Nest Wealth receives close to $50 million in new deal with National Bank

Nest wealth

Toronto-based digital wealth management platform startup Nest Wealth has received a new investment with an approximate value of $50 million from National Bank, through its corporate venture capital arm, NAventures.

“Partnerships between established financial institutions and agile FinTech firms represent the future of our industry.”

This new capital represents National Bank’s second investment into Nest Wealth. The bank called this round a “strategic minority investment,” and said the two companies will also “extend the scope” of their commercial agreement. Randy Cass, founder and CEO of Nest Wealth, said in a blog post the funding allows the company to remain an independent FinTech startup, noting that Nest Wealth remains majority controlled by employees and management.

A spokesperson from National Bank confirmed to BetaKit that the deal was valued between $40 million and $50 million.

“Nest Wealth is excited to deepen our partnership with the forward-thinking team at National Bank,” said Cass. “This is a bold next step in our collaboration to provide the clients they serve with the best digital wealth solutions available. Mutually beneficial partnerships between established financial institutions and agile FinTech firms represent the future of our industry and we’re proud to be making this transformative move, together.”

National Bank invested $6 million into Nest Wealth in 2017. That deal was part of multiple agreements between Nest Wealth and National Bank, which included Nest Wealth licensing its investment technology to the National Bank to help its advisors manage clients’ money using digital practices.

The most recent expansion of the companies’ commercial agreement will allow National Bank to accelerate the development of some of its digital initiatives, including those targeted toward portfolio managers and retail banking clients.

RELATED: National Bank investing $6 million in Nest Wealth, plans to integrate its robo-advisor tech

“[The expanded commercial agreement] will especially benefit the portfolio managers and independent brokers who do business with National Bank Independent Network (NBIN), as well as retail clients, who will enjoy the improved features rolled out via the National Bank savings experience,” National Bank said.

Founded in 2014, Nest Wealth’s platform uses technology to create and monitor investment portfolios for investors and businesses. The company’s main product, Nest Wealth Pro, provides traditional advisors and their firms with the same technologies that robo-advisors use.

Clients can sign up with advisors through a digital onboarding process, which includes the collection of know-your-client and risk profile information. Last year, Nest Wealth acquired Razor Logic Systems, the creator of RazorPlan, a Canadian financial planning software solution.

NAVentures invests in, partners with, and scales early to mid-stage FinTech companies. This week, NAVentures led the $16.2 million Series A round of Montreal-based Flinks, which helps financial institutions gain new insights.

Image source Nest Wealth.

Isabelle Kirkwood

Isabelle Kirkwood

Isabelle is a Vancouver-based writer with 5+ years of experience in communications and journalism and a lifelong passion for telling stories. For over two years, she has reported on all sides of the Canadian startup ecosystem, from landmark venture deals to public policy, telling the stories of the founders putting Canadian tech on the map.

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