N26 Quietly Completed Second Closing of Series E Funding Round in 2021 — Here’s What We Know
- Juan Diego Parra Castillo
- Oct 21, 2021
- 3 min read
Updated: Jun 13
Originally published on our old Medium publication. This version was updated as part of our website relaunch in summer 2024.
A Closer Look at N26’s Under-the-Radar Funding Activity
In a revealing interview with the Börsen-Zeitung, Jan Kemper, CFO of Berlin-based neobank N26, disclosed a significant but previously underreported development: the second closing of their Series E funding round.
The interview, dated December 15, 2021, confirms that this closing took place concurrently with the first announcement — yet it remained unmentioned in public disclosures at the time.
What We Know So Far
The second closing involved bringing in additional institutional investors, including:
Canada Pension Plan Investment Board (CPPIB)
G Squared, a U.S.-based growth-stage venture capital firm
While the exact figure remains undisclosed, it is understood to be in the high 8-digit range (tens of millions of euros).
The first closing of the round, publicly announced in October 2021, raised $900 million at a $9 billion valuation, positioning N26 among the top challenger banks in Europe.
Why This Matters
The quiet second closing suggests strategic fundraising to strengthen N26’s position in the face of increasing competition and market consolidation. According to Kemper, this move could also be a response to regulatory scrutiny and shifting market dynamics, signaling a longer-term vision for sustainable growth and potential IPO ambitions.
This layered funding structure is not uncommon among high-growth fintechs, especially those navigating complex regulatory environments and aggressive international expansion plans.
Sources
Editor’s Note
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Funding
❓ What is a “second closing” in venture capital funding?
A second closing refers to an additional capital infusion into the same funding round after the initial closing. It often involves bringing in new investors or increasing participation from existing backers, without renegotiating the overall valuation.
❓ How much funding did N26 raise in its Series E round?
N26 initially announced a $900 million raise in October 2021 at a $9 billion valuation. However, a second closing was revealed later in December 2021, suggesting that total funds raised likely exceeded this amount, possibly into the high 8-digit euro range.
❓ Why didn’t N26 announce the second closing publicly?
The second closing was disclosed only in an interview with Börsen-Zeitung. It’s common for startups to delay or avoid announcing every tranche of funding publicly—especially during ongoing internal restructuring, consolidation plans, or sensitive strategic moves.
❓ Who are the investors involved in N26’s second closing?
Notable investors who joined in the second closing include the Canada Pension Plan Investment Board (CPPIB) and G Squared, a U.S.-based growth VC. These institutional players bring long-term capital and global scale experience.
❓ Why is this second closing significant for other fintech startups?
It signals a trend where neobanks secure follow-on funding quietly while preparing for long-term plays like IPOs or M&A defense. Founders should take note: large valuations often come in structured, multi-part funding rounds.
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About the Author:
Jörn “Joe” Menninger is the founder and host of Startuprad.io -- one of Europe’s top startup podcasts that scored as a global Top 20 Podcast in Entrepreneurship. He’s been featured in Forbes, Tech.eu, Geektime, CTech and more for his insights into startups, venture capital, and innovation. With over 15 years of experience in management consulting, digital strategy, and startup scouting, Joe works at the intersection of tech, entrepreneurship, and business transformation — helping founders, investors, and enterprises turn bold ideas into real-world impact.
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