Upvest might not be a familiar name if you don’t pay close attention to the fintech industry, but chances are you’ve already interacted with the company’s products.
Founded by Martin Kassing (pictured above), the Berlin-based startup builds a white-label investment platform that is used by some of the biggest fintech companies in Europe. Upvest clients include Bunq, N26, Plum, Raisin, Revolut, Shares and Vivid. Overall, 50 million people can access Upvest’s trading platform.
Signing all these big names as clients led to today’s news: Upvest is announcing a €100 million Series C round (or around $105 million at current exchange rates).
Hedosophia, a VC firm that used to be somewhat secretive about their portfolio, is leading the round. Sapphire Ventures is also investing, as well as existing backers Bessemer Venture Partners and BlackRock.
While Upvest isn’t disclosing its valuation following the Series C round, the company said it’s “significantly higher” than its previous valuation (after its $42 million Series B).
“We believe their full-stack system addresses the unique challenges of enterprise banks, fintechs, and D2C platforms with exceptional usability, innovation, and resilience,” Sapphire Ventures partner Andreas Weiskam said in a statement.
Companies that use Upvest’s API can offer fractional stock trading and access to other financial products, such as exchange-traded funds (ETFs) and mutual funds. The company doesn’t want to stop here as it plans to offer crypto, derivatives, ELTIFs (European Long-Term Investment Funds), and bonds in any currency in the near future.
In 2024 alone, Upvest has processed 20 million orders. That figure should be much higher next year as the company has seen around one million trades per week recently. The startup also plans to sign new customers as it recently obtained an authorization from the Financial Conduct Authority (FCA) to operate in the U.K.
While Upvest can accept clients across the Eurozone and U.K., the company still has some work to do to offer a trading platform that feels truly local in all markets since many customers prefer to invest through special investment accounts.
For instance in France, a regulated savings account that allows you to investment in a portfolio of shares of European companies — which is called a PEA (or Plan d’Épargne en Actions) — is particularly popular. Such accounts have been designed to encourage individuals to hold shares and securities over the long run. If they hold their positions for at least five years and make a profit, they get a preferential tax treatment.
Similarly, the U.K. has other popular products like ISA (a tax-free savings account) and SIPP (a pension wrapper).
Upvest is well aware of these geographic differences and plans to add support for local solutions in the future.
Such additional features will create a barrier to entry for competitors trying to build a white-label investment platform. But on the topic of competitors, Bitpanda also offers a white-label solution that has been used by fintechs Lydia and N26 (for the crypto investment features).
These companies aren’t just trying to build the best technological platform. They have to secure licenses, sign new partners, and scale with their clients. And Upvest now has plenty of money in the bank to support its next 50 million customers.
