TechFluence is anaward-winning researchandcorporatedevelopmentboutique at the intersection of startups, VC/PE firms and corporates.Founded2012inFrankfurt,wewerenamedtotheWallStreetJournal/FNFinTech40„40InnovatorsShapingtheFutureofFinance”in2014.
Q1-2018
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Contents
• EuropeanFinTechfundingmap:Q1-2018• Top10fundingroundsQ1-2018andtheirinvestors• FundingTrend-Monthly,byCategoryandbyCountry• Top3FundingRounds,byCategory• NotableM&Adeals
TheVCXOBriefingcombinesourdata-drivenanalysisofstartupinvestmentsandM&A,with
insightsfromVCstailoredtoEuropeanFSdecision-makers=“VCThinkingforCXOs”.
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Europe FinTech Funding Map Q1-2018: 1.6 bn*
• TheUKaccountedformorethan1/3thofthetotaldisclosedfunding.
• FranceandGermanytogetheraccountfor42%oftheinvestmentsinEurope.
• However,independentlyFranceissecondtoUK,followedbyGermany.
* Source: TechFluence estimates based on disclosed deals only– no liability for errors.
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Top 10 Funding Rounds & Investors: Q1-2018
$243M Lending EuropeanInvestmentFund,CNPAssurances
$208M DigitalBanking BBVA,Toscafund
$188M Lending BancoBNIEuropa,VarengoldBankAG
$135M DigitalBanking AllianzX,Tencent
$104M Lending Vitruvian,RunaCapital
$100M Investment ChinaMinshengFinancial,SBIGroup
$97M Others ListingonLSE–AIMMarket
$74M Others DraperEsprit
$69M DigitalBanking ArvatoFinancialSolutions,SBIGroup
$50M Investment Accel,AvivaVentures
AtomBank
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Disclaimer: TechFluence estimates based on disclosed deals only– no liability for errors
Funding Trend Q1-2018: Monthly, by Category
• Lendingaccountedformorethan1/3rdoftotalEuropeanFinTechinvestments,ledbyFrance’sLendix[$244M],UK’sMarketInvoice[$188M]andGermany’sSmava[$105M].
• LendixwasthehighestinvestmentofQ1acrossEurope.
• Bankingandothercategoryaccountedformorethanhalftheinvestments.
• UK’seToro[$100M],TruFin[$97M],FranceLedger[$74M]ledtheOthercategory
• UK’sAtom[$208M],Germany’sN26[$135]ledBanking
Source: TechFluence analysis based on disclosed deals only– no liability for errors.
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Funding Trend Q1-2018: Monthly, by Country
• TheUKaccountedfornearlyhalfofthetotalinvestmentsinEuropeanFinTechinQ1.
• Uk'sfundingboostedinMarchwithinvestmentstoAtom[$208M],MarketInvoice[$188M]andeToro[$100M]
• GermanyandFranceaccountedfor42%oftheinvestmentsinQ1.HighestinvestmentwerereceivedbyLendix[$243M],N26[$135M],andSmava[$105M]followedbyLedger[$74M]andSolarisBank[$70M].
Source: TechFluence analysis based on disclosed deals only– no liability for errors.
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Top 3 Funding Rounds, by Category
Source: TechFluence analysis based on disclosed deals only– no liability for errors.
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LendingInvestment Others
243M$
104M$
97.89M$
74.33M$
27.59M$
25M$
24.7M$
24.37M$49M$
188M$
AtomBank
208M$
69.7M$
135M$
20M$
DigitalBanking
100M$
30M$
About our sponsors
GoldSponsor
AboutHCL
HCLTechnologiesisa$7.1Bnglobaltechnologyservicescompanyoperatingoutof33countriesspecializingintransformationofITandengineeringservices.HCLprovidesanintegratedportfolioofservicesunderlinedbyitsMode1–2–3growthstrategy.Mode1encompassescoreservicesintheareasofApplications,Infrastructure,BPOandEngineering&R&Dservices.Mode2focusesonexperience–centricandoutcome–orientedservicessuchasDigitalandAnalyticsServices,cybersecurity,cloudandAI.Mode3isecosystem–driven,creatinginnovativeIP–partnershipstobuildproductsandplatformsbusiness,HCLfocusesoncreatingrealvalueforcustomersbytaking‘RelationshipsBeyondtheContract’.Formoreinfo,visitwww.hcltech.com
SilverSponsor
AboutAvertim
AvertimisaEuropeanManagementConsultinggroupdedicatedtobridgethegapbetweenStrategyandOperations.
