Canada’s Newest Unicorn

Wealthsimple, the Toronto based fintech startup, best known for its savings platform and celebrity marketing, can now call itself a unicorn after raising $114 million at a valuation of $1.4 billion.

Big Deal: The round attracted big name investors. TCV led the round, and will take a board seat. Other new investors include Greylock, Meritech and Two Sigma Ventures, existing investor Allianz X also participated.

Bigger Pool: This unicorn raise helped to significantly broaden the pool of shareholders in Wealthsimple, up until now Power Financial held a 70.1% equity stake in the company, they now hold 61%. The process of casting a wider net started last year with the $100 million investment from Allianz X.

Biggest Threat: Wealthsimple wants to replace Canadian banks who are notoriously entrenched, they are slowly but surely chipping away. The company recently expanded into saving and spending as well as crypto, they also intend to introduce “responsible credit” products like mortgages and “smart insurance” products.

Big Big Picture: Wealthsimple has made it clear they’re getting ready for a go-public. They’re on good footing to do so with $8.4 billion in assets under management, they ranked second to TD last year in share of new accounts opened, and are set for continued growth with their acquisition of SimpleTax and the rollout of new products.