German robo-adviser Scalable Capital raises £5.6M from
Robo-adviser Scalable Capital, which is set to expand into the UK, has raised £5.6 million in capital.
The firm, which was founded by former Goldman Sachs investment director Adam French, former Barclays vice-president Simon Miller and former chief executive of online retailer Westwing Russia Ella Rabener, will use the new capital to build its business in the UK and support its operations in Germany.
As a result, the total funding for the start up is now £8.8 million.
Scalable Capital has already operated in Germany with a different team. The company is based in both London and Munich. It first received its authorisation from the German regulator BaFin and launched in 2015. It received its authorisation from the Financial Conduct Authority (FCA) to launch in the UK in February.
‘This new capital will allows us to continue building our business in the UK, as well as supporting our operations in Germany and expanding selectively into new markets. Our goal is to become the leading digital investment manager in Europe,’ said French.
‘Our unique and dynamic risk management technology takes the digital investment industry to the next level,’ added French.
Rabener added: ‘We’ve seen great interest from retail investors registering for our UK launch and we’re looking forward to launching the product for our first external investors in April.’
Scalable Capital’s service allocates investors into portfolios of exchange traded funds (ETFs) according to their risk appetites using pre-determined algorithms. These portfolios will be constructed using 14 ETFs divided into equities, bonds, real estate and commodities.
It charges 0.75% per annum, inclusive of account management, custody fees and trading costs.
Source: Scalable Capital Press Release