Online Brokerage Wealthsimple, Backed by Rapper Drake, Raises Money at $4 billion Valuation

ATLANTA, GA - DECEMBER 17: Drake attends OVO Chubbs Birthday Celebration at Allure on December 17, 2019 in Atlanta, Georgia.(Photo by Prince Williams/Wireimage)

Wealthsimple, an online brokerage part of the Power Corporation of Canada, raised $610 million in its latest fundraising round, that values it at about $4 billion, from more than 15 venture capital investment firms including Meritech, Greylock, Dragoneer and iNovia and six celebrities.

The star-studded list of investors includes rapper Drake, actors Ryan Reynolds and Michael J. Fox, NBA players Kelly Olynyk and Dwight Powell and NHL athlete Patrick Marleau.

The Toronto-based company began as an investment manager and trading app, but went on to rapidly expand its business. It now offers services including commission-free stock trading, crypto trading, automated investing, and peer-to-peer cash transfers.

The brokerage, which counts over 2 million users and holds $8.4 billion in assets under management, is cashing in on the past year’s surge in retail investing that helped boost the popularity of other trading platforms like Robinhood.

“More than two million Canadians use Wealthsimple to grow their money, file their taxes, pay their friends, and make their financial lives better,” CEO Mike Katchen said in a statement. “This investment will fuel our growth so we can reach millions more and ensure that everyone has access to the simplest, most powerful financial products and services, no matter who they are or where they are in their financial lives.”