Son of a combat medic, Richter attended the Gymnasium in his home town of Düsseldorf.
He became the leader of the German Progress Party (Deutsche Fortschrittspartei), after 1884 the German Freeminded Party (Deutsche Freisinnige Partei), after 1893 the Freeminded People's Party (Freisinnige Volkspartei), and was one of the leading critics of the policies of Otto von Bismarck.