Analysis of Venture Investment Activity for Digital Wealth Start-ups

Autonomous Research has analysed Venture Investment Activity within the digital wealth sector starting from 2008.  The findings show a surge in venture funding with investments reaching $615 million in 2014 compared to $194 million in 2013. The vast majority of capital was raised in North America, giving rise to digital wealth management start-ups such as Wealthfront and Personal Capital. In 2015, venture funding doubled to $1.3billion resulting from increased investment in Asia and start-ups such as Chunhua Wealth and Wacai.com entered the scene. With considerably smaller venture activity in Europe (and other regions) and investment reductions in Asia in 2016, North America is accounting for the majority of support for digital wealth entrepreneurs.

The second chart analyses the number of companies with seeding rounds targeting digital wealth start-ups across the same time period. We find a surge in companies providing venture funding across all regions from 2014: 56 companies in 2013 to 115 in 2016. Breaking down the companies by region re-affirms that North America offers the majority of venture funding in the wealth tech sector and support of digital wealth start-ups.