Access to fair and long-term wealth-building solutions for individual users and companies alike should be the norm. For this to happen, investment products must be shaped after the use case and the companies that need these products – and not after existing one-fits-all approaches. Resolving this challenge, Berlin-headquartered fintech Naro helps companies will be able to create their own investment products such as Exchange-Traded Funds (ETFs) and funds without any operational or regulatory burden.
Emerges out of stealth
In a recent development, Naro just closed $3 million in a pre-seed funding round. European investors La Famiglia, which is a part of General Catalyst that invested in nuvo, Mistral AI, and EthonAI and Discovery Ventures led the round, with participation from founders of European unicorns Flix and Forto, other VCs Angel Invest and Robin Capital as well as operators with leadership experience at fintech companies like Liqid, N26, Plaid, and Trade Republic. With this round, the fintech emerged out of stealth mode.
This will enable Naro to strengthen its fund infrastructure by forging strategic partnerships, obtaining regulatory licenses, and refining technological frameworks. The ultimate goal is to establish an overarching European fund ecosystem that allows companies to create tailor-made, technology-driven funds to suit their external and internal needs best without carrying any operational or regulatory overhead.
Companies can build their ETFs
Founded by Chris Püllen and Nils Krauthausen in 2022, Naro addresses the imbalance in today’s capital and financial system. With this fintech, companies will be able to create their own investment products such as ETFs and funds without any operational or regulatory burden. As a result, Naro redistributes fund earnings among the parties involved and gives the distributing companies a larger share of the ETF and fund market.
It also enables companies to realise their own investment concepts so that they no longer have to rely on existing one-fits-all approaches. Naro’s product range extends from ETFs to index funds and money market funds.
Naro’s potential customer group, which spans brokers, financial platforms, insurers, and neobanks, will benefit from a new substantial revenue stream or safeguarding their assets and maximising their capital potential.
Specific use cases include the use of own investment products for internal deposit use and treasury management, the diversification of the investment offering via own ETFs or increasing of the profit share of existing fund concepts.
Judith Dada, Partner at La Famiglia (now part of General Catalyst), explains the investment in Naro: “The founders of Naro impressed us right from the start with their vision for a modern and fairer fund infrastructure. While many areas of the fintech market have undergone significant transformation in recent years, fund infrastructure has remained largely untouched by digitalisation. This market, which is worth 150 billion euros in the EU alone, is now ripe for disruption.”
“By building these products, we enable companies to offer and use more suitable wealth solutions, strengthening the overall adoption of investment products to help people and companies make more of their money. It is time to distribute more fund earnings to Main Street,” added Naro co-founder Chris Püllen.
