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Digital Wealth Management<br />
Wealthfront Overview<br />
Products & Services Overview<br />
Passive<br />
Investing<br />
Tax Aware<br />
Asset Allocation<br />
Landscape Category(s)<br />
Company Overview<br />
Direct-to-Consumer<br />
Digital Wealth<br />
Management<br />
CEO:<br />
Headquarters:<br />
Adam Nash<br />
Palo Alto, CA<br />
Founded: 2011<br />
• Wealthfront is an automated investment service with over<br />
$2.6 billion in client assets<br />
• Through development with Drs. Burton Malkiel and<br />
Charles Ellis, Wealthfront manages a diversified,<br />
periodically rebalanced portfolio of ETFs for investors<br />
• Invests in index funds for<br />
infrequent trading<br />
‒ Reduces trading costs<br />
for Wealthfront<br />
• Attempts to avoid the<br />
behavioral biases of<br />
market-timing and<br />
directional bets<br />
• Tax-inefficient assets like<br />
REITs and taxable bonds<br />
placed into retirement<br />
accounts to take<br />
advantage of tax-free<br />
compounding<br />
• Tax-efficient assets in<br />
taxable accounts<br />
‒ Seeks to minimize tracking error and cost<br />
• A portfolio of $100,000 has fees under $20 per month<br />
• Manages employee accounts of Facebook, Google,<br />
Palantir, Twitter and the San Francisco 49ers<br />
Diversified<br />
Portfolio<br />
Tax-Loss<br />
Harvesting<br />
Date Size ($ mm) Investor(s)<br />
10/28/14 $64<br />
04/02/14 35<br />
03/20/13 20<br />
Financing History<br />
Spark Capital; Dragoneer Investment<br />
Group; Index Ventures; DAG Ventures;<br />
Greylock Partners; Ribbit Capital; The<br />
Social+Capital Partnership<br />
Ribbit Capital; The Social+Capital<br />
Partnership; Index Ventures; Greylock<br />
Partners; DAG Ventures<br />
Index Ventures; The Social+Capital<br />
Partnership; Greylock Partners; DAG<br />
Ventures<br />
12/15/09 8 DAG Ventures<br />
• 11 asset classes including<br />
U.S. and international<br />
stocks, natural resources,<br />
and bonds<br />
• Attempts to decrease<br />
volatility by investing<br />
across asset classes and<br />
by rebalancing to improve<br />
risk-adjusted returns<br />
• Harvests previously<br />
unrecognized investment<br />
losses to offset taxes,<br />
improving performance by<br />
up to 1% per year<br />
• Available for all accounts<br />
Source: Company website, LinkedIn, CrunchBase, PitchBook, IMCA, “ Ready or Not, robo advisors Are Here,” CNBC, “The 49ers’ New Top Secret Weapon: A robo<br />
advisor.”<br />
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