A German “robo-advisor” has boosted its funding pool in preparation for its UK launch.

Digital investment manager Scalable Capital has netted £5.6 million ($7.9 million) in its latest funding round, bringing total funding for the Munich-based start-up to £8.8 million. 

The funding round was led by the firm's existing investors Holtzbrink Ventures, Peng T. Ong’s Monk’s Hill Ventures, The German Startups Group and MPGI. Tengelmann Ventures and Leonteg have also signed up as investors. 

The firm, which was founded by a team of former Goldman Sach's employees, was granted approval from the UK's Financial Conduct Authority in February.

“This new capital will allow 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 Adam French, co-founder and managing director at Scalable. 

Already live in Germany, Scalable Capital’s technology allocates each investor’s portfolio based on a quantitative measure of their risk appetite. It uses forward-looking projections, based on recent market developments, to measure the risk level of exchange-traded fund products the client is invested in, and then reallocates their portfolio according to their risk category.

“Like the robo-advisors that came before it, Scalable Capital offers a streamlined online onboarding and risk assessment process, but unlike its competition, the company uses sophisticated risk management technology to automate the investment process,” said Christian Winter, chief executive of Tengelmann Ventures.

Scalable's competitors in the UK will include Nutmeg and Italy's MoneyFarm, which late last year announced plans for a London launch.