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Andy Rachleff, president and CEO of Wealthfront. He served as a member of the board of trustees and vice chairman of the Endowment Investment Committee for the University of Pennsylvania and as a member of the faculty for Stanford Graduate School of Business where he teaches course on Technology Entrepreneurship. Prior to Wealthfront, Andy co-founded and was general partner of Benchmark Capital, where he was responsible for investing number of successful companies. He has also spent 10 years as a general partner for Merrill, Pickard, Anderson & Eyre - MPAE. Andy earned his S from University of Pennsylvania and his MBA from Stanford Graduate School of Business.

Famous Five:

• Favorite Book? \\u2013 The Innovator\\u2019s Dilemma
• What CEO do you follow? \\u2013\\xa0 N/A

• Favorite online tool? \\u2014 N/A
• Do you get 8 hours of sleep?\\u2014 No
• If you could let your 20-year old self, know one thing, what would it be? \\u2013 \\u201cAssociating myself with great people\\u201d

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Time Stamped Show Notes:

• 01:41 \\u2013 Nathan introduces Andy to the show
• 03:03 \\u2013 Andy is retired for his Venture Capital business so he wants to give back
• 04:07 \\u2013 David Swensen has been an investor on Andy\\u2019s 2 venture capital firms
• 04:37 \\u2013 The way Wealthfront generates investment mix is the same method David Swensen uses
• 05:09 - Wealthfront manages a diversified of portfolio of low-cost index funds in behalf of their client
• • 05:20 \\u2013 Minimum is $ 500 to open an account
• 05:55 \\u2013 \\u201cIf you like Vanguard, you\\u2019re going to love Wealthfront\\u201d
• • 06:00 \\u2013 Wealthfront can minimize taxes using a software that Vanguard can\\u2019t do
• 07:59 \\u2013 Software works 24/7 so you can monitor your losses daily
• 08:36 \\u2013 Wealthfront has been managing around $ 4.4B assets
• 08:53 \\u2013 Wealthfront\\u2019s asset management worth is much smaller than Vanguard
• 09:25 \\u2013 \\u201cWith every new technology that succeeds, it gets adopted at a faster rate\\u201d
• • 09:47 \\u2013 Automated Investment Services has been adapted at a faster rate than ETF
  • 10:09 \\u2013 Automated Investment Services are actually managing more assets than ETF
• 10:21 \\u2013 Volume of individual metrics
• 10:54 \\u2013 Wealthfront manages the first $ 10,000 for free and charges a quarter of a percent on a amount managed excessing $ 10,000
• • 11:10 \\u2013 Sample model is Dropbox
• 12:00 \\u2013 \\u201cIt is more of the client\\u2019s satisfaction of our service\\u201d
• 12:25 \\u2013 Percentage of sent invites by users
• 13:01 \\u2013 The number of people actually invested in Wealthfront
• 13:51 \\u2013 Average MRR
• 14:04 \\u2013 Overtime, Wealthfront will introduce new services
• 14:51 \\u2013 Wealthfront is a hybrid of old model and also new channels in the software
• • 15:28 \\u2013 \\u201cWe want to build services that benefit our clients
• 16:03 \\u2013 Wealthfront\\xa0 was launched in Dec 2011
• 16:12 \\u2013 Team size is about 140
• 16:15 \\u2013 Total capital raised is $ 130M
• 17:15 \\u2013 \\u201cI\\u2019m willing to sacrifice some growth for a far more sustainable model\\u201d
• 17:55 \\u2013 Connect with Andy through his email and Twitter
• 16:10 \\u2013 The Famous Five

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3 Key Points:

• With every new technology that succeeds, it gets adopted at a faster rate.
• Sacrifice some growth for a far more sustainable model.
• Associate yourself with great people.

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Resources Mentioned:

• Acuity Scheduling \\u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
• Drip \\u2013 Nathan uses Drip\\u2019s email automation platform and visual campaign builder to build his sales funnel
• Toptal\\xa0\\u2013 Nathan found his development team using Toptal for his new business Send Later. He was able to keep 100% equity and didn\\u2019t have to hire a co-founder due to the quality of Toptal
• Host Gator\\xa0\\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible
• Audible\\xa0\\u2013 Nathan uses Audible when he\\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books
• The Top Inbox\\xa0 \\u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens and follow-up with email sequences
• Andy@Wealthfront.com \\u2013 Andy\\u2019s email address
• @Arachleff \\u2013 Andy\\u2019s Twitter handle
• Show Notes provided by Mallard Creatives