The firm claims to be the leading digital wealth manager of its kind in Continental Europe.

Anglo-German digital wealth manager Scalable Capital has received €25 million of capital in a third, aka Series C, funding round. Existing shareholders BlackRock, HV Holtzbrinck Ventures and Tengelmann Ventures put in the money, taking total funding increases to €66 million.

Scalable Capital, launched in 2016, now employs more than 100 people in Munich and London. The latest funding will be used primarily to expand the software engineering team so that it can accelerate business with retail clients and offer new white-label solutions for banks, insurers and asset managers. The organisation now boasts more than €1.5 billion ($1.67 billion) in assets under management and more than 50,000 client portfolios.

The rise of firms such as Scalable Capital is part of a trend of “robo-advisior” wealth platforms that use artificial intelligence and other tech tools to manage some old manual tasks, hence stripping out costs and making it easier to deliver services in a more regulated environment. Scalable Capital says that it is the “market leader for digital wealth management in Continental Europe”. 

The firm said that digital wealth management is “particularly popular” among high-earning professionals. Roughly two thirds of Scalable Capital's customers have a university degree in business, information technology or engineering. On average, the company manages €35,000 per customer. One third of the total assets under management are in portfolios with a balance of more than €100,000. In addition, almost every second customer of Scalable Capital has a monthly savings plan averaging €400.

BlackRock took a minority stake in the firm in 2017, another sign of how major asset managers are trying to tap into the digital platform trend.

Scalable Capital was founded in 2014 by Erik Podzuweit, Florian Prucker, Adam French (formerly at Goldman Sachs) and Professor Dr Stefan Mittnik (holder of the chair of Financial Econometrics and director of the Center for Quantitative Risk Analysis at the Ludwig Maximilian University in Munich).