Wealthfront Goes Public with $2.1 Billion Valuation

Wealthfront made its public debut today, raising $485 million and achieving a market valuation of $2.1 billion. The Palo Alto-based fintech, known for its automated investing portfolios, saw its stock trade relatively flat, closing up just 1% on its first day. The company now serves 1.3 million customers and manages approximately $90 billion in assets, solidifying its position as a major independent player in the digital wealth space following a shelved acquisition attempt by UBS in 2022.

Financial disclosures reveal that the company has reached profitability, a significant milestone for standalone robo-advisors. For the fiscal year ended July 31, 2025, Wealthfront reported $339 million in revenue—a 26% increase year-over-year—and $123 million in net profits. Much of this recent success is attributed to its high-yield cash accounts, which have attracted substantial assets. Moving beyond automated investing, the firm recently announced plans to expand into the mortgage market to broaden its service offering.

The successful listing turns a failed $1.4 billion buyout into a larger exit for long-time backers like Tiger Global, DAG Ventures, Index Ventures, and Ribbit Capital. CEO David Fortunato, who took the helm in 2021, emphasized a focus on product development immediately following the listing. With nearly half a billion dollars in fresh capital and a profitable business model, Wealthfront is now positioned to compete more aggressively against both traditional incumbents and fellow fintech challengers in the race to serve mass affluent investors.

Knote: It wasn't a 90s-style "big pop" affair, but it was priced a good 50% above the 2022 UBS bid, so backers can't be complaining. What remains to be seen is if this will help encourage people to start investing in VC funds again, the relative absence of which has been a drag on the early-stage funding markets. In theory, we could perhaps see some return boosts from early Wealthfront backers, including DAG, which invested way back in 2009 when the company was called "kaChing".