Lightyear, a startup aiming to become the European equivalent of commission-free trading platform Robinhood, has garnered support from some of Estonia’s most prominent figures in the tech industry. Founded in 2021 by former Wise employees Martin Sokk and Mihkel Aamer, Lightyear has developed an app that allows users to invest in a wide range of assets, including over 5,000 stocks, exchange-traded funds, and money market funds.
The company recently announced a successful funding round, raising $23 million led by NordicNinja, a venture capital fund backed by Japanese investors. Notable Estonian entrepreneur Markus Villig, co-founder of ride-hailing unicorn Bolt, also participated in the funding. Despite not needing additional funds for operational purposes, Lightyear opted to raise capital due to the caliber of investors involved.
With operations in 25 countries, Lightyear is poised to expand into five new markets with the support of angel investors like Markus Villig. Villig emphasized the challenges of scaling a business across multiple countries in a heavily regulated sector but noted the ample opportunities for disruption in Europe’s less developed retail investing market.
Several Estonian angel investors, including Wise co-founder Taavet Hinrikus and Skype founding engineer Jaan Tallinn, supported Lightyear in the funding round. Estonia’s reputation as a leading tech hub in Europe, boasting the highest number of unicorns per capita on the continent, has attracted significant attention to startups like Lightyear.
The latest funding round values Lightyear at between $200 million and $300 million, a substantial increase from its previous valuation in 2022. In addition to the funding, Lightyear is introducing new artificial intelligence features, such as the “Why Did It Move” tool, allowing users to analyze stock price movements. The company is also planning to launch a crypto product geared towards long-term investors in the coming months.
Despite facing competition from established brokerage services and modern tech players like Robinhood and Revolut, Lightyear believes its focus on serving long-term investors sets it apart in the market. CEO Martin Sokk emphasized the company’s commitment to providing a differentiated product that caters to the needs of its users.
Overall, Lightyear’s innovative approach to online investing, coupled with its strategic partnerships and expansion plans, positions it as a key player in Europe’s fintech landscape. Stay tuned for more updates as Lightyear continues to disrupt the industry and drive innovation in the world of digital investing.
