With the democratisation of private markets and stock market volatility, high net worth individuals, retail investors and their advisors are looking for alternative investments to benefit from high returns. However, retail access to private equity funds for individuals remain low. Addressing the gap, German fintech company Moonfare has raised a $35 million funding from London-based private equity firm Vitruvian Partners, which has earlier invested in Just Eat , Farfetch, Transferwise and Trustpilot.
The funding will come in handy as the startup is gearing up to fuel its global expansion. The company entered the U.S. market this January after it raised a massive $125 million funding in November last year.
Equipped with fast and easy-to-use digital platform, the startup offers retail investors access to select, top-tier private market funds and venture capital funds that were previously only available for institutions.
Steffen Pauls, founder and CEO, Moonfare said: “With current geopolitical changes and market uncertainties, our growth and global expansion indicates a growing demand for the digital private market investing opportunities we offer.”
Thomas Studd, partner, Vitruvian added: “Private equity investments are barely available to retail investors, despite significant take-up by sophisticated institutional investors around the world. Moonfare’s offering addresses that gap and its exceptional growth rates clearly show pent-up consumer demand.”