IOn principle, Julia Kruslin acted exactly right. In spring 2020, the business administration graduate realized how bad it was with her savings in her bank account. Interest on your money is now almost zero, plus the creeping loss of value due to rising inflation. “For me that was the wake-up call to finally deal with stocks and sensible investments,” says Kruslin in an interview with “Gründerszene”.
But what to invest in? The 27-year-old tried to make herself smart. She scoured YouTube channels, compared data on relevant finance portals and ordered the book “Sovereign Investing with Index Funds and ETFs” by Gerd Kommer, a 416-page pounder.
However, it lies unread in her suitcase to this day, as Kruslin says. “I was quickly put off by the size and otherwise ETFs are quite technically structured. As a complete beginner, I would have liked easier access to the subject. “
Fortunately, she met the financial expert Sophie Thurner (30) at the beginning of this year. During a surf vacation in Fuerteventura, they shared their experiences with investing. Thurner already knew her way around, she worked in investment banking at Hypovereinsbank and at the US Securities and Exchange Commission.
You could understand Kruslin’s experience immediately. In addition, many of her friends have turned to her with similar questions. “Since I was working in a start-up at the time and had been thinking about setting up a business myself, Julia and I decided to simply tackle the problem together,” says Thurner. The result is Beatvest – a learning app for finance with lessons of a maximum of three minutes in length.
The idea for their fintech came up during a surf vacation together: Beatvest founders Sophie Thurner (left) and Julia Kruslin
Those: Beatvest
In detail, the app works like this: The program first asks the user’s level of knowledge. Total newbie to investing? Do you already have know-how? Perhaps there is already a depot, but there are still gaps in knowledge? The user can then choose content from various modules in text, video and audio form.
For example, Beatvest explains to beginners what the differences are between ETFs and government bonds or gives tips on how to save money in the first place. Advanced learners learn how to invest in cryptocurrencies or how sustainable index funds work. After 30 minutes, users of the app would have a solid basic knowledge, promises the fintech. The individual lessons are concluded with a quiz.
The founders based their approach on successful language learning apps. “Setting up a Duolingo for finance was pretty much the first idea that came into our head,” explains Thurner. The US learning portal Masterclass, supported by top-class business professionals, was also a role model.
In contrast to the bosses of these two platforms – now valued at billions – Thurner and Kruslin still produce large parts of their content themselves. “With Beatvest, I would like to pass on my knowledge about investing. That’s why I like to sit in front of the camera myself, “says ex-finance supervisor Thurner.
“In addition, we want to show users who is behind our company.” Beatvest now also obtains some of the learning content from partners, such as the Institute for Sustainable Finance.
But it should not stop with financial education alone. Users will also be able to invest their money on the capital market directly via the app. Depending on the risk profile and interests, Beatvest then generates a personal portfolio of broadly diversified index funds.
For the transition, customers can save a sample deposit with fictitious money. If you feel comfortable with the admixture, you can later convert it into a real depot. Beatvest is cooperating with a partner bank for the idea. The founders do not want to name their names yet.
Kruslin and Thurner also keep a low profile on the business model. Just this much: Beatvest earns a fee when trading ETFs, and the learning content remains free for users in any case. And the founders emphasize something else: The fintech does not want to refinance itself through controversial “Payment for Order Flow” payments.
A clear pointer to neo brokers like Trade Republic, who earn more money the more trades they forward to trading exchanges. “That is one reason why such offers are completely unsuitable for beginners from our point of view – they encourage gambling,” says Thurner. Beatvest, on the other hand, primarily appeals to investors with a long investment horizon. This is one of the reasons why Beatvest initially only wanted to offer ETFs.
N26 founder joins
According to industry estimates, the market definitely offers enough potential. The world’s largest asset manager Blackrock expects nine million active ETF savings plans in Germany by 2025. This corresponds to an average annual growth rate of 35 percent compared to the end of December 2020. Germans have already parked savings of more than two billion euros in index funds.
Nevertheless, Beatvest will have to assert itself against serious competition. In addition to the billion dollar neo brokers, more and more smaller fintechs are pushing their way into the ETF business with special offers. The latest example is the account app from the Berlin provider Unitplus, which aims to motivate users to build up their wealth with an ETF payment card. Finmarie and Heyfina are also aimed specifically at women.
After all, Beatvest was able to win over the first well-known investors for his idea. According to “Gründerszene” information, N26 co-founder and co-CEO Max Tayenthal took a stake in the young fintech. Together with VC APX, initiated by Porsche and Axel Springer Verlag, to which WELT also belongs, Tayenthal invested a six-figure sum.
The Beatvest founders want to use the money to further develop their product and expand the team, especially on the developer side. The app is currently still in a closed test phase. The launch is planned for the middle of next year. 500 interested parties have so far registered for the waiting list.
“Everything on stocks” is the daily stock market shot from the WELT business editorial team. Every morning from 7 a.m. with the financial journalists from WELT. For stock market experts and newcomers. Subscribe to the podcast on Spotify, Apple Podcast, Amazon Music and Deezer. Or directly via RSS feed.
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