London/Munich, 6 April 2016 Digital investment manager Scalable Capital today announced the signing of a series-A funding round of £5.6 million. The funding round was led by existing investors Holtzbrink Ventures, Peng T. Ong’s Monk’s Hill Ventures, The German Startups Group and MPGI. The round takes the total funding for the London- and Munich-based start-up to £8.8 million, making it one of the best-funded fintech start-ups in Europe.
“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,” said Adam French, co-founder and Managing Director of Scalable Capital. “We’re delighted to welcome two new entrepreneurial investors on board, joining our already formidable list of venture capital backers.”
“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,” said Christian Winter, CEO of Tengelmann Ventures.
“Digital investment management is the most exciting topic within the fintech space and it has the potential to make a lasting impact on how people will invest their money. We believe that Scalable Capital has the best product in this nascent industry. Having worked with the team for more than a year has reinforced this belief and we want to support them in their growth by increasing our commitment“, said Rainer Maerkle, Partner with Holtzbrinck Ventures.
ETF portfolios are dynamically adjusted
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. This state-of-the-art technology is an institutional class investment product, available, for the first time, to retail investors, at a fraction of the cost.
“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.”
Scalable Capital is regulated by the FCA in the UK, and by BaFin in Germany.