In the fast-paced world of startups and venture capital, the recent news about Creandum and Project A planning a secondary sale of Trade Republic shares has sparked significant interest across Europe and beyond. As someone deeply ingrained in the entrepreneurial ecosystem, I've observed how such events influence the dynamics of the startup landscape, especially for founders navigating the multifaceted challenges of scaling.
Introduction: Secondary Sales and Their Role in Startups
Secondaries, or the resale of equity shares in private companies, have become a common practice for venture capital investors seeking liquidity. While these transactions are often overshadowed by funding rounds or IPOs, they play a crucial role in recycling capital, giving early investors an opportunity to exit while allowing late-stage VCs to increase their stake in high-growth companies. The case of Trade Republic, a Berlin-based savings platform now aiming for a €12.5 billion valuation, perfectly exemplifies this.
As a serial entrepreneur who has worked across borders, I see this news from three perspectives, how it serves the sellers (Creandum and Project A), benefits the buyers (Founders Fund and Sequoia Capital), and impacts the startup ecosystem in Germany and Europe at large. Let’s dive into key insights from this announcement.
Deep Insights into Trade Republic’s Secondary Sale
A Snapshot of the Deal:
The secondary sale of Trade Republic shares, expected to push the company’s valuation to €12.5 billion, is a major milestone in Germany’s fintech ecosystem. Early-stage investors Creandum and Project A are preparing to offload a portion of their equity, enabling larger players like Founders Fund and Sequoia Capital to purchase shares and reaffirm their confidence in Trade Republic’s growth trajectory.
Why It Matters:
Trade Republic, founded in 2015, has grown its user base to over 4 million across Europe, offering a digital-first approach to saving and investment. It has transformed the public’s perception of wealth management tools, attracting both tech-savvy millennials and traditional investors. Its shift to profitability and robust growth has elevated it to the ranks of Europe’s leading fintech companies.
From the perspective of Creandum and Project A, liquidating shares through this secondary transaction creates an exit opportunity that rewards their early confidence in Trade Republic's potential. For Founders Fund and Sequoia, these secondaries are more than investments, they are votes of confidence in Trade Republic’s capacity to weather fluctuating macroeconomic conditions and regulatory hurdles.
And for the wider ecosystem, this move cements Berlin’s standing as a hub for startup innovation, creating optimism for other fintech players across Europe.
Statistics To Note
- Trade Republic’s growth: Exceeding €35 billion in assets under management by late 2025.
- Valuation jump: From €5 billion in 2021 to €12.5 billion in late 2025, a leap indicative of scale and maturity.
- Customer base: Over 4 million users, operating in 17 European countries.
- Secondary market scale: Globally, secondary transactions reached a staggering $160 billion in 2022, a testament to their growing role in private equity.
These numbers highlight why Trade Republic is poised to remain the crown jewel of German startups, beating common hurdles faced by fintechs in scaling profitably.
How Startup Founders Can Navigate Similar Opportunities
As tempting as it may be to focus exclusively on developing products, founders should pay attention to the secondary sales strategy as it relates to their equity holders. Here’s a guide on what every founder should consider during such milestones:
1. Understand How Secondary Sales Impact You
When early investors exit through secondaries, a new set of stakeholders steps in. Founders must actively ensure alignment with these new partners. Understanding their strategic agenda, vision for scaling, and growth expectations is vital.
2. Prioritize Existing Relationships
New buyers often bring fresh perspectives, but don't let long-term relationships with early investors decline overnight. Maintaining robust communication with both parties ensures the founder isn’t blindsided.
3. Focus on Metrics That Drive Buy-Ins
What brought Founders Fund and Sequoia to double down on Trade Republic? Profitability, scale, user retention, and innovation. Keeping focus on these metrics during negotiations will make your startup an attractive investment for secondary buyers.
4. Stay Market-Informed
Trade Republic’s success is heavily rooted in understanding investor attitudes amid fluctuating global market trends. Founders should continually assess their niche market and regulatory environment to adapt their strategy.
Mistakes to Avoid in Secondary Transactions
1. Assuming Secondary Sales Don’t Affect Founders
Secondary transactions influence not just the boardroom dynamics but also long-term strategy. A sudden change in investor composition could bring shifts in priorities.
2. Overestimating the Liquidity Benefit
While secondary sales offer liquidity to early investors, they don’t introduce growth capital into the company. Founders should clarify how the inflow of capital benefits business operations.
