BlackFin Tech Weekly — November 4th

Gabrielle Thomas
Nov 1 · 3 min read

More than €48m+ were raised and the UK was largely represented with 6 deals out of 11. Spanish, German and Swedish startups also got funded last week, and the main Fintech category was as usual Banktech (6 deals). Wealth Management climbed up (3 deals), followed by Payment (1 deal) and Investment banking (1 deal).

Here we are with our fundings:

Made by BlackFin Tech with ❤

We’d like to deep dive a bit on the FreeTrade’s $15m Series A: We started to notice a few months ago the rise of 0-commission trade new offerings on the market. They target mainly Millenials, aiming at lowering barriers for entry to invest and democratizing banking.

It seems odd at first sight, doesn’t it? Here are some insights:

  • How can a service possibly offer a 0-commission trade, and make money out of it?
Watch-out: 0 commission doesn’t mean it’s free!

In reality, 0-commission doesn’t mean that the trade is free for the user. As Ramon Blanco wisely explains on this tweet, the client doesn’t pay any more a commission for trade execution, but his order is sold to financial intermediaries that sell it for a non-transparent and often high price than if the user were to pay a commission.

  • That being said, it’s totally turning down the market, as new offerings are popping up. Here are some interesting startups: FreeTrade, justTrade (German), or Trade Republic (German, raised 10m last summer) in Europe. There’s also the big Fintech unicorn Robinhood in the US and Revolut launching this type of services.
  • Our main question at BlackFin Tech remains about the positioning of these new players: can they attract high-net-worth individuals, and capture high-value trades and volumes, or will they “only” reach Millenials? Only the future will tell, but what’s certain is that our fellows VCs Creandum or Draper Esprit have seen some potential on this market!

Here are some details about FreeTrade’s Series A:

  • Founded in 2016 in the UK, FreeTrade aims at solving widening generational inequality regarding investment for Millenials. The startup wants to remove the current barriers of entry with its mobile-app service of 0-commission investing.
  • FreeTrade claims over 50,000 customers, and plans on expanding into Europe later this year.

What’s also noteworthy is the company raised as part of this round €1,16m in 77 seconds on Crowdcube, beating the record at this time on the platform, and engaging around 5,000 of its community members as investors. Crowd equity rounds are trendy these days, the Spanish Neobank Bnext also successfully raised this week more than £2m in a few days! Impressive! Congrats Guillermo Vicandi Nebreda & team!

Congrats to all the fintech entrepreneurs for their achievements: Oval, Troy, Dreams, RavenPack, Centrifuge, Trade Ledger, Koyo, StepLadder and TurinTech!

Congrats :D

And what else happened at BlackFin Tech this week?

// We recently launched of LinkedIn page, with among others posts about ‘What’s hot in hashtag #fintech this week?’. Don’t hesitate to check it out!

// Almost all the Blackfin Tech team went to London for a Fintech Drink we co-hosted with Dawn & Speedinvest, as a side event of NOAH. More than 100+ Entrepreneurs & VCs were here! Next week, let’s catch up in the Web Summit in Portugal & in the Fintech Business Days in Paris.

//Portfolio news: our portfolio companies recruit for 100+ positions: Don’t hesitate to check it out!

BlackFin Tech

Thoughts and ideas on all things fintech & insurtech. Managed by BlackFin Tech, a € 180m independent European Fintech VC and its team

Gabrielle Thomas

Written by

Exploring the future of financial services ⧁ VC @Blackfin_tech

BlackFin Tech

Thoughts and ideas on all things fintech & insurtech. Managed by BlackFin Tech, a € 180m independent European Fintech VC and its team

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