NewAlpha has made the sixth investment from its dedicated fintech fund, investing in Austrian start-up in wikifolio.com to accelerate the international development of its online trading platform.
wikifolio.com is a social trading platform aimed at democratising financial investments.
The company offers an online financial platform allowing both investment professionals and private individuals to conduct their investment strategies on virtual portfolios, called wikifolios.
Each portfolio constitutes the basis for an exchange traded financial product (wikifolio certificate) with an individual security number (ISIN) listed on the Stuttgart Stock Exchange (EUWAX). Through these wikifolio certificates, investors automatically “follow” trades in the respective wikifolios and participate in their performance. In addition, all trades and comments made by the social traders can be viewed in real time on the online platform.
wikifolio.com started in Germany in 2012. There are now more than 17.500 wikifolios, over 6.300 listed wikifolio certificates and a EUR12 billion worth of traded volume. Based on customer orders, wikifolio’s certificates are among the most frequently traded products on EUWAX in “the index and participation certificates” segment. In 2017 wikifolio.com already recorded a 40 per cent increase in assets under management.
NewAlpha is the leading investor in this fund raising operation, which also involves existing investors of wikifolio.com, who have confirmed their interest in continuing to fuel its development.
Andreas Kern, founder and CEO of wikifolio.com,says: “NewAlpha Asset Management brings international expertise and experience to us – in terms of the French market in general but also regarding joint global growth initiatives.”
“Since its launch, wikifolio.com has delivered an outstanding performance. We have been particularly impressed by its innovative business model that will revolutionise the investment management industry by opening up the routes adapted to the next generation of individual investors,” says Jonathan Cohen Sabban, investment director at NewAlpha.
“This is the first international investment of our Venture Capital fund dedicated to fintech start-ups and I believe it will pave the way for the fund’s international expansion. We are eager to deal with the best Fintech companies in Europe and we are glad to start with wikifolio.com, as asset management is our core expertise,” adds Lior Derhy, managing director head of private equity at NewAlpha.
NewAlpha was the most active fintech VC investor in France in 2016.
Invested in by institutional investors, including the Credit Mutuel Nord Europe, the fund managed by NewAlpha aims to build and promote a diverse portfolio of investments in innovative Fintech and Insurtech companies. It also aims to provide active monitoring of changes in financial services (innovative initiatives, new uses) and of technological changes affecting the banking, insurance and asset management industries.
