BUX, one of the fastest growing trading apps in the industry, has announced a successful series C funding round. The company raised a total of €10.5 million from two venture capital firms: HV Holtzbrinck Ventures and Velocity Capital.
The company also committed to a crowdfunding round executed through the Seedrs portal. The opportunity is available to all 1.2 million users of the trading platform across eight countries in Europe.
Aside from German HV Holtzbrick Ventures, Velocity Capital, which already had marked success with the sale of Trade King to Ally Financial last year, was joined by angel investors. The former CMO of Booking.com, Arthur Kosten, and the co-founder of online brokerage BinckBank joined the venture capitalists in the effort.
The founder and CEO of BUX, Nick Bortot, shared with Finance Magnates some details 24 hours after the launch of the crowdfunding campaign. During the pre-registration period on Monday, over 4,000 people indicated that they want to pledge over €7 million in total.
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Long-Term Investments and Cryptocurrency Trading
With the launch of the next funding round, the company is aiming to introduce new apps to its loyal community. BUX is aiming to launch a long-term investment app next year and start the development of a cryptocurrency trading app due to the increased interest in the asset class.
The company has been focusing on providing its users with effective risk-management tools that teach clients to avoid over-leveraging and educate them about markets. The company has tailored its application towards millennials and investors that have little to no experience of trading on the financial markets.
Not only is the firm discouraging traders to use high leverage, it also teaches them to diversify their exposure across different positions, as well as enforcing a mandatory period of trading with a virtual currency.
Headquartered in Amsterdam, the company is partnering with FCA-regulated ayondo Markets for the execution of trades.
Commenting on the news, Nick Bortot said: “Since the crisis rocked the world in 2008, the public, and particularly the millennial generation, have become more aware and interested in the direct consequences the financial world can have.”
“We are committed to constantly developing the user experience by expanding our range of products over the coming years, which this round will help us do. We are incredibly grateful for the support and interest we have received from the venture capital and angel communities, and the crowd and existing BUXsters,” he added.