WehelpourclientsinBanking&FinancialServicesfacecomplexchallenges(competition,regulations,customerneeds,digitaltransformation,fintechsintegration)bytranslatingtheirvisionintoconcreteandinnovativetransformationprojects.
Formoreinfo,visithttp://www.avertim.be
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Technologydefiningbusinesses;innovationdefiningstrategyInsights from Mani Nagasundaram, HCL Technologies
Mani Nagasundaram is a Senior Vice President and leads the Global Solutions Team for Financial Services in HCL. A veteran of over 14 years with HCL, he has held a number of positions over the years at HCL. In his current role, Mani is responsible for building and developing unique solutions for financial services clients across the globe. His focus has been on building propositions and capabilities for HCL around Legacy Modernization, Migration of Applications to Cloud, Modern Application Development, Application Enhancement and Digital Applications across the financial services portfolio. He is also responsible for driving key tech innovation and an agenda of client-focused partnerships across the division, through the creation of Co-Innovation Labs with key customers. Mani has a background in financial services, having worked with a large hedge fund prior to joining HCL. Based in London, he is an engineer and has an MBA from INSEAD in France.
TechnologydefiningBusinesses
Thiscenturyhasredefinedbusinesses,withdemographicchangesandtechnologybreakingbarriers;businesstraditionsandoperationsseemoutofdateandoutofsync.Theaverageshelf-lifeofaFortune500firmkeepsfalling,ascompaniesfailtodeliverlong-termvalue.Mostlargefinancialservicesinstitutionsareheavilyburdenedbyresource-intensiveoperationsandrigidityinprocessesandsystems.OftenCIOs’crucialdecisionsareaboutwheretoinvestandwhen–jugglingawiderangeofchoices,atrade-offoftendependentonexternalconditions.Ourapproachtothishasalwaysbeenbottom-up,recognizingthatplacingcustomersattheheartofanyconversationoftenshowstheway.Arecognitionthathashelpedussolvecrucialcustomerproblemsinthelast42years.
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LinkedIn https://www.linkedin.com/in/mani-nagasundaram-959536 | Twitter: @mani_ns
Customer-centricityshouldbeattheheartofeverybusinessmodel,asitimpactseverystrategicdirectionandeverydeploymentblueprint.CompanieslikeAmazonandUberareredefiningentireindustrieswiththeirmodelthatplacesconstantcustomer-focusedinnovationfrontandcenterofallbusinessdecisions.Refiningcustomerexperienceinthisrestlessdigitalageiscrucialandfinancialservicesarenodifferent.Thechangesmeanthatoncemightyentrybarriersintheindustryarenowcrumblingandnewcompetitorsaregainingafoothold–often,throughproductinnovationthatthrivesondynamiccustomerneedsofthedigital-natives.DevelopinganinnovationDNAiskeyhere-leveragingthedigitalparadigmasabackbonetothealreadyexistingtechnologyinfrastructure,whileconstantlyexperimentingandbuildingsolutionsthatsimplifythecustomer’sexperiencewiththebrand.Byreinventingthemselvesasexperience-architects,financialservicesenterprisesmustendeavourtobeservice-oriented,agileandlean,andfinally,ecosystem-driven.Thisleadstoaseamlessunion,withanunwaveringfocusonuserjourneysandtech-ledprocessorchestration–atrulymodernfinancialservicesenterprisebuiltforoutcomes.
InnovationdefiningStrategyDigitaltransformationisdifferentfromsimplemodernizationofinfrastructure–encompassingahostoffunctions,fromexpandingtheproductportfolioandbroadeningreachtochangingtheverycharacteroftheorganization.Suchacomprehensivestrategydemandstheperfectcombinationofleading-edgetechnology(artificialintelligence,predictiveanalytics,andmore),resources(humanandphysical),toolsandinfrastructure(suchasrobotics,sensorsandmore)andfinally,aclearlong-termvision.
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Technologydefiningbusinesses;innovationdefiningstrategyInsights from Mani Nagasundaram, HCL Technologies
(Contd.)
