NEXT GENERATION TRADING APP BUX COMPLETES €10.6 MILLION FUNDING ROUND
- BUX accepts Series C funding from leading venture capitalists, including Holtzbrinck Ventures and Velocity Capital.
- Opening the round to their 1.2 million users through equity crowdfunding platform Seedrs.
- Capital will fund aggressive European expansion as BUX seeks to become the one-stop-shop for all investment interests.
London, 23rd October 2017: BUX today announces that it has raised a €10.6 million Series C funding round in order to undertake ambitious product expansion.
The round was led by HV Holtzbrinck Ventures, one of Europe’s most successful venture capital firms. Velocity Capital also supported the round together with a number of influential angel investors, including former Booking.com CMO Arthur Kosten and Thierry Schaap, co-founder of online brokerage firm BinckBank. The fintech startup also opened the pre-registration of its inaugural crowdfunding campaign on Seedrs, giving over one million BUX users the opportunity to own shares in the business.
BUX is an international community-based trading app on a mission to enable anyone to explore the fascinating world of financial markets. The Company has already been rolled out across eight European countries, with over 200,000 users from the UK alone. Though headquartered in Amsterdam, BUX has partnered with established British-German broker ayondo Markets Ltd, who is licensed by the UK’s Financial Conduct Authority (FCA). Consequently, BUX users can trade with real money which is subject to the FCA regulations and their funds are covered by the UK’s Financial Services Compensation Scheme.
The simple yet engaging app has been developed in order to enable ‘BUXsters’ to be plugged into the markets all day. Primarily aimed at those with no experience with trading, 80% of BUXsters have had little to no experience with stock trading before joining the app. Therefore all new users are required to start trading with fake money in a risk free environment that mirrors the real markets. Only when they feel comfortable with the tools provided and the dynamics of the markets they move on to investing with real money. To encourage knowledge sharing users can also interact with like-minded traders on group forums or follow on of the many semi-professional channels. As a result, BUX has cultivated an intelligent, engaged community eager to learn more about the industry.
In addition to educating a new generation of investors, BUX places a huge emphasis on responsible trading as part of its core values. It is the first company in the trading world who have introduced a number of strict rules to ensure BUXsters don’t take irresponsible risks. These mitigations include:
- Diversification: BUXsters cannot invest the entire value of their account in one stock - they have to spread their risk
- Risk management: BUXsters cannot lose more than the amount invested
- Experience: All new BUXsters have to start with funBUX - a virtual currency
- Limited leverage: Does not offer ridiculously high leverages
- Transparency: BUX always clearly discloses transaction costs and they don’t make money off the spread as there are no bid and ask prices; everyone trades on one price
BUX intends to use the funds primarily to expand their product offering to be able to create a full suite of apps by 2020; these will range from short term trading, to long-term investing. Over the next year, BUX is aiming to launch a mid to long term investing app, in contrary to the current app which is focussed on the short term, as well as a crypto app due to substantial user interest.
Ultimately, by 2020 BUX aims to be the single destination for those who would like to do more with their money. Whether it is to explore the stock markets by short term trading or whether it’s to invest for the long term. For every investment need there will be a BUX solution.
Barbod Namini from HV Holtzbrinck Ventures, commented: "BUX is on a mission to revolutionise the investment industry; making it more accessible and appealing to beginner investors, whilst educating and safeguarding them from its potential pitfalls. HV Holtzbrinck Ventures is delighted to be backing BUX in their next phase of growth.”
Nick Bortot, CEO and founder, said: “Since the crisis rocked the world in 2008, the public, and particularly the millennial generation, have become more aware and interested in the direct consequences the financial world can have. Inseparable from politics and the world economy, the financial markets are the most influential instruments in the world, which makes exploring the financial markets extremely compelling. At BUX, we want to give everyone the opportunity to go out and discover that for themselves.”
“We are committed to constantly developing the user experience by expanding our range of products over the coming years, which this round will help us do. We are incredibly grateful from the support and interest we have received from the venture capital and angel communities, and eagerly anticipate to taking it to the crowd and existing BUXsters.”
For more information, visit: bux.seedrs.com
BUX is a tech company that is rocking the world of finance. Our mobile app makes stock trading easy, exciting and affordable for everyone. Founded in 2014, BUX now has 1,2 million users across 8 countries in Europe. By taking down the barriers to the financial markets and reinventing the trading experience, we're helping new generations of first-time investors to discover the exciting world of stocks.
Over the next years BUX will introduce a suite of apps, ranging from short term trading, to long-term investing. In 2018, BUX will start with a long term investment app, and due to substantial user interest, likely also a crypto app. Ultimately, by 2020 BUX aims to to be the single destination for those who would like to do more with their money. Whether it is to explore the stock markets by short term trading or whether it’s to invest for the long term. For every investment need there will be a BUX solution.
Seedrs allows all types of investors to invest as little or as much as they like in businesses they believe in and share in their success. And it allows ambitious businesses in all sectors to raise capital and build community through an efficient, online process.
Seedrs has funded over 540 deals to date and has had over £280 million invested on the platform. All investments made through Seedrs offer voting shares to investors and use professional-grade subscription agreements. This ensures that investors get the same level of protection that angel investors and venture capitalists enjoy.
Seedrs is backed by star fund manager Neil Woodford, Augmentum Capital (which is wholly-backed by RIT Capital, the investment firm run by Lord Rothschild), Faber Ventures and over 1,000 of its own customers. Seedrs is authorised and regulated by the UK Financial Conduct Authority. It was the first equity crowdfunding platform in the world to gain regulatory approval.
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WHAT IS BUX?
BUX is a trading app that makes playing the markets super easy and relatively safe for everybody. You can now experience the excitement of the stock exchange, even if you don’t have tons of trading experience or wads of cash to spend. BUX brings the fun into finance and makes stocks trading accessible for everyone.
WHY DID WE START BUX?
Most people think the world of finance is super-complicated and mind-numbingly boring. But at BUX we know that the financial markets are, in fact, the most important, the biggest, the most influential and the most exciting game in the world. The financial markets are inseparably connected to international business, politics and our world economy, which makes trading stocks actually something super-interesting to do. But go and try to get this point across over a few drinks at a party: before you’ll know it, you’re the one standing in the corner, all by yourself, sadly trying to maintain a posture by nibbling on a party snack. We feel this needs to change. Now, finally, technology enables us to create an app which opens the markets for everyone and makes trading stocks as easy as liking a post on Facebook. Whereas traditional finance is as boring and elitist as classical music, BUX rocks the world of finance and let’s everyone experience how exciting trading stocks actually is. Enjoy the party!
ABOUT THE COMPANY
Four Dutch entrepreneurs founded BUX: Egbert Pronk, Nick Bortot, Robbert Bos, and Joost van de Wijgerd. BUX’s CEO Nick Bortot co-founded BinckBank, with over 550 employees, the largest online discount broker in the Netherlands, listed on the Euronext stock exchange. From the headquarters in Amsterdam, BUX sets out to rock the global world of finance. The team currently consists of 35 employees that have rolled out BUX in the Netherlands, United Kingdom, Germany, Austria and Italy, with plans to expand globally. BUX has received the honour of being listed in the Fintech50 2015 – the annual list of Europe’s most promising fintech start-ups. Holtzbrinck Ventures, Orange Growth Capital, Velocity Capital and Initial Capital have funded BUX. BUX’s trading partner is Ayondo Markets Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) and is covered by the Financial Services Compensation Scheme (FSCS).