Cologne-based fintech startup NaroIQ, which builds a digital platform for launching and managing ETFs and funds, has secured $6.5 million in seed funding to enhance its platform.
- Founded in 2022 by Chris Püllen and Nils Krauthausen, NaroIQ delivers a modular digital platform that simplifies how asset managers launch and manage ETFs and funds.
- Their plug-and-play solution seamlessly integrates with existing systems, enabling companies to issue ETFs without the burden of costly manual processes.
- Amid growing margin pressures and a shift from mutual funds to ETFs, NaroIQ’s platform also features a sophisticated index engine, allowing clients to create custom indices and access ETF services like iNAV creation, helping them adapt to the changing market with greater speed and efficiency.
"We at NaroIQ help navigate this shift. We’ve built a technology stack that enables a more digital and cost-efficient fund administration as well as a low-effort integration into the ETF market for existing capital management companies," NaroIQ's team, commented on LinkedIn.
- By building a robust, high-performance “Made in Europe” fund infrastructure, NaroIQ seeks to break the stronghold of a few dominant US issuers, who control 75% of the European ETF market, and empower smaller providers to compete in the ETF space.
Details of the deal
- The investment was led by Magnetic Capital, a Berlin-based VC firm that supports tech companies in energy, financial technologies, security, and industrials.
- The round also received backing from Redstone, 14Peaks Capital, and Angel Invest, while existing investors like General Catalyst and Discovery Ventures increased their stakes.
- The startup will use the $6.5 million to enhance its digital fund administration platform, expand ETF integration capabilities, grow the team, and accelerate product development and market adoption.
