Munich-Based Fintech Startup Scales Up with Major Investment Round
Scalable Capital, the innovative robo-advisor platform headquartered in Munich, has successfully raised €50 million (\(58 million) in a Series D funding round, achieving a post-money valuation of €400 million (\)460 million). This significant investment underscores the growing demand for digital wealth management solutions across Europe.
Key Investment Highlights
- Valuation: $460 million post-money
- Total Raised: €116 million ($133 million) to date
- Investors: BlackRock, HV Holtzbrinck Ventures, and Tengelmann Ventures participated in the round
- Customer Base: 80,000+ users across Germany, Austria, and the UK
- Assets Under Management: Exceeds $2 billion
The Rise of Digital Investment Platforms
The fintech sector continues to disrupt traditional wealth management through:
- Cost Efficiency: Flat €2.99 monthly fee structure
- Accessibility: User-friendly platform for ETFs and stock trading
- Dual Approach: Operates both B2C and B2B models
“Our digital-first model has proven resilient during COVID-19,” said co-founder and co-CEO Erik Podzuweit. “This funding validates our strategy to democratize wealth management through technology.”
Market Trends Driving Growth
- Pandemic Acceleration: Social distancing measures have increased demand for digital financial services
- Competitive Landscape: Compe*****s like Trade Republic and Robinhood are also securing major funding
- Generational Shift: Younger investors embracing tech-driven solutions
Strategic Expansion Plans
Scalable Capital intends to utilize the fresh capital to:
- Enhance product offerings for existing customers
- Expand further in current markets
- Potentially enter new European territories
The company’s unique hybrid model serves both individual investors and major financial institutions including Barclays, ING Deutschland, and Santander’s Openbank.
The Future of Robo-Advisory Services
With its:
- Academic Foundation: Co-founded by financial econometrics expert Dr. Stefan Mittnik
- Proven Track Record: Rapid growth since 2014 launch
- Balanced Revenue: Current 50⁄50 split between B2B and B2C segments
Scalable Capital is well-positioned to capitalize on the ongoing digital transformation in wealth management. The company’s Prime Broker service, offering flat-rate trades, particularly appeals to younger investors who are approximately a decade younger than its wealth management clientele on average.
This funding round signals strong investor confidence in the future of automated investment platforms, even amidst broader economic uncertainty. As traditional banking models face increasing pressure to innovate, Scalable Capital’s technology-driven approach offers a compelling alternative for modern investors.
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