Toronto’s Wealthsimple today announced it has entered into a partnership with Power Financial Corporation, through a wholly owned subsidiary.
Under the agreement, Power Financial will, subject to regulatory approval, invest $10 million, and can invest up to $20 million into Wealthsimple over the next 12 months, with the option to make further investments over the next three years.
“The financial services industry is changing as many millennials desire smart, transparent, and low-fee services,” said Michael Katchen, Founder and CEO, Wealthsimple. “We are excited to be at the forefront of this change in Canada and Power Financial’s investment demonstrates a huge vote of confidence in our team and business.”
Since launching in September 2014, Wealthsimple’s technology-driven investment management platform has secured over 1,000 clients.
Power Financial’s investment will enable Wealthsimple to expand its offering of low-fee investing solutions to a larger pool of Canadian investors looking for a different way to invest. This includes building its team with more technology and financial experts, enhancing its marketing efforts and providing Wealthsimple with access to an even larger roster of experienced investment professionals to continue to enhance its current service.
“Wealthsimple offers an innovative solution that complements the demographics serviced by our other financial services brands,” said Power Financial Corporation Vice President Stéphane Lemay. “We believe in the value of financial advice for everyone and see the Wealthsimple model as a way to appeal to under-served segments of the Canadian population like millennials and those with more modest assets. Wealthsimple has been able to reach this market.”
Wealthsimple was named a Techvibes 20 company in October 2014 after named to CIX’s20 Most Innovative Companies list and raising $1.9 million from Dan Debow, David Ossip, and Impression Ventures.
Wealthsimple CEO Michael Katchen recently penned a guest article for Techvibes about the tendency for Canadian startups to limit their own potential by dreaming small.