VC-backed N26 raises $160m

Existing investors also participated in the financing for the Berlin-based bank, which had previously attracted investment from VC firms including Earlybird Venture Capital, Horizons Ventures and Valar Ventures.

The fresh capital will be used to support N26's growth through international expansion. It plans to launch in the US and the UK in 2018.

N26 will also invest in automating more of its processes using artificial intelligence technologies. The company has 850,000 customers and has processed €9bn in transaction volumes to date with a staff of 380.

However, N26 does plan to hire more people, as it aims to reach five million customers by 2020, and expects transaction volumes of €13bn in 2018.

Previous funding
N26 received a €25,000 seed investment in May 2013. Earlybird led the first institutional funding round in June 2014, investing $2m alongside Redalpine Venture Partners.

Both Earlybird and Redalpine returned alongside Valar and Armada Investments in April 2015 to provide N26 with a €10m series-A.

Battery Ventures and Horizons joined at the series-C round, investing alongside all previous investors in a $40m financing in June 2016.

Company
N26 was founded by Valentin Stalf and Maximilian Tayenthal in 2013, and the product was launched in 2015. It offers retail banking services via a digital platform, operating on a lower cost base than traditional banks due to the lack of physical infrastructure. The company received a full banking licence from the European Central Bank in July 2016. It has 850,000 customers in 17 European countries and employs 380 people.

People
N26 – Valentin Stalf (CEO).

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