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Berlin-Based Fintech Company Lemon Markets Raises 12 Million Euros

Lemon Markets secured €12 million to launch new products and expand in Europe. Having received a securities trading license from Bafin in January, the company offers digital infrastructure for investment services. The funding, in the form of a convertible loan, aims to attract more partners and grow their end-customer base, targeting European expansion next year.



Lemon Markets

Fresh capital for Lemon Markets: The Berlin fintech company receives twelve million euros from investors. The company announced this on Thursday morning. “We want to use the capital to launch new products and expand into other European countries,” said Lemon Markets founder Max Linden. The financing round also confirms the “good position” after receiving the license.

Lemon Markets received a license from the financial regulator Bafin for securities trading in January

Since then, the company has been able to offer the brokerage and custody of investment products using a so-called API interface. The fintech company, founded in 2020 , thus provides the digital infrastructure for other financial service providers, who in turn can offer end customers the opportunity to invest in stocks or ETFs (“Exchange Traded Funds”).

The capital from the financing round will be provided to Lemon Markets in the form of a convertible loan. “Young growth companies choose this convertible loan option primarily to be able to raise capital without having to immediately sell further shares to investors,” explains Volker Brühl, Managing Director of the Center for Financial Studies in Frankfurt (CFSF).

Lemon Markets wants to win more partner companies

With convertible loans, the valuation of the company is also postponed. “The investors reserve the right to convert the loan into shares when the term expires,” he said. Then a company valuation must take place. Alternatively, the investors could also just demand the loan amount plus interest back, said Brühl.

“The financing environment is still difficult for fintechs,” said Linden. The company most recently raised 15 million euros from investors in early 2022. According to the Lemon Markets founder, investors have become much more thorough and are taking much more time to really get to know the companies.

Lemon Markets has already won two partner companies

The Munich-based fintech company Beatvest, which offers a learning app for wealth creation, and the smartphone bank Tomorrow. The fintech company currently says it has “a few thousand” end customers on the platform. By the end of the year, Linden wants to win four more partner companies and have a total of up to a low five-figure number of end customers connected to the platform.

European expansion is to follow next year. “Our current and future partners are already positioned across Europe, so this will also be an issue for us next year,” said Linden.


(Featured image by Stephan Widua via Unsplash)

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First published in Handelsblatt. A third-party contributor translated and adapted the article from tthe original. In case of discrepancy, the original will prevail.

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Valerie Harrison is a mom of two who likes reporting about the world of finance. She learned about the value of investing at a young age upon taking over her family's textile business when she was just a teenager. Valerie's passion for writing can be traced back to working with an editorial team at her corporate job, where she spent significant time working on market analysis and stock market predictions. Her portfolio includes real estate funds, government bonds, and equities in emerging markets such as cannabis, artificial intelligence, and cryptocurrencies.