Participated · Equity · May 2016

Scalable Capital is a vertically integrated digital retail investment platform that provides European retail investors with low‑cost, broadly diversified investment options. Founded in 2015, the company has expanded its product set to include ETFs, stocks, funds, bonds, cryptocurrencies, derivatives and private equity via ELTIFs for eligible clients. It recently launched the European Investor Exchange, an exchange tailored to the needs of retail investors. Broker clients receive attractive interest rates on cash from partner banks and have instant access to low‑cost securities‑backed loans against their portfolios. Starting this summer Scalable will offer kids’ accounts so parents can invest for their children’s financial future. The company completed a €155 million funding round and investors have now invested over €470 million in Scalable to date, supporting further product expansion across Europe. Scalable Capital is a Munich, Germany–based digital investment platform that provides retail investors with an investing app and a full-service brokerage. The app allows clients to invest in ETFs, stocks, funds, bonds, cryptocurrencies and derivatives, with over two thirds of the money invested in ETFs. Led by Co-CEOs Erik Podzuweit and Florian Prucker, the company expanded its brokerage into Austria, France, Italy, Spain and the Netherlands over the past two years. Scalable Capital raised a €60M Series E extension in a round led by Balderton Capital, with participation from existing investors including HV Capital. The company intends to use the funds to deliver further growth. The article did not disclose other financial metrics or revenue figures. Founded in 2014 and headquartered in Munich, Scalable Capital operates a digital investment platform with over 250,000 clients and more than $5 billion in assets under management. The platform offers fully managed, globally diversified ETF portfolios alongside self-directed trading in shares, ETFs, cryptocurrencies, and funds, plus market-leading monthly savings plans for ETFs, stocks, and crypto. Its product catalogue includes over 1,500 ETFs, more than 4,000 shares, and 2,000 funds. Scalable reports offices in Munich and Berlin and an office in London, though it is no longer accepting new clients on its UK platform. The company says it will use new funding to push international expansion and further develop its product, and it plans to launch derivatives trading next. Scalable Capital operates a robo-advisor platform that lets users monitor and manage investment portfolios, invest in shares, execute trades and access ETFs for a flat €2.99 monthly fee. The company serves about 80,000 customers across Germany, Austria and the UK and reports more than $2 billion in assets under management. It sells both B2B technology to banks and a direct-to-consumer offering; B2B and B2C revenues are roughly split 50/50. The B2C service launched in June and has been growing quickly, while the company also partners with banks and platforms including Barclays, Raiffeisen Banking Group Austria, Raisin, ING Deutschland and others. Management says it will use the funding to build more products for existing customers, add more customers in current regions and potentially expand to additional European countries. The company was co-founded in 2014 and is headquartered in Munich. Scalable Capital offers digital wealth management using passive ETFs and systematic risk monitoring across more than 8,500 securities to deliver diversified portfolios. The company serves over 50,000 client portfolios and manages more than €1.5 billion in assets, with an average of €35k per customer and roughly one-third of AUM in portfolios above €100k. Almost every second customer has a monthly savings plan averaging €400. Over the past year Scalable Capital significantly expanded its B2B operations and counts partners including ING Bank, Siemens Private Finance, Openbank, Oskar GmbH and Targobank. Founded in 2014, the company employs more than 100 people across Munich and London, including specialists in financial econometrics, computer science and machine learning. The firm plans to use new funding to grow its software engineering team, accelerate retail business and roll out new white-label solutions for banks, insurers and asset managers.