Munich-based digital wealth manager Scalable Capital has received €25 million in a Series C funding round, bringing the total amount raised by the startup to €66 million. The funding comes from the existing shareholders – BlackRock, HV Holtzbrinck Ventures, and Tengelmann Ventures.
Digital wealth management is particularly popular among high earning professionals. Roughly two thirds of Scalable Capital’s customers have a university degree in business, information technology or engineering. On average, the company manages €35k per customer, and one-third of the total assets under management are in portfolios with a balance of more than €100k. In addition, almost every second customer of Scalable Capital has a monthly savings plan averaging €400.
With more than €1.5 billion in assets under management and more than 50,000 client portfolios, Scalable Capital is the market leader for B2C services in continental Europe. The service gives individuals access to all major asset classes and regions, covering more than 8,500 securities. with cost-efficient, passive Exchange Traded Funds (ETFs), and regularly monitors the risks in all of its customers’ portfolios.
Over the past twelve months, Scalable Capital has also significantly expanded its B2B operations and has become the leading European provider of digital wealth management solutions, with partners including ING Bank; the financial division of Siemens, Siemens Private Finance; the digital subsidiary of the Santander Group, Openbank; Oskar GmbH, as well as Targobank.
Founded in 2014, Scalable Capital now employs more than 100 people at its Munich and London offices, including many experts in financial econometrics, computer science and machine learning.
The latest round will be primarily used to expand the software engineering team in order to accelerate business with retail clients and to offer new white-label solutions for banks, insurers, and asset managers.
“This investment acknowledges our work to date and will further accelerate our growth,” said Erik Podzuweit, co-founder and CEO of Scalable Capital. “We want to further cement our leading market position. This new funding enables us to go after even more opportunities and to continue to invest heavily in our talent; pushing our ambitions forward across client segments.”
“Since taking a minority stake in Scalable Capital in 2017, we have seen the company grow into one of Europe’s leaders in digital wealth management solutions,” said Patrick Olson, Chief Product Officer at BlackRock and supervisory board member of Scalable Capital. “We look forward to further supporting the team in their future expansion. We continue to see strong demand for technology-based investment solutions from our clients and Scalable Capital have shown their ability to execute is second-to-none.”
