What was the catalyst for launching Upvest?
My career has always been at the crossroads of finance and technology. I began as a private equity manager investing in financial software companies and later started my own fintech ventures, including ShopCo (now with Klarna), Finleap, and, in 2018, Upvest.
Upvest was inspired by the reality that banks are not particularly well set-up to develop and manage high-performing software offerings or products. And, on the other side of the coin, fintechs often face challenges when it comes to securing established partnerships and handling the regulatory oversight they need to launch and scale. Upvest was founded to excel in both areas; providing an Investment API that gives our clients an unfair competitive advantage when it comes to offering investment solutions.
At Upvest, we're proud to partner with Europe's leading digital banks and brokers to transform the investment infrastructure landscape. Together, we're setting a new standard and working towards empowering 100 million investors across Europe, with the goal of creating wealth for everyone.
How has the business evolved since its launch?
Since we launched in 2022, we’ve massively scaled our client base and product. We are now operating in 20 markets across Europe and process over 2m orders on behalf of our clients each week - a rate we plan to triple by the end of the year. This includes some of the world’s most well-respected financial institutions including N26, bunq, Raisin, and Revolut. As we are seeing strong demand from traditional financial institutions, we expect to cross €100B in assets and trading volume based on contractual agreements in the next few years.
Tell us about the working culture at Upvest?
Ambitious, exceptionally smart, and kind. Our team operates on the principles of learning and growing, putting the team first, owning the outcome, and sharing knowledge. We enjoy celebrating our successes and do so annually by hosting our own festival, Upfest. Currently, we are concentrating on expanding our team in London, as we recently opened an office there.
How are you funded?
We are backed by some of the world’s leading VCs. In December, we announced our €100M Series C, led by Hedosophia and Sapphire Ventures. They join previous investors including BlackRock, Bessemer Venture Partners, Earlybird, HV Capital, Motive Ventures, and Notion Capital. We’re really proud to have the support of such brilliant VCs and backers as we scale.
What has been your biggest challenge so far and how have you overcome this?
The primary challenges have shifted over time. Initially, building a suitable product for the target market was crucial. Later, launching the product and ensuring customer satisfaction became paramount. Currently, scaling the business presents the main challenge. Throughout this journey, the consistent requirement has been to recruit, develop, and retain exceptional talent, transforming them into ‘Upvengers’.
How does Upvest answer an unmet need?
The UK has the highest retail investment adoption rate in Europe, at over 20%, but still lags behind the US rate of more than 60%. Most European banks outsource their investment infrastructure to outdated incumbent providers, hindering the growth of investment products. We are a new innovative solution that makes investment products smoother, more affordable, and scalable. By partnering with us, our clients can drive greater investment adoption and modernize their investment infrastructure. In the UK, for example, recent analysis estimates that 13 million adults in the UK are holding £430B in cash that could instead be used to invest. That’s millions of people missing out on building wealth simply because they don’t know where to start or don’t have access to the right tools.
What’s in store for the future?
Expanding our product offerings and entering new markets are our top priorities. One of our big focus areas right now is on UK expansion. Having secured FCA authorisation last year and opened our London office, we have now appointed a GM to lead efforts across the region. Despite having one of the most well established retail investment markets in Europe, it’s estimated that over 60% of UK adults don’t currently actively invest. That presents a huge opportunity for us. And we’re excited to partner with UK banks, fintechs, and wealth managers to bring investment solutions to their end users.
We’re also focusing on expanding our product offering. Next on the roadmap is the addition of further localized tax and pension wrappers (ISAs, SIPPs), and asset classes (derivatives, bonds, ELTIFs) to our offering. In the UK, a huge number of people currently invest in cash ISAs but don’t necessarily take advantage of stocks and shares ISAs. There is a major opportunity to help more people embrace investment through ISAs reform, as well as giving them the tools they need to take control of their pensions and long-term financial planning.
What one piece of advice would you give other founders or future founders?
Firstly, truly game-changing innovation takes time. During the early days of Upvest, we were focused on finding the right product in the right market - this involved many iterations and pivots. It’s vital that you continue pushing boundaries during what can be a long and sometimes tough period. It took us many years and a lot of sweat to finally find a product that had a big impact in the investment space and was fundable. If you truly believe in your idea, don’t give up.
Secondly, don’t believe textbooks or social media posts on how to run a business. Most of them are not applicable for high growth businesses or true innovators. Rather, surround yourself with brilliant people and define new standards yourself.
Thirdly, to remain valuable and engaged, stay actively involved in aspects of your business that you're passionate about. Even today, I still find great joy in delighting customers, recruiting exceptional talent, and securing funding.
And finally, a more personal question! What’s your daily routine and the rules you’re living by at the moment?
My working week is meticulously planned. Mondays are dedicated to strategy, Tuesdays to management and board meetings, Wednesdays to clients and partners, Thursdays to hiring and onboarding new team members, and Fridays to company communications and hiring. I intentionally leave 30% of my calendar open for high-priority tasks, which I tend to identify each Sunday for the week ahead. And I also block out a window each day for exercise, which plays an important role in my day-to-day wellbeing.
My mornings begin with quality time with my daughter and dog, and one evening a week - normally Wednesdays - is reserved for date night with my wife, and I try to spend weekends socialising with friends and family.
Martin Kassing is the CEO of Upvest.
