Berlin-based FinTech Number26 announced a €10 million Series A round led by Peter Thiel’s VC Valar Ventures. Swizz entrepreneur Daniel S. Aegerter as well as existing investors Earlybird and Redalpine also joined the round.
Having launched in January 2015 in Germany and Austria, the Berlin-based FinTech startup Number26 offers a modern checking account for free that comes with a MasterCard (that works in real time like a debit card). The startup works in cooperation with Wirecard Bank.
Different from most banking apps and their websites, Number26 stands out for its simplicity and great design. The startup also offers free money withdrawal from almost all ATMs worldwide and has so far attracted 8,500 users, with 15,000 prospective customers still on its waiting list, the company states.
CEO and co-founder Valentin Staif explained towards VentureVillage that the reason for leaving people on a waiting list is that the startup wants to ensure the best possible user experience for all customers. “[…] We scale step by step. If 10,000 users were to register the first day, customer support and other units could face problems. Especially in banking, customer support is key and therefore very important to us.”
The new investment will be used to grant more customers access to Number26 accounts.
The €10 million Series A round is led by Peter Thiel’s VC Valar Ventures, which has also invested in TransferWise earlier this year. Swizz entrepreneur Daniel S. Aegerter as well as existing investors Earlybird and Redalpine also joined the round.
Previous investments include financing by the Axel Springer Plug & Play Accelerator in 2013, when the startup received €25,000. In June 2014, Number26 announced a $2 million Seed round, where Axel Springer, Earlybird and Redalpine Ventures invested.
Including the fresh capital, the overall investment is about $12.7 million.
Looking overseas, it is clear that this market has a lot of potential. US competitor Moven raised a $8 million Series A in July 2014 (making it an overall investment of $12.4 million). Another competitor, simple, was acquired by BBVA in February 2014 for $117 million.
Image: Number26, Number26 foudner Maximilian Tayental (left) and Valentin Stalf