TORONTO Wealthsimple, a Canadian-based robo-adviser startup, announced a C$20 million ($15.25 million) investment from Power Financial Corp, and formally launched in the United States on Tuesday, as it looks to compete in a crowded American market dominated by big investment firms.
Wealthsimple’s national roll-out will make the Toronto-based firm the first foreign robo-adviser startup to enter that market, according to an industry analyst.
Robo-advisers give automated financial advice or portfolio management using technology, and do not use a human financial planner. Their online service is touted as a low-cost, convenient alternative to traditional outfits.
But increasing competition from large, established firms like Charles Schwab and Vanguard have raised questions about the ability of startups to gain enough traction to become profitable.
Founder and chief executive Mike Katchen…