Berlin’s neobroker Trade Republic has raised $900 million in a Series C investment round led by Sequoia. New investors TCV and Thrive Capital participated and existing investors Accel, Founders Fund, Creandum, and Project A all followed on. Trade Republic is reporting that the fresh raise will be used to continue its mission to provide millions of Europeans with free access to capital markets, expand further into European markets, and recruit top talent.
“The democratization of financial markets will be one of the most important consumer trends of the next decade,” says Sequoia’s Doug Leone. “Trade Republic is on the leading edge of this trend and has attracted an untapped generation of European savers who demand increased financial accessibility.”
Founded in 2015 by Christian Hecker, Marco Cancellieri, and Thomas Pischke, Trade Republic is currently valued at over $5 billion, and within a short 24 months has reached over one million customers in Germany, France, and Austria.
The past year and some have drastically changed the financial markets, particularly in the way of savings and pensions. Negative interest rates and inflation are particularly challenging in the European marketplace, resulting in a growing-by-the-day pension gap. Trade Republic is stepping up its game and providing a mechanism for millions of Europeans to invest their money in capital markets with its commission-free service.
“Fifty percent of Trade Republic’s customers, over 500k people, have never invested in capital markets before in their life. We empower people to start with wealth creation, who have been neglected by big banks for too long, with high fees and opaque products,” adds Thomas Pischke, co-founder. “With over €6B in Assets under Management, we are the core savings account for our customers.”
The secret sauce at Trade Republic lies in an ETF or fractional stock savings plan. This method allows individuals to invest free of charge over time and on a regular basis. In addition to equities, Trade Republic has recently opened its doors to cryptocurrencies, reflecting the market demand to adjust to the aforementioned inflation and negative interest rates.
“We are very excited to partner with Sequoia, TCV and Thrive. The strong continuing interest of leading investors proves Trade Republic’s progress in redefining how people can save their money. We will use this funding to create the most innovative investment products for our customers, expand across Europe and attract the best global talent. We expect this to accelerate our growth so we can reach millions of Europeans and ensure that everyone has access to the simplest, most powerful financial services no matter who they are, where they are in their financial lives and how much they earn,“ adds Christian Hecker.