Digital investment manager Scalable Capital today announced the signing of a Series A funding round of €7 million. The round was led by existing investors Holtzbrink Ventures, Peng T. Ong’s Monk’s Hill Ventures, The German Startups Group and MPGI. The new capital takes the total amount of funding for the Munich- and London-based startup to about €10.9 million, making it one of the best-funded fintech startups in Europe.
Scalable Capital was founded in 2014 and offers an technology-driven investment service. The young company uses proprietary software to offer investment portfolios which are dynamically optimised with a primary focus on risk management.
Adam French, co-founder and Managing Director of Scalable Capital stated: “This new capital will allows us to continue building our business in the UK, as well as supporting our operations in Germany and expanding selectively into new markets. Our goal is to become the leading digital investment manager in Europe,”
Christian Winter, CEO of Tengelmann Ventures commented: “We believe that Scalable Capital has the potential to become Europe’s leading digital investment manager. Like the robo-advisors that came before it, Scalable Capital offers a streamlined online onboarding & risk assessment process, but unlike its competition, the company uses sophisticated risk management technology to automate the investment process. We’re excited by the strong interest in its product in both the UK and Germany, and are looking forward to supporting the company as it continues to grow,”
Scalable Capital’s proprietary technology dynamically allocates each investor’s portfolio based on a quantitative measure of their risk appetite. The technology uses forward-looking projections, based on recent market developments, to measure the level of risk in the ETF products the client is invested in, and then reallocates their portfolio according to their risk category. In contrast to traditional and other digital wealth managers, Scalable Capital adopts a fluid approach to the weighting of asset classes in its portfolios. This allows investors to capitalise on markets where risk is rewarded, and limit exposure to excess risk in more volatile conditions. Scalable Capital is regulated by the FCA in the UK, and by BaFin in Germany.
“The reaction from our initial clients in Germany has been overwhelmingly positive, and many have come back to us to commit more funds to our platform,” said Dr. Ella Rabener, CMO of Scalable Capital and co-founder of Scalable Capital UK. “We’ve seen great interest from retail investors registering for our UK launch and we’re looking forward to launching the product for our first external investors in April.”
For more info on Scalable Capital check out the short video below: