more value within this industry sector in a technology driven way should be;
- Financial advisors
- Financial analysts
- Financial personnel
- Finance institutions
- And any other crazy head who thinks and can, can make things happen
Wealthsimple is helping you earn better on your investments for a whole lot cheaper.
How about benefitting from something as unique as that
And before you go, please do all or one of these three things;
- Please leave us a comment. I will like to share in your thoughts and have a good conversation with you on this startup idea.
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Disclosure: This review, article or report was first posted on http://www.babeonideas.com blog in 2017. The http://www.babeonideas.com blog no longer exists. Some information may be outdated or a startup may no longer exist in the form or all of its form when it was first reviewed.
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