Wealthfront raises $75 million. Full transcript below.
Welcome to the FPPad fintech briefing for Friday, January 5, Here are the top fintech stories you need to know today.
Just say no to Bitcoin, as it was reported that Bank of America’s Merrill Lynch told its employees last month not to offer the Grayscale’s Bitcoin Investment Trust to clients, according to a Wall Street Journal article. The price of Bitcoin has skyrocketed over 1,300 per cent over the last 12 months, attracting wide speculation from global cryptocurrency enthusiasts and high levels of skepticism about a bubble among market experts.
In news from Wealthfront, the online automated investment service said it raised $75 million dollars in new financing led by Tiger Global Management and included participation from all of its existing investors. In a blog post, Wealthfront CEO Andy Rachleff said that the company will use the new financing to “pursue an even more aggressive push into software-based financial planning and financial services.” Wealthfront said it doubled its assets under management in 2017, finishing the year at over $9 billion, placing it fourth in total assets behind other low-cost investment services from Vanguard, Charles Schwab, and Betterment.
And another online investment service raising new money to jumpstart 2018 is NextCapital, as the company announced it raised $30 million in Series C financing led by venture firm Oak HC/FT, also with participation from many of NextCapital’s existing shareholders. According to NextCapital CEO John Patterson, the company will use the funding to “bring new digital advice capabilities to market and open up new strategic business channels.”
