German FinTech NaroIQ Raises $6.5M Seed

German FinTech NaroIQ Raises $6.5M Seed Round to Establish European  Fund Infrastructure

‍

● Existing investors such as General Catalyst increase their investment, while Berlin-based VCs Magnetic and Redstone participate as new investors.  

●  The fresh capital will enable the further expansion of NaroIQ’s digital infrastructure for funds and ETFs, as well as the launch of the first products.

●  More sovereignty in the fund market: NaroIQ provides a “Made in Europe” answer to the US-dominated ETF market.

‍

Cologne, June 18th, 2025 – Cologne-based FinTech NaroIQ has raised more than $6.5 million (€5.85 million) in a seed financing round. The round is led by VC investor Magnetic, which specialises in critical infrastructure, followed by Redstone, a well-known European FinTech VC. Existing venture investors, including renowned US-based VC General Catalyst, have increased their stakes. NaroIQ will utilise the funding to further expand its digital fund infrastructure. The platform enables companies to launch and manage ETFs and funds with enhanced digital capabilities and greater cost-efficiency. The FinTech is building an independent European alternative to the US-dominated ETF landscape and enables smaller fund providers to enter the ETF market.

‍

NaroIQ: Driving competition in the ETF and fund market

‍

While the European ETF and fund market sees record inflows, outdated manual processes create barriers to innovation and broader market access, which concentrates assets among a handful of providers. NaroIQ’s solution for funds and ETFs addresses this challenge directly: The digital infrastructure platform reduces the costs of launching new and managing existing ETF and fund products. This ensures a faster time-to-market, more flexible product development and lower initial investments. NaroIQ thus opens up new access to the financial market, and existing providers such as banks, insurers and asset managers can work more efficiently and cost-effectively.

“We are witnessing a once-in-a-generation shift: ETFs will replace mutual funds in the retail market over the next decade, which means that margins will shrink significantly,” explains Chris Püllen, Co-Founder and CEO of NaroIQ. "Without a technological solution, only large fund providers with scale advantages will survive, creating an alarming concentration of power and wealth in the market. Our digital fund infrastructure levels the playing field, allowing smaller fund providers  and management companies to offer their own ETF and fund products profitably, while ensuring investors continue benefiting from diverse investment options and innovative ideas.”

‍

Europe’s untapped billion-dollar market opportunity

‍

According to EFAMA, the European UCITS and AIF market represents a total volume of €22.9 trillion in assets, but is based largely on outdated infrastructure. In a recent study by Ernst &Young, the degree of digitalisation of the asset servicing market for funds is rated at just 1.6 out of 5 points. This leads to considerable pressure on margins. The disconnect is stark: While asset managers' assets under management (AuM) have grown by 8.8% over the last five years, profits have only increased by 0.7%, a recent study by strategy consultancy zeb shows. As a result, the market is demanding flexible, digital solutions that reduce operational costs, which NaroIQ delivers with its modular technology.

David Rosskamp, Founding Partner at venture capital firm Magnetic, adds:

“With foundational financial services still reliant on manual, fragmented back-end processes, NaroIQ’s digital infrastructure is critical to unlocking efficiency, real-time transparency and cost savings. The team’s API-first, cloud-native platform addresses the sector’s most painful workflows and positions NaroIQ to drive the next wave of innovation in fund servicing across Europe and beyond.”

‍

Europe's ETF Paradox: The need for sovereign infrastructure

‍

NaroIQ solves a critical paradox and a structural weakness of the European ETF market: It is one of the largest ETF markets in the world, yet a few players dominate it, and it lacks a powerful European ETF administrator. The five largest ETF issuers account for 75 percent of the market share, while US-based issuers manage two out of three and administrate four out of five of all European ETFs. As geopolitical tensions continue to grow, financial sovereignty becomes increasingly strategic. Therefore, Europe's financial institutions are actively seeking local partners and looking to diversify their assets, creating a clear market opportunity. NaroIQ is closing this gap by building a more resilient and high-performance fund infrastructure, “Made in Europe”, also enabling smaller fund providers and management companies to enter the ETF market.

‍

The fresh capital will be invested specifically in technical development and regulatory licensing. NaroIQ plans to launch its first partner integrations as a key milestone this year.

‍

About NaroIQ

‍

NaroIQ uses a digital infrastructure to enable companies to launch and manage their own ETFs and funds with lower costs and effort. With its modular technology platform, NaroIQ democratises access to the ETF and fund market for fund providers and management companies and reduces costs, which should ultimately benefit investors. The company was founded by Chris Püllen and Nils Krauthausen in 2022 and is backed by leading European VCs and FinTech experts. More information at https://www.naroiq.com/