News

Portfolio March 20, 2013

Announcing Our Investment in Wealthfront

Disrupting the model for financial management

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We’re excited to announce our participation in Wealthfront’s most recent financing, led by our good friend at Index Ventures, Mike Volpi. We’re looking forward to continuing to work with Adam Nash, most recently an EIR here at Greylock. Andy Rachleff, Adam, and the entire Wealthfront team have the potential to disrupt the existing model for financial advice & management through software — and we’re glad to have a front row seat.

The asset management industry is enormous, with over $13 trillion dollars of non-institutional, non-401(k) assets in the US alone. Unfortunately, the industry is also rife with hidden fees, conflicting incentives, and inappropriate products. We believe a software-based company has the ability to offer a combination of low price, sophisticated financial advice unmatched by traditional alternatives.

Wealthfront launched its flagship service a little over one year ago, and already they’ve earned the trust to manage over $170M in client assets. When a company sees 70%+ growth in less than three months, the market is definitely signaling a product it wants and needs. With the addition of Burt Malkiel, visionary economist and author of “A Random Walk Down Wall Street”, as Chief Investment Officer, and Adam as Chief Operating Officer, Wealthfront combines the highest quality investment research with the unique capabilities and scalability of software.

Wealthfront promises to take sophisticated financial advice, previously available only to the ultra-wealthy, and put it into software so that anyone can have access to it.

The Wealthfront business is poised for a tremendous next chapter of innovation and growth. They recently introduced automatic rebalancing and continuous tax loss harvesting. With ongoing investment, their software platform will continue to extend in order to address a broad set of asset classes.

We’re excited to partner with Andy, Adam and the entire Wealthfront team. We look forward to supporting them in whatever way we can in this next phase of product innovation and business growth.

“Wealthfront promises to take sophisticated financial advice, previously available only to the ultra-wealthy, and put it into software so that anyone can have access to it.”