Bux, a neobroker from the Netherlands, has recently raised $80M in funding to expand its platform. This news comes on the heels of the company’s successful foray into the European markets over the last few months.
The funding will enable Bux to accelerate the development of its neobroker platform and further expand its operations across Europe.
This article aims to provide an overview of the company and its plans for the future.
Overview of Bux
Bux is a company based in the Netherlands with subsidiaries in Germany, France and the UK, specializing in developing a neobroker app that helps users invest in financial assets with ease and transparency. Founded in 2014 by a team of experts in technology, FinTech, and trading, the company has quickly become one of Europe’s biggest alternative brokerages.
The platform has grown significantly since its launch and boasts over 1.5 million clients across seven European markets – Netherlands, Germany, France, UK Spain, Italy and Belgium. Bux offers fractional trades on stocks and a range of other financial products such as index funds and ETFs (Exchange Traded Funds). The company also provides its users access to financial advisors via its Buxtopia platform.
In November 2020 Bux announced an investment round worth $80M from well known investors such as Tencent Holdings Limited (the Chinese internet giant), Redstone Capital Partners of London and Feldschlösschen Ventures AG of Switzerland. This injection of funds will enable Bux to continue expanding its business across Europe. In addition, it is looking to launch new products such as cryptocurrency trading for more sophisticated investors and towards launching into new markets soon after.
Bux, a European Robinhood, raises $80M to expand its neobroker platform
Bux, a European neobroker platform, has announced a successful investment round of $80 million.
This investment round was led by venture capital firm Index Ventures and included existing investors – the London-based VC firm Velocity Capital and Amsterdam-based asset manager Robeco.
The company plans to use the funds to expand its services and attract new customers.
Details of the $80M investment
Bux, a popular European neobroker platform backed by the Dutch payments giant Adyen, has announced it has raised $80 million in a new funding round. The money comes from its existing investors like Draper Esprit and Orange Growth Capital and new ones such as Banco de Sabadell and Goldman Sachs.
The newly acquired capital will expand Bux’s activities in Europe and beyond. Bux confirmed that the funds will be used to launch new products, develop technology infrastructure and fuel future growth in the European fintech sector. It also plans to use part of its fund to acquire financial services companies across Europe.
Bux will also use the fresh capital to further develop its mobile-first investment platform tailored for users without prior knowledge or experience of trading or investing in stocks or currencies. The platform includes simple yet powerful features so users can customize their risk profile according to their needs and goals. Moreover, Bux provides straightforward educational resources and personal finance guidance tailored for novice traders or investors starting with smaller capital sums.
This round was led by Prosus Ventures, a technology-focused investment fund affiliated with South African tech giant, Prosus NV. Other investors involved include the Funds managed by BlackRock, the world’s largest asset manager, and Vulcan Capital.
Seed capital came from existing investors: Rocket Internet’s Global Founders Capital; DN Capital; Orange Growth Capital; Felix Capital and Target Global. These companies followed up on their initial investment with a Series A round in November 2019.
The Series B round of investing also saw participation from two family offices — Family Office of European serial entrepreneur Oliver Samwer and Horizen Ventures (the venture capital arm of American media mogul Len Blavatnik). It also received participation from industrial-tech venture builder EQT Ventures, Finnfund (a Finnish development finance company) and Emergence (an early stage venture capital firm based in Palo Alto).
The funding will be used for expanding operations across Europe, building out its team to make it a full-fledged neobrokerage platform. Bux is active in eight countries including Germany, France,Spain, Italy and the Netherlands and plans to add more European nations soon. With this funding it also intends to expand its product portfolio beyond trading stocks into several other asset classes such as ETFs & derivatives – futures & options contracts backed by cryptocurrencies & currency pairs.
Bux, a European neobroker and challenger to Robinhood, has recently announced the successful closing of an $80 million round of financing.
This series C round was led by Insight Ventures and will be used to expand the company’s platform and expand into new markets.
The company plans to use the newly acquired funds to accelerate growth, enhance and launch new products, invest in new technology, and increase its customer base.
Expansion into new markets
Bux has plans to expand its neobroker platform into new markets. The company recently announced an $80 million funding round to help fuel its expansion plans, focusing on Europe, Asia and other emerging markets.
In addition to increasing its offerings’ scope, Bux plans to launch a series of financial education materials for investors. This includes online tutorials for beginner traders to access educational resources, such as articles and videos about investing fundamentals and the trading interface. The company also aims to expand the range of assets available in each market, such as stocks, ETFs and cryptocurrencies.
