Scalable Capital

Scalable Capital is a leading European investment platform founded in 2014 by Erik Podzuweit, Florian Prucker, Adam French, and Prof. Dr. Stefan Mittnik. With headquarters in Munich, Berlin, and London, the platform aims to provide accessible and affordable investment opportunities through innovative technology and low costs. Its key offerings include Scalable Wealth, a digital asset management service, and Scalable Broker, which allows independent trading of stocks, ETFs, funds, cryptocurrencies, and derivatives via a user-friendly mobile app.

Scalable Wealth has been available since 2016, offering a simple, cost-effective solution for individuals seeking to accumulate or grow wealth. It provides customisable savings options and a range of investment strategies that operate automatically, allowing users to manage their investments with ease.

With Scalable Broker, users can begin trading with a monthly savings amount as low as one euro, promoting financial independence and self-determined investment decisions. The platform supports over one million clients with assets under management exceeding €20 billion.

Scalable Capital prioritises security and operates under the regulation of the German Federal Financial Supervisory Authority (BaFin). Client assets are held securely by a German custodian bank, with cash deposits protected by statutory deposit insurance and the Deposit Protection Fund of Private Banks. In the event of insolvency, securities remain protected outside the company’s insolvency estate.

The platform is designed with high-security standards, including two-factor authentication, encrypted data storage, and ISO27001 certification for information security. Scalable Capital emphasises transparency regarding risks, cautioning investors that returns are not guaranteed, and past performance is not a reliable predictor of future results.

Scalable Capital also offers PRIME+ with 2.6% p.a. interest on cash accounts at Baader Bank AG for amounts up to €100,000.

Scalable Capital was founded in 2014 by Erik Podzuweit, Florian Prucker, Adam French, and Prof. Dr. Stefan Mittnik, to democratise access to wealth management and financial markets through technology. Headquartered in Munich, with offices in Berlin and London, the company sought to offer a more accessible and cost-effective way for individuals to invest their money.

The company launched its first product, Scalable Wealth, in early 2016, marking the beginning of its operations. Scalable Wealth is a digital asset management service designed to simplify the investment process for individuals who may not have the expertise or time to manage their own portfolios. The platform uses advanced algorithms and risk management strategies to offer a range of investment strategies tailored to each user's risk tolerance and financial goals. By automating the investment process, Scalable Wealth allows users to accumulate or grow their wealth with minimal intervention.

Building on the success of Scalable Wealth, the company expanded its services with the introduction of Scalable Broker. Launched as a platform for self-directed investors, Scalable Broker provides users with the tools to trade stocks, ETFs, funds, cryptocurrencies, and derivatives independently. The broker service offers a mobile app with an intuitive interface, enabling users to manage their investments conveniently from anywhere. One of its distinctive features is the low entry point, with users able to begin saving or investing from as little as one euro per month.

Over the years, Scalable Capital gained significant traction in Europe, particularly in Germany, where it became one of the leading investment platforms. By 2023, the company had attracted over one million clients and was managing more than €20 billion in assets. Scalable Capital’s growth has been supported by partnerships with major institutions, including Siemens, ING, and Baader Bank.

The platform operates under the regulatory oversight of the German Federal Financial Supervisory Authority (BaFin) and the German Federal Bank (Deutsche Bundesbank). It emphasises client security, with robust safeguards such as deposit protection, two-factor authentication, and ISO27001-certified information security.

As of 2023, Scalable Capital continues to innovate and grow its product offerings, further expanding its role as a key player in the European investment landscape.

Scalable Capital's investment criteria are designed to cater to a wide range of investors, ensuring accessibility while maintaining sound investment principles. The platform uses a combination of automated technology and expert oversight to tailor investments to individual needs. Below are the key components of Scalable Capital’s investment criteria:

1. Risk Tolerance: Scalable Capital utilises a personalised risk assessment process to determine the right portfolio for each investor. By evaluating an investor's risk tolerance, financial goals, and investment horizon, the platform designs portfolios that align with individual risk preferences. Risk levels are monitored regularly, and adjustments are made automatically to keep portfolios within the selected risk parameters.
2. Diversification: The platform offers highly diversified portfolios, typically composed of global stocks, bonds, and other asset classes like commodities and real estate. By investing across different regions and sectors, Scalable Capital reduces the impact of market volatility on an investor’s portfolio, increasing the potential for long-term growth.
3. Passive Investment Strategies: Scalable Capital primarily follows a passive investment approach, meaning it invests in a broad array of exchange-traded funds (ETFs) that track various indices. This strategy aims to mirror the performance of the wider market, rather than relying on individual stock-picking, which can be more volatile and unpredictable.
4. Customisable Savings Plans: The platform allows investors to set up customised savings plans that align with their financial objectives. Investors can choose the frequency and amount of contributions, which can be as low as one euro per month. These savings plans offer a convenient way to build wealth over time.
5. Cost-Effectiveness: Scalable Capital’s fee structure is transparent and designed to be affordable. The platform offers low-cost access to global financial markets, with no hidden fees. This is particularly attractive for investors looking to minimise expenses while maximising returns.
6. Sustainability Options: For investors interested in sustainable investments, Scalable Capital provides options to invest in ESG (Environmental, Social, and Governance) funds. These funds focus on companies that meet high standards of sustainability, responsible governance, and social responsibility.

Scalable Capital operates based on a set of core values that guide its mission to make investing accessible, secure, and effective for a wide range of people. The company’s values shape its services, client relationships, and overall approach to the financial markets. Below are the key values that Scalable Capital upholds:

1. Accessibility: Scalable Capital believes that everyone should have the opportunity to shape their financial future. Its platform is designed to eliminate traditional barriers to entry, offering low-cost, easy-to-use tools that allow both novice and experienced investors to participate in the capital markets. Features like customisable savings plans with a minimum investment of just one euro per month highlight the company’s commitment to inclusivity.
2. Transparency: Transparency is central to Scalable Capital’s operations. The company offers clear and straightforward information about fees, risks, and portfolio management. Investors are always informed about where their money is being invested and how the portfolio is performing, allowing them to make well-informed decisions.
3. Security: Scalable Capital prioritises the security of its clients’ funds and personal information. Through high-level encryption, two-factor authentication, and ISO27001-certified information security measures, the platform ensures that investments and data are protected. Additionally, it complies with German and European regulatory standards, further guaranteeing the safety of assets.
4. Innovation: At the heart of Scalable Capital’s services is the use of cutting-edge technology. The platform continuously evolves to offer new, smarter ways to invest, from automated portfolio management to mobile trading. Scalable Capital leverages algorithms and data-driven insights to optimise investment strategies while reducing human bias.
5. Client-Centricity: Scalable Capital puts the needs of its clients first, offering tailored investment solutions based on individual risk profiles and financial goals. By providing both a digital asset management service and a broker platform, the company accommodates a variety of investment preferences, whether clients seek automated management or hands-on control.
6. Sustainability: Scalable Capital is committed to offering sustainable investment options through its ESG (Environmental, Social, and Governance) funds. These funds enable clients to align their investments with ethical and responsible business practices, ensuring that capital is allocated in a way that considers long-term societal and environmental impact.

Scalable Capital's mission is to democratise access to financial markets by providing everyone with the tools to shape their financial future. Through innovative technology, the platform offers low-cost, user-friendly investment solutions that enable individuals to invest with ease, regardless of their experience or capital size. By combining automated portfolio management with self-directed trading options, Scalable Capital empowers users to grow their wealth while maintaining control over their investments. Security, transparency, and inclusivity are at the core of its mission, ensuring that all investors have the opportunity to make informed, financially responsible decisions for long-term success.

Scalable Capital has raised a total of €320 million in equity through five funding rounds, supported by prominent investors who align with the company's mission of offering professional, cost-effective solutions for wealth creation, trading, and investment. The investors include:

1. BlackRock: A global leader in financial technology and asset management, BlackRock helps individuals build long-term savings and investment portfolios. As a key investor, BlackRock supports Scalable Capital’s mission to make investing more accessible and affordable.
2. Balderton Capital: A leading European venture firm with over two decades of experience, Balderton Capital invests across various sectors, including fintech and SaaS. Their support helps Scalable Capital grow its technology-driven investment platform.
3. Tencent: A global technology leader from China, Tencent specialises in communications, digital content, fintech, and cloud services. Tencent’s strategic investments foster the development of Scalable Capital's innovative ecosystem.
4. HV Capital: A prominent early-stage and growth investor in Europe, HV Capital has funded numerous successful technology companies. Its financial backing supports Scalable Capital’s growth through various phases of expansion.
5. Tengelmann Ventures: As one of Germany’s leading venture capital investors, Tengelmann Ventures focuses on early and later-stage investments in consumer internet, marketplaces, and technology sectors. Its support further strengthens Scalable Capital's development in these areas.