Thisdemandsthatbusinessprocesseshavetoundergoacompleteoverhaul,adoptingcurrentbestpractices,aswellassensingthepulseforfuturetrendsandopportunities.HCL’sapproachhasalwaysbeentoapproachthiscollaboratively–investinginco-creatingIPsinresearch-focusedInnovationLabsthathelpunshacklecriticalresourcesfrommonolithicrestraints,encouragingcollaborationandcommunicationandultimatelysparkinginnovativesolutionsforeverydaybusinessneeds.OurinvestmentsandpartnershipshavebeendesignedsothatwecoulddevelopPOCsandcondensetimetomarket,feedingfromandflourishinginan‘agile’ecosystem,responsivetothedisruptivetrendsintheindustrytoday.Thefinancialservicesindustrycannotaffordtobecomplacent,pickingupthechallengeistoconvertthistechnologicaldisruptionintoanopportunitythatpropelsthemforward,insteadbeingderailedbyunprecedentedcurrents.Theonlywayaheadiscontinuousre-invention-anessentialbusinessphilosophythatmustbeadoptedtoachieveoutcomesacrossallcornersofanincreasinglydiversifiedbusinesslandscape.Astheboundariesbetweenacompanyanditssurroundingecosystem-technology,vendorsandcustomers-becomeincreasinglyblurred,thereisaneedtoreimaginethe‘enterprise’perse,placingaunifiedvision,sharedbybothinternalandexternalstakeholders.
Attheheartofthisvisionlies‘customercentricity’.Thatistheonlywaythatfirmscanensurethattheyarein-syncwiththeneedsofachanginggeneration.Technologyandcustomercentricitygoeshandinhand–pillarsonwhichthemodernenterpriseisbuiltandsustained.ForHCL,thismeansarenewedcommitmenttoourengineeringstrengths,focusingondevelopingsolutionsandservicesthatcanbuildtheblockstowardsthelong-termstrategyofourclients.
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References/furtherreading:https://www.hcltech.com/blogs/21-ce-dna-why-innovation-key-tomorrow
Technologydefiningbusinesses;innovationdefiningstrategyInsights from Mani Nagasundaram, HCL Technologies
(Contd.)
TheVCXOBriefingwith…We talk to leading investors in European FinTech about market trends, what they are investing in and why, what to expect in the months ahead, and what’s on their bookshelves. Here are the latest insights from our conversations.
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Maxime Mandin, BlackFin Capital Partners
https://www.linkedin.com/in/maxime-mandin-836583b/
1.Tellusabitaboutyourselfandyourfocusareas,overallandwithinFinTechBlackFinisthelargestfintechfocusedindependentVCinvestorinEuropewitha150M€fund.Weinvest1-10M€inseriesA-Bfintech,insurtech,regtechsheadquarteredinEurope.Fundedbylotsofstrategicinvestors(banksandinsurancecariers)wehaveastrongbutnotexclusivefocusonB2Bbusinessmodels.BlackFinisanentrepreneurialinvestmentplavormsolelyfocusingonfinancialandinsuranceservicesinEurope.Blackfinismanaging600M€inthebuyoutspaceand150M€intheventurespace.BlackFinhasbeenfoundedandisownedbyex-foundersofFortuneo,oneofthefirstFrenchonlinebankin2000soldtoFrenchbankCreditMutuelArkea.
2.WhatopportuniResorchallengesareFinTechscreaRngforEuropeanFinancialInsRtuRons?Fintechsusuallystartbycreawngopportuniwesonnichemarketswhichareunderserved(likeSMBtoday).Theycanthenpartnerwithfinancialinswtuwonsenablingthemtoexpandtheirproductrangeortheirprofitability.Basicallyfintechsprovidethetechnologyandfinancialinswtuwonsthetrust(whichistoooxenundereswmated)andthecustomerbase.
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Maxime Mandin, BlackFin Capital Partners
https://www.linkedin.com/in/maxime-mandin-836583b/
3.Whatdoyouthinkabouttheincumbents’responsesofar,andwhatshouldtheybedoingbeVer?Wehaveseenasignificantchangeoverthelast5yearswithfinancialinswtuwonspartneringmoreandmorewithFintechs.Financialinswtuwonshaveclearlyrealisedtherelevance,reliabilityandpotenwalofFintechsandhavealsobecomemoreinnovawonfriendlymeanwhilewithbeyeradopwonofthirdpartyAPIorcloudsoluwonsforinstance.
4.Whichwaydoyouseethefinancialservicessectorgoing?Whowouldbethelikelywinners?Thefinancialsectorisreallyexciwngrightnowandarousesinterestfromplayerscomingfromotherindustries(telco,media,techgiants).Likeintelco(apple,Samsung,google)andinmedia(facebook,google)someyearsagoitismorethanlikelythattechgiantswillbethewinnersinthefinancialspaceaswell.
