FinTech NaroIQ closes seed financing of 6.5 million US dollars

Cologne-based FinTech NaroIQ has raised over 6.5 million US dollars in its seed financing round. The round was led by Magnetic, a VC specializing in critical infrastructure, with participation from Redstone and existing investor General Catalyst, which is expanding its commitment.

NaroIQ intends to use the fresh capital to further develop its technological infrastructure and scale its platform for digital ETF and fund operations. The first ETF and fund products are set to go live this year.

Digital fund infrastructure "Made in Europe"

NaroIQ enables institutional providers, from banks and insurance companies to asset managers, to launch their own ETF and fund products quickly, cost-effectively and completely digitally. The start-up thus offers a European alternative to the previously US-dominated fund administration.

Without digitalization, the market will continue to concentrate on a few large providers. Our platform lowers barriers to entry and also secures the existence of smaller providers - this is not only economical, but also promotes democracy.

Chris Püllen, Co-Founder and CEO NaroIQ

Market with billions in potential, but lagging behind technologically

According to EFAMA, fund assets under management in the European UCITS and AIF market amount to around 22.9 trillion euros. At the same time, the level of digitalization is considered to be very low at 1.6 out of 5 points (EY).

Studies prove this: While asset managers' assets under management are increasing, profits are stagnating. The reason: high costs, analog processes, slow product development. NaroIQ aims to solve this bottleneck with modular API-first technology and a cloud-based operating system for funds.

Strategic importance for Europe

With a market share of over 75%, five providers dominate the European ETF market, the majority of which are based in the USA. For financial institutions and supervisory authorities, digital and geopolitical sovereignty is becoming a strategic goal.

NaroIQ not only offers efficiency gains, but also the basis for a self-determined European financial infrastructure. The team addresses precisely the weak points of an outdated system - with tech, speed and depth.

David Rosskamp, Partner at Magnetic

With the new capital, the team plans to onboard further partnerships, scale the platform and further expand it from a regulatory perspective. The launch of the first ETF products is expected in the second half of 2025.