CREANDUM AND PROJECT A LEAD TRADE REPUBLIC BANK'S EUR10 MILLION SERIES A
- Germany's first mobile-only and commission-free broker receives fresh capital to invest in expansion of offering and dynamic growth
- The financing round is led by leading European VC Creandum; Berlin VC Project A as Co-investor
- Just a few months after launch, already a five digit number of customers invest with Trade Republic
BERLIN, 16th JULY 2019
Trade Republic Bank, the mobile-only and commission-free broker, announces a EUR10 million Series A round to expand its pioneering role in Europe. The financing is led by Creandum, which has invested in some of Europe's leading technology companies including Spotify, iZettle and Klarna. Berlin based Project A joins as Co-investor in Trade Republic. The transaction is subject to the successful qualifying holding procedure by regulatory authorities.
"Following our successful launch, the fresh capital will enable us to accelerate our growth and drive our vision of providing mobile, easy and free stock market investing for everyone. We will expand our offering with new asset classes and app features. In the mid term, we will bring Trade Republic to further European markets," says Christian Hecker, Co-Founder of Trade Republic. "We are very excited to be backed by Creandum and Project A. These two strong and experienced investors are joining us on our mission to build Europe's first Neo Broker."
Launched in January 2019, Trade Republic Bank introduced mobile and commission-free brokerage to Europe. The app combines an intuitive user experience to invest into capital markets with three taps on your mobile device, with the quality and security of a German bank. In addition, Trade Republic frees its customers from expensive and complex order commissions. For all asset classes and order sizes, investors only pay a fixed fee of one Euro per trade to cover the external costs of the transaction. Trade Republic's offering is striking a chord with potential customers: Just a few months after launch, already a five digit number of customers invest with Trade Republic.
"With a beautiful product, its innovative banking technology and strong customer growth, Trade Republic is well equipped to disrupt brokerage in Europe", explains Johann Brenner, General Partner at Creandum. "The Trade Republic app re-invents the way people can invest their money with a fair and transparent price advantage. We are very excited to work with the team and build a long-term partnership with Trade Republic"
"Investments in equities - directly or indirectly via ETFs - are essential for private investors in order to have the chance of a considerable return in a low-interest rate environment. In Germany in particular, there is great potential for a significant increase in the number of shareholders. Trade Republic Bank is focusing on two key areas in order to make stock trading significantly more attractive for existing and new target groups: On the one hand by an unmatched low price for trading, on the other hand by the very fast accessibility of the investment opportunity via the intuitive mobile app. We are very pleased to provide support on this journey," says Florian Heinemann, General Partner at Project A.
"We are proud that Trade Republic has reached another major milestone with the investments made by successful venture capital investors Creandum and Project A. With fresh capital, the founders and their excellent team have the opportunity to further build their vision to make Trade Republic a synonym for mobile brokerage in Europe. We will actively support this together with the new investors," explains sino's CEO Ingo Hillen. Sino AG has has been an investor in Trade Republic since 2017 and has made significant contribution to the company's success since then. 2018 Ingo Hillen became also a managing director of Trade Republic Bank.
In addition to renown partners such as HSBC and solarisBank, Trade Republic is now backed by international technology investors. The Fintech company will use the investment by Creandum and Project A to further improve and expand its offering. Customers can already invest in over 6,500 German and international stocks as well as more than 500 ETFs, without paying any order-commission. Starting today, investors can also trade a broad range of derivatives commission-free within the app. Therefore, Trade Republic provides the easiest, convenient and cost-effective solution for any investment strategy - from diversified ETFs over single stocks up to long and short derivatives. The Berlin based Fintech company's offering will be further improved by the elimination of fees for foreign dividends and the new stop loss order function.
Partnerships with HSBC and solarisBank guarantee a high level of quality and security. Trade Republic Bank holds a German banking license and is supervised by Germany's Bundesbank and Bafin, the Federal Financial Supervisory Authority. The company has raised over EUR17 million in total so far.
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ABOUT TRADE REPUBLIC
Trade Republic Bank is Germany's first mobile-only and commission-free broker. Users only pay a fee of one euro per transaction for the external settlement. The Berlin fintech's intuitive app provides fast, mobile account opening, intuitive search and filter functions, a personal timeline as well as extended trading hours from 7:30 am to 11 pm.
Investors can trade more than 6,500 German and international stocks as well as over 500 ETFs on indexes, commodities and currencies commission-free. Stock price quality is supervised by the Hamburg stock exchange. Spreads are bound to the reference market XETRA (Deutsche Börse) when applicable. In addition, around 40,000 HSBC Germany derivatives based on indexes, currencies and commodities can be traded commission-free. With its cutting-edge technology, Trade Republic realizes cost advantages and passes them on to its cutomers: no commission fees, no account fee, no negative interest rates - just a flat rate of 1 euro per trade for third-party fees. Trade Republic cooperates with renowned partners like HSBC and solarisBank.
Trade Republic Bank holds a German banking license and is supervised by the Bundesbank as well as the Federal Financial Supervisory Authority (BaFin). The Berlin-based company was founded in 2015 by Christian Hecker, Thomas Pischke and Marco Cancellieri. In January 2019, Trade Republic was the first German broker to launch mobile-only and permanently commission-free stock trading. Trade Republic's investors include venture capital investors Creandum and Project A as well as sino AG.
Creandum is a leading European venture capital firm that believes any industry can be disrupted by the right entrepreneur. The Creandum funds have over EUR660 million under management and are advised by the Creandum Advisory companies with offices in Stockholm, Berlin and San Francisco.
Over the past 15 years the Creandum funds have invested in more than 75 companies including Spotify, iZettle, depop, and Klarna.
ABOUT PROJECT A
Project A is the operational VC that provides its ventures with capital, an extensive network and exclusive access to a wide range of operational expertise. The Berlin-based investor makes use of the EUR260m in assets under its management to back early-stage companies in the digital technology space. With its unique organizational structure featuring 100 operational experts, Project A offers its portfolio companies hands-on support in the areas of Software Engineering, Marketing, Design, Communications, Business Intelligence, Sales and Recruiting.
The portfolio includes companies such as Catawiki, WorldRemit, uberall, Homeday, Spryker, KRY, and Wonderbly. You can find more information at www.project-a.com and on the blog insights.project-a.com.
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