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Financial technology is hot right now, and automated-investment service Wealthfront is cashing in on that.
The company announced today that it has raised $35 million in new funding. Wealthfront plans on using this new cash infusion to “invest in the people and technology required to scale, and by doing so accelerate the pace of new features and services to handle more than a thousand times the assets we manage today,” it said in a blog post.
This is presumably to continue the momentum is has seen over the past year — the company grew more than 700 percent since the start of 2013, and it now has customers in all 50 states and manages over $800 million.
Wealthfront claims to offer “the most tax-efficient and low-cost index-fund-based solution for long-term investors on the market.” The company also seems to be strongly focused and rooted in the experiences of younger investors.
Its announcement of this funding round discussed the “millennial generation” and how its encounters with two market crashes are causing it to turn to software, a familiar friend, and away from the costly traditional financial advice it sees as responsible for the financial crises.
Last time Wealthfront raised funding a year ago, it used the money to focus on developing its product, adding features without adding customer fees, and growth. the company at large.
However, Wealthfront is not the only player trying to put software and automation to good use toward investment management. SigFig, Personal Capital, and Robinhood are among the many out there attempting to save people from their lack of wealth management savviness.
Index Ventures and Ribbit Capital led the round, with existing investors The Social+Capital Partnership, Greylock Partners, and DAG Ventures as well as new investors also contributing. Wealthfront previously raised $20 million in March 2013, and its total funding is now up to $65.5 million.
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