Mercury vs Trade Republic

Mercury Hits $1B Annualized Revenue, CEO Reveals on Podcast

Mercury, a fintech startup, announced it has surpassed $1 billion in annualized revenue, marking approximately 50% year-over-year growth. The company now serves over 450,000 customers and is launching a new payroll service. CEO Immad Akhund disclosed these milestones during an interview on the Newcomer Podcast. Akhund also discussed broader industry topics, including the potential for AI agents to spend money autonomously, his view that the startup ecosystem is experiencing a bubble, and a cooldown in fintech startups following the pandemic-era boom. The announcement underscores Mercury's rapid scaling in the B2B financial technology space, which could have indirect implications for payment infrastructure and financial operations within the advertising and marketing technology sectors.

• Mercury reached $1 billion in annualized revenue, up 50% year over year.
• The company has over 450,000 customers.
• Mercury is launching a payroll service.

JPMorgan Blocks AI Agents; Mercury Embraces Them

JPMorgan Chase has decided to block outside AI agents, such as Meta's Muse, from accessing customer accounts and initiating money movements, as stated by CEO Jamie Dimon. This move aims to protect its cheap deposit base of $2.7 trillion, which pays only 0.01% on savings. However, the ban does not prevent AI agents from advising customers to switch banks. In contrast, fintech Mercury allows AI agents to connect via a hosted MCP server, and AI assistants now recommend Mercury over Chase by a five-to-one margin. The article analyzes the limitations of the ban, JPMorgan's potential motives, and the implications for the emerging agentic finance ecosystem.

• JPMorgan Chase blocks outside AI agents from customer accounts and money movement.
• CEO Jamie Dimon announced the ban, citing security and protection of deposits.
• Chase has $2.7 trillion in average deposits, with savings paying just 0.01%.

Introducing Mercury Books

Mercury has launched a new product called Mercury Books, a bookkeeping solution, and also introduced exclusive mutual fund products through Mercury Treasury.

Bafin Tightens Control Over Raisin

The German financial regulator Bafin has reclassified the Berlin-based fintech Raisin as a financial holding company, extending stricter oversight and higher capital requirements that previously applied only to its banking subsidiary. This move ends a prolonged resistance by Raisin's management, led by co-founder and CEO Tamaz Georgadze, against stronger regulatory oversight. The reclassification requires Georgadze to recalculate the business case for Raisin, which was last valued at approximately €3 billion. This change aligns Raisin with other major European fintechs like Trade Republic and Klarna, which have embraced banking status. The news was reported exclusively by manager-magazin.

• Bafin classifies Raisin as a financial holding company, extending stricter oversight beyond its banking subsidiary.
• The reclassification was made against the resistance of Raisin's management, including CEO Tamaz Georgadze.
• Raisin was last valued at approximately €3 billion.

Trade Republic Found Own Life Insurer for Retirement

Trade Republic, the Berlin-based neobroker, has established its own life insurer, Justinian Versicherungs AG, in Vaduz, Liechtenstein, after receiving a license from the local regulator FMA. The license covers traditional and unit-linked life insurance. This strategic move enables Trade Republic to offer a guaranteed version of the upcoming state-subsidized retirement savings account (Altersvorsorgedepot) in Germany, which will replace the Riester pension from 2027. The guaranteed version may incur a fee, unlike previously announced free variants. This expansion positions Trade Republic against traditional insurers like Allianz and Ergo, targeting security-conscious savers, while rival Scalable Capital avoids guarantees. Trade Republic reported €754 million in revenue for its 2024/25 fiscal year and a valuation of €12.5 billion, serving over 10 million customers.

• Trade Republic founded Justinian Versicherungs AG in Vaduz, Liechtenstein, and received a life insurance license from the FMA, covering traditional and unit-linked life insurance.
• The insurer enables Trade Republic to potentially offer a guaranteed version of the Altersvorsorgedepot, with returns of at least 80-100% of contributions, though it may carry a fee.
• The Altersvorsorgedepot is scheduled to launch in early 2027 as the successor to the Riester pension.

Project A's Heinemann: European VCs are suppliers to top US investors

In the 'Royal GS' podcast, Project A founding partner Florian Heinemann discussed European early-stage VC strategy. Project A, a Berlin-based early-stage investor, focuses on pre-seed and seed rounds, sometimes Series A, with a €325 million fund. Heinemann emphasized that European early-stage VCs act as 'suppliers' for top US investors, preparing startups for later US-led funding rounds. He advised founders to limit dilution to 20% per round and to maintain market-standard valuations. He cited Trade Republic as a success, noting Project A's ~9% stake cashed out during a secondary round at a €12 billion valuation. He criticized overvalued rounds by late-stage startups like ElevenLabs and Lovable, questioning the defensibility of such high valuations and noting that such rounds often facilitate secondaries for early investors.

• Project A manages a €325 million fund for early-stage investments.
• Florian Heinemann advises founders to limit dilution to max 20% per round.
• Project A cashed out part of its ~9% stake in Trade Republic during a secondary round at a €12 billion valuation.