3. Ignoring Alignment Meetings
Successful secondaries often involve founders holding alignment meetings before buyers formally participate. Conversations around vision, direction, KPIs, and timeline mitigate future challenges.
4. Neglecting Timing During Long Valuation Cycles
Timing is everything when managing liquidity during a secondary sale. Pay attention to when your valuation spike will attract the most strategic investors, and be wary of external signals that could slow momentum, such as inflation or tightened VC markets.
The Bigger Picture: What European Founders Can Learn
Trade Republic’s rise reminds us why we must champion bold startup ecosystems across Europe. As Germany showcases global leadership in fintech innovation, founders must adopt lessons from this success. Whether it’s using secondaries to attract top-tier funds or scaling maturely in a saturated market, there’s a wealth of insights that we can tailor to our own ventures.
Be Transparent About Numbers
The consistent valuation hike for Trade Republic wasn’t accidental, it hinged on data-driven reports on its profits and reliability as a financial tool. Providing detailed metrics to investors builds confidence in your company's projection.
Retain Long-Term Team Motivation During Liquidity Cycles
Secondary deals can cause indirect demotivation within your startup team, so it’s critical to keep communication transparent to avoid rumors of instability.
Conclusion
The secondary sale of Trade Republic shares is not merely a liquidity transaction; it represents a domino effect in venture financing, market valuation, and strategic scaling for startups in Europe. Entrepreneurs who observe such milestones closely will gain a clear understanding of how secondary transactions can accelerate valuation, attract late-stage funders like Sequoia, and, most importantly, stimulate innovation across borders.
I encourage ambitious entrepreneurs to capitalize on these lessons. Whether you’re building the next fintech unicorn or innovating in a high-growth niche, understanding secondary sales dynamics might become just as critical as defining your revenue streams. For more fintech startup insights, don’t miss the Creandum portfolio insights on fintech.
Remember, building unicorns like Trade Republic isn’t a far-fetched dream, it’s achievable through strategy, resilience, and adaptability.
FAQ
1. What is the secondary sale of Trade Republic shares about?
Creandum and Project A are planning to offload Trade Republic shares in a secondary sale, which will push the company’s valuation to €12.5 billion. This deal represents a major milestone in Germany’s fintech ecosystem. Read the full article on Trade Republic
2. Who are the sellers involved in the Trade Republic secondary transaction?
The sellers are early-stage investors Creandum, a Swedish venture capital firm, and Project A, a Berlin-based operational VC. Learn more about Project A | Explore Creandum’s investment strategy
3. Who are the buyers participating in the Trade Republic secondary sale?
Founders Fund, led by Peter Thiel, and Sequoia Capital are the prominent buyers. They are increasing their stake in Trade Republic. Discover Founders Fund | Learn more about Sequoia Capital
4. Why is this transaction significant for Trade Republic?
This secondary sale elevates Trade Republic to a €12.5 billion valuation, solidifying its position as the highest-valued fintech in Germany. Explore the valuation dynamics
5. What milestones has Trade Republic achieved before this secondary sale?
Trade Republic surpasses over 4 million users across Europe and manages €35 billion in assets by late 2025. It also operates in 17 countries, offering savings and investment tools. Check out Trade Republic’s growth story
6. How does secondary sales benefit the startup ecosystem?
Secondary sales provide liquidity for early-stage investors and attract strategic capital for scaling startups. They play a crucial role in recycling investment within the ecosystem. Understand secondary markets for private equity
7. What lessons can startup founders learn from this secondary transaction?
Founders should ensure alignment with new stakeholders post-secondary sales, prioritize relationships with early investors, and focus on metrics such as profitability and user retention. Learn about backing Trade Republic
8. How are European fintech firms positioned in global markets due to Trade Republic’s success?
Trade Republic’s rise cements Berlin’s status as a fintech innovation hub and showcases persistent global investor confidence in European startups. Explore European fintech strategies
9. What challenges do founders face during secondary sales?
Some pitfalls include neglecting alignment among investors, overestimating liquidity benefits, and misunderstanding the timing of secondary sales for maximum valuation impact.
10. How do secondary transactions differ from traditional funding rounds?
Unlike funding rounds, secondary sales offer liquidity to earlier investors without injecting new growth capital into the company. They reflect investor confidence and long-term partnerships. See how Trade Republic innovates with private markets
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.