According to Wealthsimple, a new financing deal with numerous star power and venture capital investors has raised the company’s valuation to $ 5 billion.
The Toronto-based financial services firm announced Monday that it had raised $ 750 million from more than 15 venture capital investment firms including Meritech, Greylock, Dragoneer and iNovia, as well as six celebrities.
Investors include rapper Drake, actors Ryan Reynolds and Michael J. Fox, NBA players Kelly Olynyk and Dwight Powell, and NHL athlete Patrick Marleau.
“The financial services industry is in the midst of massive change. Our continued growth and the interest of some of the world’s leading investors prove that Wealthsimple is at the forefront of that change in Canada,” said Wealthsimple Co-Founder and CEO Mike Katchen in a press release.
He plans to use the new money to expand Wealthsimple’s market position, expand its product offering and expand the team.
Starting out as an online investment manager, Wealthsimple has expanded to include Wealthsimple Trade, a commission-free stock trading platform, and Wealthsimple Crypto, which allows users to buy, sell, and hold cryptocurrency assets.
Also earlier this year, Wealthsimple Cash, a peer-to-peer money transfer app that offers automated products for investments, savings and tax returns, was launched.
Wealthsimple raised $ 114 million from TCV, Greylock and Meritech last October on a post-money valuation of $ 1.5 billion.
The funding announced on Monday was led by Meritech and Greylock, but was also supported by DST Global, Sagard, Iconiq, Dragoneer, TCV, iNovia, Allianz X, Basis 10, Redpoint, STEADFAST, Alkeon, TSV and Plus Capital.
The last time Meritech and Greylock jointly led a funding round was Facebook Series B in 2006, Wealthsimple said.
“We are investing in companies with the potential to revolutionize the industry and become permanent market leaders,” said Meritech’s general partner Max Motschwiller in a press release.
“Wealthsimple has succeeded in engaging a generation of financial consumers in Canada with financial products that are very different from what the incumbents offer – simpler, more human, and equipped with the technology that gives consumers the experience they want.”
Meritech has also invested in Salesforce, Nextdoor, Zulily and Lime, while Greylock has backed Airbnb, LinkedIn, Coinbase and Discord.
“Wealthsimple has developed a compelling line of financial products that will delight users and lead to rapid customer growth and highly satisfied customers,” said David Thacker, a Greylock partner, in a press release.
“We are very excited to double our investment and be part of your journey.”