Toronto based robo-advisor Wealthsimple has raised $15.25m in Series B funding led by Power Financial Corp. Wealthsimple’s national roll-out will make the Toronto-based firm the first foreign robo-adviser startup to enter that market, according to an industry analyst.
Robo-advisers give automated financial advice or portfolio management using technology, and do not use a human financial planner. Their online service is touted as a low-cost, convenient alternative to traditional outfits. But increasing competition from large, established firms like Charles Schwab and Vanguard have raised questions about the ability of startups to gain enough traction to become profitable. Wealthsimple’s founder and CEO Mike Katchen said it was too soon to set U.S. targets and declined to specify what amount of assets under management the company would need to become profitable.