Ride Capital, a Berlin-based digital private bank, has filed for insolvency despite significant investments from high-profile figures like footballer Mario Götze. The news has sent shockwaves through Germany’s start-up scene.
Ride Capital backed by well-known investors
The insolvency proceedings for Ride GmbH, represented by its founders Christine Kiefer, Felix Schulte, and Samed Yilmaz, were initiated last week at the Charlottenburg District Court. Attorney Dr. Björn Gehde has been appointed as the provisional insolvency administrator.
Founded in 2020, Ride Capital positioned itself as a virtual asset management platform and quickly garnered financial support from prominent investors. In 2022, entrepreneurs such as Lea-Sophie Cramer (founder of Amorelie), Verena Pausder (chairwoman of the Startup Association), and Mario Götze invested €3 million into the fintech. Other high-profile backers included talent scout Marcus Wolter and tech expert Philipp Klöckner. Altogether, Ride Capital raised €8 million with the aim of transforming into a digital private bank catering to clients with liquid assets ranging from €500,000 to €3 million.
Over 700 million euros under management
Ride Capital’s website highlights its ability to simplify the creation of wealth-managing limited companies (GmbHs). According to the company, it has founded over 1,500 GmbHs and currently manages more than €700 million in assets. Additionally, more than 265 tax advisory firms reportedly use its securities accounting services. The company’s mission was to make wealth-managing GmbHs accessible to all, not just the wealthy, and to streamline the tax optimization process.
However, despite its rapid growth and high-profile backing, the start-up has now joined a growing list of young tech companies in Germany that have filed for insolvency. The exact reasons for the financial difficulties remain unclear. A spokesperson for Ride Capital confirmed the crisis but refrained from providing further details, citing a “thorough analysis of the company’s financial situation.” The spokesperson added that the team continues to work diligently on business operations.
Christine Kiefer’s fintech experience
Co-founder Christine Kiefer is well-known in the financial technology sector, having worked on several fintech ventures in the past. She also served as a member of the fintech advisory board for the previous German government and was named “Entrepreneur of the Year” in 2022 by the fintech platform Payment & Banking. Despite her experience, the future of Ride Capital remains uncertain as the company navigates the insolvency process.
