Canadian online investment firm Wealthsimple is being valued as a unicorn.
The company, which is backed by Power Financial Corp. (TSX: POW), is near a deal to raise money from investors including Technology Crossover Ventures (TCV) that will value it at more than $1 billion U.S., the threshold for achieving “unicorn status” on Wall Street.
Toronto-based Wealthsimple is in the final stages of closing a fresh round of more than $100 million ($76 million U.S.) in funding led by Menlo Park, California-based TCV that values it at more than $1 billion U.S.
In 2019, the company raised capital to develop existing services and new product offerings. Led by Chief Executive Officer Michael Katchen, Wealthsimple positions itself as a low-fee way to invest through its robo-advisory services and commission-free stock trading. It has more than 175,000 users globally who sit in three tiers of membership based on deposit size, according to its website.
The company had previously raised about $190 million U.S., valuing it at $743 million U.S. Wealthsimple’s emphasis on low-cost investment services has drawn comparisons with Robinhood, which received a valuation of $11.7 billion U.S. last month when it raised money from investors.
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