Andy Rachleff

And if you drill down on just an individual market, you find the same thing.

So, for example, ETFs were adopted at a faster rate than index funds, and they just now crossed over index funds in terms of having more assets under management.

Automated investment services have grown and have been adopted at a faster rate than ETFs.

So that gives me faith that ultimately automated investment services are actually going to manage more assets than even ETFs.

Sure, it's around 100,000 clients right now.

Exactly.

Tiny.

We've only addressed a tiny portion.

Well, actually, we manage the first 10,000 on your behalf for free.

Okay.

And then we only charge a quarter of a percent on the amount we manage in excess of $10,000.

And we modeled our business model on that of Dropbox.

Yep.

Just as Dropbox would give you a certain amount managed or stored for free, and then if you invited your friends, you and your friends each got an additional 250 meg.

At Wealthfront, we manage the first 10K for free.

And for every one that you invite, you and your friends each get an additional 5K managed for free.

It's the first time virality has been applied to the investment world.

Well, we focus more on the latter than we do the former.

So it's really a function of our client's satisfaction with our service.

So the more satisfied they are, the larger number of invitations that they send and the greater the percentage of people who send invitations.