The article discusses how Wealthsimple, a Canadian fintech company, has benefited from the COVID-19 pandemic and retail trading surge. The company’s CEO, Michael Katchen, noted that it had "benefitted in a very outsized way" from the current environment, with significant growth in customers and assets. This growth is attributed to the rise in retail trading by investors who watched stocks collapse in February and March and then decided to jump in amid the subsequent rally.
Wealthsimple’s zero-fee app has enabled this trading activity, allowing users to invest without commission fees. The company has also captured a significant share of new trading clients in Canada, second only to Toronto-Dominion Bank. This is due in part to its "get rich slow" marketing approach, which emphasizes long-term investing rather than short-term gains.
The article also discusses the latest funding round for Wealthsimple, which further diversifies its investors. The company has raised over $315 million from new investors, including TCV, Greylock, Meritech, Two Sigma Ventures, and Allianz X. This investment values Wealthsimple at over $1 billion, making it a unicorn startup.
Overall, the article suggests that Wealthsimple’s success is due to its unique business model, which combines low fees with a user-friendly interface and long-term investing approach. The company’s growth during the pandemic has been significant, and its valuation has increased accordingly.
Key points:
- Wealthsimple has benefited significantly from the COVID-19 pandemic and retail trading surge.
- The company’s CEO noted that it had "benefitted in a very outsized way" from the current environment.
- Wealthsimple’s zero-fee app has enabled retail trading activity, allowing users to invest without commission fees.
- The company has captured a significant share of new trading clients in Canada, second only to Toronto-Dominion Bank.
- Wealthsimple’s latest funding round values the company at over $1 billion, making it a unicorn startup.
