Priya Patel
TLDR:
- Naro, a German fintech, secures €2.7 million pre-seed round to enable companies to build ETFs.
- The funding will strengthen fund infrastructure, establish partnerships, obtain regulatory licenses, and refine technology frameworks.
Article Summary:
Naro, a Cologne-based fintech, has successfully secured a pre-seed funding round of €2.7 million led by European investors La Famiglia (now part of General Catalyst) and Discovery Ventures. The funding will allow Naro to enhance its fund infrastructure by forming strategic partnerships, acquiring regulatory licenses, and improving its technological frameworks. The company aims to establish a comprehensive European fund ecosystem that empowers companies to create custom-made, technology-driven funds without the burden of operational or regulatory overhead.
Naro’s platform enables companies to develop their own investment products such as ETFs and funds, redistributing earnings among all involved parties and providing distributing companies with a larger share of the market. By offering a range of products from ETFs to index funds, Naro addresses the imbalance in the current financial system by tailoring investment solutions to individual company needs. Founders Chris Püllen and Nils Krauthausen identified the need for a more company-oriented approach in the fund infrastructure market, particularly in light of the explosive growth of ETFs in Europe.
The investment in Naro was driven by the founders’ vision for a modern and fairer fund infrastructure, challenging the existing transaction-based monetization models. Naro’s potential customer base includes brokers, financial platforms, insurers, and banks, who stand to benefit from a new revenue stream or maximizing their capital potential. With a focus on democratizing wealth-building solutions, Naro aims to distribute more fund earnings to Main Street, offering companies and individuals better investment options tailored to their specific needs.
