Shadowy figures, a gavel, and the N26 app amidst a corporate setting.
New reports reveal that convicted sex offender Jeffrey Epstein invested over $2.5 million in N26, the German-Austrian online bank, through Peter Thiel’s Valar Ventures.
According to confidential investor documents and emails released by the U.S. Department of Justice as part of the Epstein Files, Epstein’s investment occurred between 2015 and 2016 during N26’s Series A funding round. Valar Ventures, led by Peter Thiel, invested approximately $14.6 million in the same round. Epstein’s total investment in Valar Ventures funds reached $40 million.
N26 founders Maximilian Tayenthal and Valentin Stalf claim they were unaware of Epstein’s involvement, as Valar did not disclose it—a common practice for fund participations. Tayenthal stated they would have rejected the funds had they known the source.
Emails suggest that Andrew McCormack, a Valar Ventures partner, offered Epstein another investment opportunity in N26 in November 2018 for a major funding round, though it remains unclear whether Epstein accepted. By February 2019, Epstein’s investments in Valar funds had reportedly more than doubled to about $90 million.
Epstein was arrested in July 2019 and died in prison in August 2019. The revelation raises questions about due diligence in early-stage funding rounds and the extent to which venture capital firms vet their investors.
N26, once valued at up to $9 billion, saw its founders step down from management. The bank’s association with Epstein could impact its reputation and future funding opportunities.
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