Bux’s main objective is to make investing accessible for everyone by giving newbies a safe environment that offers plenty of resources and tools so they can become successful investors over time. The neobroker also hopes that expanding its platform worldwide will offer more opportunities for users to confidently invest in global markets.
New features and products
Bux, a neobroker platform offering stock and exchange-traded funds (ETFs), announced that it has raised $80 million to expand its services. In particular, the company will use the funds to add new products and features to its platform to increase user engagement and grow its client base.
Among the new products Bux will introduce include fractional investing options. This would allow users to purchase stocks with high share prices without paying the full amount upfront. Bux is also planning to introduce new research tools to better inform and help investors make strategic decisions. To bolster the overall user experience, Bux integrates a mobile app where customers can monitor and manage their investments anytime, anywhere.
The company is also investing into new tools designed for risk management and control allowing investors to better manage their portfolios while boosting their convenience and increasing compliance with regulations of multiple jurisdictions including Europe’s MiFID II directive. Finally, Bux is expanding its customer support channels with more localized support teams helping customers and prospects in different countries across Europe be able customize the platform according their needs.
As Bux aims to expand its neobroker platform across Europe, they face several regulatory challenges in different countries. With the European Securities and Markets Authority (ESMA) intervening in the online trading services of various European countries, Bux must comply with strict regulations to receive the permits it needs to operate in different countries.
Let’s look at some of the regulatory challenges they face.
Regulatory compliance requirements
When launching a neobroker platform like Bux, understanding and adhering to regulatory requirements surrounding authorization, supervision, and licensing are paramount. To ensure a compliant business model and remain in good standing with the regulators, the platform must continuously monitor for changes in its legal and regulatory environment.
In Europe, neobroker platforms such as Bux face multiple layers of legal compliance requirements from national governments and the European Financial Services Authority (EuFSA). Every country has its own framework for regulating and supervising financial services firms. Depending on which countries Bux plans to expand its operations, it must comply with different regulations; this may involve obtaining licenses with local authorities or registering with market surveillance authorities. In addition, on a European level (the EuFSA), firms must adhere to stringent EU regulations such as MiFID II that govern investment product offerings, trading activities (including trade reporting processes) and investor protection measures such as suitability tests.
Bux must also have detailed procedures around investor risk levels and portfolio monitoring; failing which EuFSA takes action against non-compliant firms leads to fines or other sanctions. Non-compliance with any aspect of regulation can negatively impact customer trust and result in costly penalties for the firm; therefore a neobroker platform like Bux needs to stay abreast of all applicable laws so that their operations remain compliant at all times.
Potential risks of non-compliance
Despite the potential for a strong return on investment, investing in neobrokers like Robinhood also carries inherent risks largely associated with compliance, regulation, and investor protection. These risks include not adhering to the guidelines set forth by relevant local governing bodies regarding proper financial disclosure and fair communication of company information to customers. In addition, non-compliance may lead to unfavorable developments such as legal proceedings or public damage of reputation, which can lead to substantial losses and capital outflows.
Additionally, non-compliance could lead to significant civil liability or even criminal action against senior management and various other types of sanctions or penalties that regulatory organizations can impose. Such sanctions or penalties include fines, cease and desist orders, private settlements with plaintiffs’ lawyers and suspension of trading privileges. All such outcomes are costly to the company directly (by way of fees) and indirectly (due to reputational brand damage). Therefore, companies like Bux (the European Robinhood) must adhere carefully to applicable laws and regulations to maintain their broad coverage area in Europe and reach their potential financial targets.
Bux, a European Robinhood, has raised $80M to expand its neobroker platform.
Bux’s platform aims to make trading and investing accessible to everyone on any budget. From their commission-free trades to educational materials, Bux makes investing and trading more accessible.
This funding round will allow them to expand their reach and bring their platform to more people worldwide.
Summary of Bux’s plans
Bux has recently announced a new $80 million funding round, led by Israeli venture capital firm Viola Fintech. This follows their previous two funding rounds, totaling $100 million. This brings Bux’s total value to over a billion dollars and positions it as one of the leading neobrokers in Europe offering commission free stock trading.
The company aims to use this latest round of funding to expand its operations into other European countries and offer banking services such as current accounts and high yield saving plans. They also plan to launch an investment platform called Bux Invest, enabling users to build their portfolios without needing long-term contracts or expensive account management fees.
Currently available only in the Netherlands and Germany; Bux plans on expanding into other European countries in 2021. With the continued focus on customer care and financial education, Bux is determined to create an ecosystem where everyone can access financial wealth without barriers.
tags = Bux, a European Robinhood, raises $80M, neobroker platform, exchange-traded funds (ETFs), bux etfs 80m prosus ventures tencentlundentechcrunch, Nick Bortot