Performativ, a Copenhagen-based fintech startup specialising in wealth management technologies, has raised €5.5 million in a Seed funding round. The investment is earmarked to fuel the company’s growth, both in terms of offer on the table and client base.
The €5.5 million Seed round was led by FinTech Collective, and the firm has previously raised $700,000 in a Pre Seed round led by Denmark’s VF Venture, a part of the Danish Growth Fund (Vækstfonden).
Woes of legacy
According to a Microsoft survey, one-fifth of CEE financial institutions alone have not addressed the fact that traditional banks and financial institutions are struggling to keep up in today’s digital-first world, with only about one-third of them having dedicated teams working on it.
Often utilising legacy systems dating back to the 1980s through the early 2000s, this issue is only getting worse, with the banking industry alone spending over $200 billion on technology — and 85 percent of this budget is allocated to “running the bank”, that is, infrastructure maintenance and regulatory updates.
When comprised of some 24,000 firms across the whole of Europe, ranging from large banks to boutique wealth managers, the fiscal problems attached to the woes of legacy begin to compound exponentially.
In line with what a number of incumbents and a recent spike of newcomers have on offer, Performativ steps in to help these financial service players, both large and small, offering a suite of front, middle, and back office tools and optimisations including to ensure a future-forward scalable infrastructure.
Goldman and BlackRock
Leveraging combined experiences at Goldman Sachs and BlackRock, Performativ founders Albert Geisler Fox (CEO) and Peter Barry (CTO) say that their offer can reduce clients’ onboarding time by 200 percent when compared to industry averages, and that once onboarded, reduce operational costs by up to 70 percent.
“We’re not just navigating the wealth management landscape; we’re charting a new course. Our commitment is to understand the industry’s pain points and bridge the gap.
“This funding is a testament to our unwavering dedication to empowering financial institutions and wealth managers with the tools they need to thrive in a rapidly evolving landscape.”
Performativ is handling in excess of €20 billion in assets, including accounts custodied across various tax regimes, with a portfolio spanning from listed equities, to private equity, to real estate, to infrastructure assets, and more.
Lead image: The Perfomativ management team. Photo: Uncredited.