Every world-changing idea started in the mind of someone willing to balance risk with insight and challenge the limits of others' expectations. That's according to Michael Katchen, Wealthsimple's founder. In just ten years after its launch, Wealthsimple has grown into a fintech powerhouse that manages over $50 billion in assets and boasts more than three million clients. 

From zero to $50 billion 

Before founding Wealthsimple, Katchen spent time in San Francisco, where he experienced firsthand the entrepreneurial culture of Silicon Valley. Reflecting on those years, he says, "There is a mindset in San Francisco that is just contagious optimism about, 'Let's go, there's a problem in the world, let's go invent the future that we want to live in.'" This experience left a lasting impact on Katchen and influenced his decision to bring that same entrepreneurial spirit back to Canada. 

"I started Wealthsimple to help some friends invest, and it all grew from there—it was completely organic," says Katchen.

Katchen's business idea came from his time in Silicon Valley, but he was inspired to grow it in Canada.  "When I moved back from San Francisco to Toronto, we raised a small round of capital from some very early believers in the business," he explains. "But, you know, there were scrappy days. The first office for Wealthsimple was my apartment." In those early years, Katchen and his team worked tirelessly to build momentum and attract clients. 

Katchen personally called every user within 30 seconds of signing up to ensure they felt a human connection with the company. This hands-on, customer-centric approach was crucial in building trust and a sense of community, Katchen says, two elements that have become cornerstones of Wealthsimple's brand.

Seeing opportunity early 

Katchen's fascination with investing isn't new—it began at 12 when his tax lawyer father entered a stock-picking contest which introduced him to investing and created a bonding experience that would shape his career. "My dad entered [the contest] under his name, but let me pick the stocks," Katchen remembers. The excitement of watching how his stocks performed sparked a deep fascination in the industry.

Katchen also credits his upbringing and the values instilled in him by his grandmother, who moved from Poland to Canada with almost nothing, as critical factors in fueling his entrepreneurial drive. "The only thing that matters in life is a good name because when you die, it's the only thing you take with you," he says, quoting his grandmother. This lesson in integrity and reputation has become a guiding principle in his personal and professional life. "I think that made a pretty lasting impression on the kind of leader and person I try to be." 

"Just get started, Katchen says. "Many people get stuck waiting to feel 'ready,' but nothing prepares you better than diving in. You'll learn more in the first six months of building a business than in years of preparation." 

Canada as a first choice for business 

His return to Toronto was deliberate. "I made the choice to build a business in Canada," he explains. "I wanted to do what I could to import as much of that Silicon Valley mindset and entrepreneurship culture into the Canadian psyche." Katchen believes that Canada has the potential to compete globally in tech innovation, particularly in fields like artificial intelligence and fintech. "We (Canadians) need to pick our spots, build a density of talent, and put the capital up to really make something special happen," he states. Katchen says he sees a future where Canadian innovation will lead on the world stage. 

A focus on building trust  

Wealthsimple's growth strategy has always centered on building trust and maintaining a client-first approach, according to Katchen. 

Katchen says Wealthsimple uses technology to empower people to pursue their financial ambitions by simplifying wealth management, but this is simply a means to a larger purpose. "Technology is an enabler," he explains. In teaching others how to use technology to reach their financial goals, he believes his company can help the next generation of Canadian investors transform their futures. 

Wealthsimple's approach has resonated particularly well with younger demographics, Katchen says. The average client is under the age of 45 and almost one in five Canadians between 18-40, now use the financial services platform, according to the company. Katchen believes younger investors can and will invest wisely and build wealth if they become educated about the markets and barriers to investment are lowered.  

Lessons from Early Successes and Challenges 

Katchen's early experience with investing with his father also taught him a critical lesson about the risks involved. When the tech bubble burst in the late 1990s his investments evaporated. "It taught me a very painful and important lesson about investing," he reflects. These early experiences have influenced what he calls his cautious yet optimistic approach to Wealthsimple, where the focus remains on providing accessible financial advice. 

"Focus on people, not just passion," Katchen says. "Most (people) get this backwards. Passion isn't always clear, and most of us can be happy working on anything alongside people we respect and enjoy."  

Despite Wealthsimple's rapid rise, Katchen believes the company's growth has been fueled by the hard work and vision of his team and early believers. Today, Wealthsimple has evolved into a platform that offers a full suite of financial services in order to grow alongside their clients. From investing and trading stocks or filing taxes and tailored financial advice, they're offering banking services that the company says will make managing money easier for its clients. Now, with millions of clients and billions under management, he sees Wealthsimple poised to redefine what's possible in the world of investment. 

"The real magic is finding a meaningful problem to work on with inspiring people," Katchen says.