UK-based digital investment manager Scalable Capital raised £5.6m ($7.9m) on Wednesday in a series A round that included Tengelmann Ventures, retail group Tengelmann’s corporate venturing arm.
The round was co-led by Holtzbrink Ventures, Monk’s Hill Ventures, German Startups Group and MPGI, the investors that had previously supplied almost €4m ($4.5m) in funding for Scalable in January and April 2015 rounds.
Founded in late 2014, Scalable’s technology puts together investment portfolios for its users based on a quantitative measure of their risk appetite and recent market developments.
The company claims to be different from other robo-advisors in that it uses a fluid approach to weighting asset classes in the portfolio, meaning users can take advantage of markets where risk is rewarded while limiting exposure to risk during harder times.
Tengelmann Ventures CEO Christian Winter said: “We believe that Scalable Capital has the potential to become Europe’s leading digital investment manager.
“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.
“We are excited by the strong interest in its product in both the UK and Germany, and are looking forward to supporting the company as it continues to grow.”