Wealthfront

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Wealthfront Inc.
Industry Personal Finance, Stock Exchanges, Finance
Founded Redwood City, California
Founder Andy Rachleff (CEO, chairman)
Dan Carroll
Key people
Burton Malkiel (CIO)
AUM $4.65 billion (January 3, 2017)[1]
Number of employees
138[1]
Website www.wealthfront.com

Wealthfront Inc. is an automated investment service firm based in Redwood City, California,[2][3][4][5] founded by Andy Rachleff and Dan Carroll in 2008.[6][7] As of January 26, 2017, Wealthfront had more than $5 billion of assets under management.[8] Wealthfront is considered to be a "robo-advisor" investment service.

History[edit]

Wealthfront was founded by Benchmark co-founder Andy Rachleff and Dan Carroll in 2008 as kaChing, a mutual fund analysis company, before pivoting into wealth management.[9][6][4][10] Rachleff was the firm's founding CEO.[10] In December 2012, the firm started tax-loss harvesting for accounts of more than $100,000.[11][12]

The company started 2013 with $97 million in assets under management and grew by 450% in one year.[7] In 2013, Wealthfront introduced "direct indexing", a tax-loss harvesting platform that purchases the individual securities of an investment portfolio.[13] In January 2014, Adam Nash became Wealthfront's CEO.[3]

In 2016, Wealthfront launched a partnership with the state of Nevada to launch a 529 tax-advantaged college savings plan. In the previous year, Nevada passed approval on a new tax credit for employers who provide fund matching to employees participating in 529 savings programs.[14] Andy Rachleff is currently the executive chairman and chief executive officer.

Finances[edit]

The company has received funding from Benchmark Capital, DAG Ventures, Index Ventures, The Social+Capital Partnership and individuals, including Marc Andreessen, Ben Horowitz and Jeff Jordan.[10] In April 2014, Wealthfront raised $35 million in a funding round led by Index Ventures, Ribbit Capital and Benchmark Capital.[15] The funding round brought the firm's total funding to $65.5 million.[16]

See also[edit]

References[edit]

  1. ^ a b "Wealthfront Form ADV Part 2A" (PDF). Wealthfront. 2 November 2016. Retrieved 18 December 2016. 
  2. ^ Leena Rao (2014-01-13). "Automated Investment Services Company Wealthfront Now Manages Over $538M In Assets, Up 450 Percent Over The Past Year". Retrieved 2014-08-22. 
  3. ^ a b Brooke Southall (2014-01-30). "Andy Rachleff is out as CEO of Wealthfront as former LinkedIn star takes his place". Retrieved 2014-08-22. 
  4. ^ a b Saitto, Serena (25 March 2014). "Wealthfront Said to Be Raising $30 Million Led by Index". Bloomberg News. Bloomberg L.P. Retrieved 22 August 2014. 
  5. ^ "The 2014 CNBC Disruptor 50 List". Retrieved 2014-08-22. 
  6. ^ a b Eric Savitz (2012-03-01). "WealthFront: Asset Manager Targets Valley's Nouveau Riche". Retrieved 2014-08-22. 
  7. ^ a b Leena Rao (2014-04-02). "Automated Investment Service Wealthfront Raises $35M From Index, Ribbit Capital". Retrieved 2014-08-22. 
  8. ^ https://www.wealthfront.com/static/documents/form_adv_part_1.pdf
  9. ^ Jason Kincaid (2009-12-15). "kaChing Raises $7.5 Million To Turn Mutual Funds On Their Heads". Retrieved 2015-03-19. 
  10. ^ a b c Tom Taulli (2012-02-07). "Interview: Wealthfront CEO and Founder Andy Rachleff". Retrieved 2014-08-22. 
  11. ^ Marcus Wohlsen (2012-10-09). "Now Tech Plebes Can Dodge Taxes Like a Former Governor". Retrieved 2014-08-22. 
  12. ^ Kim-Mai Cutler (2012-10-09). "Financial Planning Startup Wealthfront Woos Silicon Valley Workers With A Once-Secret Investment Trick". Retrieved 2014-08-22. 
  13. ^ Wommack, Sanders (19 December 2014). "Wealthfront's high-net-worth cat leaps out of the bag -- keeping it one robo 'pivot' ahead of Schwab". RIA Biz. Retrieved 27 January 2015. 
  14. ^ Andrea Davis (2016-06-03). "Wealthfront leads robo expansion into college savings plans". Retrieved 2016-07-14. 
  15. ^ "Funding Roundup: Wealthfront Raises $35 Million, Reports 450% Growth". 2014-04-04. Retrieved 2014-08-22. 
  16. ^ Gabrielle Karol (2014-06-13). "High-Tech Investing Startup for Millennials Hits $1 Billion in Assets". Retrieved 2014-08-22. 

External links[edit]