Wealthsimple

Prefounding

Prior to founding Wealthsimple, Michael Katchen worked for 1000Memories, a Silicon Valley-based startup. "After Ancestry.com bought 1000memories in 2012, Katchen developed a spreadsheet with tips to help his colleagues set up investment portfolios." "Interest in the spreadsheet helped inspire the idea for Wealthsimple." "In 2014 he returned to Toronto to launch the company."

2015 Acquisition of Canadian ShareOwner Investments Inc.

In December 2015, Wealthsimple made its first acquisition with acquiring Canada's first robo-advisor service, Canadian ShareOwner Investments Inc. Through the acquisition Wealthsimple became an owner of one of Canada's 14 discount brokerages (2015) alongside other owners of discount brokerages including Bank of Montreal and Royal Bank of Canada. The acquisition of Canadian ShareOwner Investment Inc. resulted in the assets under management comprising CAD $400,000,000 across 10,000 customer accounts.

2016 - Present: Focus on Product Offerings

In March 2016, the firm began offering clients access to socially responsible investment funds.

In May 2016, the firm announced a partnership with Mint, thus allowing clients to sync their Wealthsimple investment account to Mint's budgeting software.

Also in May 2016, the firm launched Wealthsimple for Advisors, an automated platform for financial advisors. The service is intended for advisors who wish to maintain clients with accounts below their minimum requirements.

Products and services

Wealthsimple combines a robo-advisor platform with access to live advisors. Each client is provided an investment advisor who helps match investments to the client's long-term goals and risk tolerance. The firm does not occupy retail space; instead its advisors are available via phone, text message, email or video chat. There is no account minimum required and no charge per transaction. An annual fee is charged ranging from 0.35% to 0.5% based on account size. Portfolios are monitored daily and automatically rebalanced if they move beyond certain thresholds.

Finances

The first round of raising money was in May 2014 raising CAD $1.9 million investors included Eric Kirzner, Joe Canavan, and Roger Martin.

In April 2015, the firm received CAD $10 million from Power Financial Corporation in an agreement structured to allow for a future investment of CAD $20 million within 12 months. In total Power Financial Corporation has invested $30 million in Series A funding.

An annual fee is charged ranging from 0.35% to 0.5% based on account size.

In January 2017 CNBC reported that Wealthsimple launched a service for clients whose accounts have in excess of C$100,000 whereby their management fee is 0.4%.

Recognition

In 2015 Product Hunt Toronto honored Wealthsimple with its first-ever Product of the Year Award. In 2016 the 20th Annual Webby Awards named Wealthsimple its Best Financial Services/Banking website.