$160 million for smartphone bank N26
PayPal founder Peter Thiel ’s venture capital fund Valar Ventures (Valar) has invested in smartphone bank N26 for the second time. The financing involves an amount in the double-digit millions. Valar was again advised by the international law firm Taylor Wessing. The first investment took place when N26 was launched in 2015. The current transaction, totaling 160 million euros, is the largest equity injection a local fintech has received to date.
With the funds gained, the mobile bank plans to conquer the U.S. and U.K. markets this year and further develop existing products. In addition to Valar, the insurance group Allianz and the Chinese Internet company Tencent, among others, have participated in the mega-investment.
Valar Ventures is a US-based venture capital firm whose founders include Peter Thiel. For the current investment in N26, Valar was comprehensively advised by Frankfurt-based Taylor Wessing partner Volker Baas, specifically in the area of compliance with the German Banking Act Compliance as well as other regulatory issues. Baas specializes in banking, banking regulatory and investment law and has many years of experience in advising domestic and foreign clients in the German legal environment.
N26 is one of the few German fintechs that has a banking license and can therefore fully compete with traditional credit institutions. N26’s customer base has grown to 850,000 since its founding in 2015. This is expected to grow to five million users by the end of 2020.
Legal advisors Valar Ventures: Taylor Wessing
Lead Partner Dr. Volker Baas (Partner, Banking & Finance, Frankfurt); Till Christopher Otto (Professional Support Lawyer, Banking & Finance, Frankfurt)