Press release by main incubator, 06.07.2021
Frankfurt am Main / Stockholm, July 6, 2021: The Swedish social trading platform for banks, StockRepublic, receives an investment of 2 million euros in a seed round. The funding round was led by local venture capital fund Uequity and Commerzbank’s early stage investor main incubator.
Founded in 2019 by Fabian Grapengiesser, Preben Rydin and Adam Svanberg, StockRepublic provides a full mobile first B2B platform including APIs and client applications for banks to connect or to use as a white-label solution. Connected to the customer’s existing account at his or her house bank, StockRepublic allows users to directly execute trades within their whitelabel solution. The available investment products are congruent with those financial products which the respective bank already offers to its clients.
Fabian Grapengiesser, CEO of StockRepublic states: “The social component of trading has been neglected far too long by banks and neo brokers as well. With StockRepublic, we aim at connecting customers and data in real-time to give them the best possible benchmark, guidance and inspiration for their investments. But not only customers can benefit from our solution. We’re also able to help banks meet their challenges in this area by optimizing engagement rates and attracting new customers.”
To provide the white-label solution, StockRepublic uses anonymised data such as shares, transactions and performances, which are used to calculate the users’ benchmarks and investment recommendations.
“Especially the new generation of retail investors appreciates the features StockRepublic’s app offers: They can see how climate-friendly their portfolios are, follow peers, post analyses and most importantly compare their own portfolio performance to the ones of other users. By doing this, they find the guidance needed for making investment decisions, which in the past was heavily influenced by the financial service industry. With our investment, we are happy to support this paradigm shift”, says Sebastian Scheib, investment manager at main incubator.
To accelerate this transition, StockRepublic and comdirect are planning to conduct a proof of concept. This proof of concept will give customers access to Stock Republic’s social trading features and will help to further develop the app.
Bjoern Andersen, Head of Brokerage at comdirect explains: “At comdirect, we believe that StockRepublic’s idea to connect retail trading with social features is an expression of the current zeitgeist among young traders and demonstrates that social trading is going mainstream. Together with StockRepublic, we plan to make retail trading more accessible, social and transparent.”
Besides such social features, StockRepublic gives users the opportunity to assess the climate impact of their portfolios. The company implemented several tools in its social trading platform from the start, in order to help and encourage users to make sustainable investment choices. “How to invest in a climate friendly way?” is one of the most important questions of our time, and StockRepublic tries to help users to explore green portfolios by giving them suggestions to reduce CO2 risk and encouraging them to follow climate friendly profiles.
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