The firm's robo-advisory platform is already live in Germany, and the startup - founded by a team of former Goldman Sach's employees - is working on a Q2 UK launch after securing approval from the Financial Conduct Authority in February.

The new investment round, led by existing investors Holtzbrink Ventures, Peng T. Ong’s Monk’s Hill Ventures, The German Startups Group and MPGI, takes the Scalable Capital's total funding to £8.8 million.

Adam French, co-founder and managing director, says: “This new capital will allows us to continue building our business in the UK, as well as supporting our operations in Germany and expanding selectively into new markets. Our goal is to become the leading digital investment manager in Europe.”

The firm's proprietary technology dynamically allocates each investor’s portfolio based on a quantitative measure of their risk appetite. Scalable Capital USP comes from the adoption of a fluid approach to the weighting of asset classes in its portfolios with the aim of enabling investors to capitalise on markets where risk is rewarded, and limit exposure to excess risk in more volatile conditions.

In the UK, the firm will compete directly with Nutmeg, Cardiff-based Wealthify and Italy's MoneyFarm, which announced its UK launch in February.

Christian Winter, CEO of Tengelmann Ventures, believes Scalable Capital has a distinct advantage over its competitors: “Like the robo-advisors that came before it, Scalable Capital offers a streamlined online onboarding & risk assessment process, but unlike its competition, the company uses sophisticated risk management technology to automate the investment process."