Financing from Iconiq Capital and others restores Wealthsimple’s valuation to its prior high-water mark set at the peak of the pandemic tech frenzy in spring 2021.Wealthsimple Technologies Inc. is capping off the best year since its founding a decade ago with a secondary financing valuing the online investment manager at $5-billion, making it one of Canada’s most highly valued private technology companies.
The average age of its clients has increased to the mid-30s, while the number of clients with $500,000 or more in assets with Wealthsimple has quadrupled in the past year. The surge in Wealthsimple’s business comes two years after its growth stalled as interest rates spiked and markets swooned, prompting Power toBut as Wealthsimple’s business has expanded sharply since late 2023, Power has written its holdings back up in each of the last four quarters. Power valued its consolidated stake at $2.2-billion on Sept. 30, reflecting the pricing of the impending secondary deal.