TLDR:
- Naro, a German fintech startup, has exited stealth mode with €2.7M pre-seed funding.
- Investors in the funding round include La Famiglia, Discovery Ventures, founders of European unicorns, and other VCs.
German fintech startup Naro has recently announced its emergence from stealth mode with €2.7 million in pre-seed funding from investors such as La Famiglia and Discovery Ventures. The company, founded by Chris Püllen and Nils Krauthausen, aims to address the inequities in today’s capital and financial systems. Naro offers companies the opportunity to build their investment products, providing them with a higher share of earnings in the ETF and fund market. This redistribution of earnings allows for lower fees and higher interest for end users.
With the pre-seed funding, Naro plans to develop a state-of-the-art tech infrastructure, obtain regulatory approvals, and forge strategic partnerships. The company’s revenue model involves earning part of the management fee that users pay for ETFs or funds, in addition to providing clients with a larger share of the market.
Naro’s product range includes ETFs, index funds, and money market funds, and is tailored to the specific needs of individual companies. Through a process called “Solutions Engineering,” Naro collaborates with companies to create customised investment strategies based on thematic, economic, and sustainable preferences. This enables clients to diversify their investment offerings and increase their profit share in existing fund concepts.
The company’s potential client base includes brokers, financial platforms, insurers, and (neo-)banks, who stand to benefit from Naro’s innovative revenue stream and capital potential maximisation. Investors like La Famiglia are optimistic about Naro’s disruptive potential in the fund infrastructure market, which has remained largely untouched by digitalisation.
Overall, Naro’s focus on providing fair and digital fund infrastructure, alongside its innovative revenue model and tailored investment products, positions it as a promising player in the fintech industry.
