San-Francisco based startup NerdWallet raised $64 million in its first round of funding, which is more than what is needed to run a personal finance startup.
NerdWallet is a personal financing startup that assists its customers is selecting the best and effective life insurance plans and help them in making financial decisions during critical situations. However, currently the company is targeting on the content business. It competes with Bankrate and Credit Karma and generates revenue by matching its customers with right financial products needed for its consumers.
Previous to this funding, the company managed to raise $36 million as a loan from the Silicon Valley Bank. According to the sources, the current funding is from the angel investors from the financial technology sector and the round was led by Institutional Venture Partners alongside with RRE Ventures and iGlobe Partners. A person familiar with the happenings said, “Once a company hits a US$1 billion valuation, it becomes what Silicon Valley calls a ‘unicorn’.” Since the beginning of 2014, just eight US startups have raised Series A funding rounds of US$50 million or more, according to the consultancy, CB Insights.
The company has already roping in top officials like engineers and product managers from top companies like LinkedIn Corp and Twitter Inc and paying them with huge first check from top venture capitalist firms will help the company attract more intellectual assets into the company from other companies in the job market which is considered very tough. “I really think that winning in this market is about attracting the best talent out there. The more talent, the better,” said founder and CEO of NerdWallet Tim Chen about his personal-finance advice company.
The whole strategy of the company makes sense, said a recruiter. “It is like a seal of approval,” said Karen Myers, co-founder of the Talent Farm.