German neobroker Trade Republic has secured €250m through a Series B extension round, raising its valuation to €5bn.

The round was led by Canada-based pension fund Ontario Teachers and joined by the company’s existing investors.

Trade Republic co-founder Christian Hecker said that the proceed from the funding will enable the company to “invest strongly into technology.”

Hecker said: “With Ontario Teachers’, one of the leading global pension funds joins us on our mission to support people to participate in the long-term growth of the economy.

“We are amid a transformation of pension systems in Europe. The financing will help us to invest strongly into product innovation to empower millions of Europeans to put their money to work. Improving our valuation in the light of the current market environment is a true testament to our progress in the last twelve months and the large potential ahead.”

The extension follows Trade Republic’s Series C financing round last year, which was led by Sequoia with participation from TCV, Thrive and the previous investors Accel, Founders Fund, Creandum,  and Project A.

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The investment was made by Ontario Teachers’ High Conviction Equities team, which provides partner-centric capital across the equity capital structure with a focus on companies that are public or preparing to go public.

Ontario Teachers High Conviction Equities managing director and group global head Maggie Fanari said: “We are passionate about organisations that are using technology to tackle some of the world’s most pressing challenges.

Through their savings platform, Trade Republic democratises access to financial markets for millions of Europeans, providing the tools for wealth accumulation and empowering them to have brighter financial futures.”

In February, French fintech Finary bagged €8m in a Series A financing round to fund its strategic plan to build a modern private bank.