Wealthfront Valuation Said to Drop About a Third in New Funding
- Increased competition said to weigh on valuation in new round
- Tiger Global Management led the financing, closed in December
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Wealthfront Inc.’s valuation was cut by about a third in its most-recent funding round after rising competition dented optimism about the startup, according to people familiar with the matter.
The digital wealth-management startup, which amassed over $10 billion in assets under management since launching in late 2011, is now valued at around $500 million, the people said. They asked not to be named discussing private matters. The latest fundraising, which closed late last year, brought in $75 million. The last time the Redwood City, California-based company raised funds, in 2014, it was said to be valued at about $700 million.