Wealthfront Inc., one of the largest independent digital wealth management startups, just closed a $75 million round of funding to help develop new products for its growing client base.
The company has amassed just over $9 billion in assets under management since launching in late 2011. While it took 13 months for the firm to get its first $100 million in assets under management, it added $100 million yesterday alone, Chief Executive Officer Andy Rachleff said in an interview.
The new round should be “more than enough” to see them through to becoming profitable, he said.
With a client base that skews younger than most online-based advisers — more than three-fourths of customers are under the age of 45 – the firm has made a large push into financial planning since its last funding round in 2014.
It’s also been focusing on investment management and banking services, and Rachleff says Wealthfront plans to “even more aggressively expand into those services than we have in the past.”
The expansion as well as the young customer base was a key selling point to bringing on Tiger Global Management as an investor in the latest funding round.