For those who don't pay attention to the fintech industry, Upvest may not be a familiar name, but chances are you've already used the company's products.
Founded by Martin Kassing (pictured above), the Berlin-based startup is building a white-label investment platform used by some of Europe's biggest fintech companies. Upvest's customers include Bunq, N26, Plum, Raisin, Revolut, Shares, and Vivid. Overall, 50 million people have access to Upvest's trading platform.
The signing of all these celebrities as clients led to today's news. Upvest announced a Series C round of €100 million (approximately $105 million at current exchange rates).
A VC firm called Hedosophia, which has previously been somewhat secretive about its portfolio, is leading this round. In addition to Sapphire Ventures, existing backers Bessemer Venture Partners and BlackRock are also investing.
Upvest did not disclose its valuation after the Series C round, but the company said it was “significantly higher” than its previous valuation (after the $42 million Series B).
“We believe our full-stack system can address the unique challenges of enterprise banking, fintech, and direct-to-consumer platforms with ease of use, innovation, and resilience,” said Andreas Weiskam, partner at Sapphire Ventures, in a statement. ” he said.
Companies using Upvest's API can offer fractional share trading and access to other financial products such as exchange-traded funds (ETFs) and mutual funds. The company does not want to stop here, as it plans to offer cryptocurrencies, derivatives, ELTIF (European Long Term Investment Fund) and bonds in any currency in the near future.
In 2024 alone, Upvest processed 20 million orders. The company has recently been doing about 1 million transactions per week, so this number should be even higher next year. The startup recently received permission from the Financial Conduct Authority (FCA) to operate in the UK and is also planning to sign up new customers.
Although Upvest can accept clients across the Eurozone and the UK, many clients prefer to invest through special investment accounts, providing a trading platform that feels truly local in all markets. There is still some work to be done.
In France, for example, regulated savings accounts (called PEAs (or Plan d'Epargne en Action)) that allow you to invest in portfolios of shares in European companies are particularly popular. Such accounts are designed to encourage individuals to hold stocks and securities for the long term. If you hold the position for at least five years and make a profit, you will receive tax benefits.
Similarly, the UK has popular products such as ISAs (tax-free savings accounts) and SIPPs (pension wrappers).
Upvest is fully aware of these geographic differences and plans to add support for local solutions in the future.
These additional features create a barrier to entry for competitors looking to build white-label investment platforms. But speaking of competitors, Bitpanda also offers white-label solutions used by fintech companies Lydia and N26 (for crypto asset investment functionality).
These companies aren't just trying to build the best technology platform. You need to secure licenses, sign new partners, and scale with your clients. And Upvest now has enough money in the bank to support its next 50 million customers.