5.What’sonyourbookshelf/holidayreadinglist?AxerreadingbiographiesofSteveJobsandElonMuskIamlookingforwardtoreadingthebiographyofJeffBezos.
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(Contd.)
Aman Ghei, Finch Capital
https://www.linkedin.com/in/amanghei/1.Tellusabitaboutyourself.IamaninvestorwithFinchCapital(formerlyOrangeGrowthCapital).PreviouslyI'vespenttimeatFacebookwhereIwasinvolvedwiththeiraudiencenetworkanddistributionplatforms.AfterthatIranproductandagamestudioforoneofEurope'slargestmobilegamedevelopers.PreviouslyIwasatCreditSuisseandAccelPartners,whereIinvestedincompanieslikeSupercell,SpotifyandHailo
2.Whatisyourinvestmentfocus/thesis,andwhichFinTechfirmsareinyourportfolio?Wefocusoninvestingincompaniesinthefinancialtechnology vertical.We'vemade c.20 investments in the space ranging from security/infrastructure software solutions to AI/ML drivencustomer insights platforms.We also invest marketplaces that disrupt consumer financial pain points across any industry (real estate,automativeandfinancialservicesthemselves)
3.Whatmadeyou invest intoSquirroandwhy?Squirrohas the capabilities to connectdata silos/lakes inorganisationsanddrive truerevenueupliftbyprovidingactionableinsightstotheuser.WehadnotseenacompanydriveROIsoquicklyatlargeinstitutionslikeWellFargoaswellasatinsurancecompanieslikeHelvetia.
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4.Whatisyourtakeawayfrom2017andwhatcanweexpectnextyearin(European)FinTech?Takeawayfrom2017:Focusnowmoreonproductledinnovationvsdistributionled.CompaniesarespendingmoretimebuildingproductsthatwillenableB2B2CdistributionvsdirectB2Cdistribution.
Whatwecanexpect:Consolidationinthebankingspace,Blockchainwillcontinuetogainmomentumbutremainlargelypilot/innovationledvscommerciallyled.
5.Yourholidayreadinglist?Thankyouforbeinglate,ThomasF
Aman Ghei, Finch Capital
https://www.linkedin.com/in/amanghei/
(Contd.)
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Ankur Kamalia, DB1 Ventures
https://www.linkedin.com/in/kamalia/
Tell us a bit about yourself. I joined Deutsche Börse Group in November 2015 to take up the newly-created role as Head of Venture PortfolioManagement.PriortojoiningtheDeutscheBörseGroup,ImanagedaninvestmentportfolioforafamilyofficeandforahedgefundinAsia.PreviouslyIwasaManagingDirectoratUBS,responsibleforstrategyfortheGlobalInvestmentBankingdivisioninLondonandworkedinCorporateFinance/CapitalMarketsinNewYork,HongKongandSingapore. Avidreaderandtraveller. BornandraisedinIndiaforthefirsthalfofmylife,andlivedin7countriesoverthesecondhalf. IcompletedmyformaleducationwithanMBAfromtheKenan-FlaglerBusinessSchoolattheUniversityofNorthCarolinaChapelHill,buttheinformaleducationcontinuesonadailybasis. 2.Whatisyourinvestmentfocus/thesis,andwhichFinTechfirmsareinyourportfolio?DB1Ventures'visionistobeastrategicpartnerofchoiceforearly- to growth-stage companies which are core or adjacent to Deutsche Börse Group's strategy, generate attractive investment returns and addstrategicvaluetoitsgrowthplans. DB1VenturesconsidersitselfDeutscheBörseGroup's"eyesandears"intheventureecosystem.Itsfocusissetonareas of strategic interest to the Group to help the company drive innovation. DB1 Venturesmakes and actively manages long-term and strategicminorityinvestments.Theinvestmentfocusisontechnologiesandcapitalmarketapplicationsthatareandwillbereshapingthewayfinancialmarketsoperate.Ourstrategy isglobalandnot limitedtoaparticulargeographical region.Recent investments include figogmbh(bankingand fintechAPI),DigitalAssetHoldings (blockchain),Trifacta (Datawrangling technology),Trumid (electronic corporatebond trading),Regtek.Solutions (regulatory technology), IlluminateFinancials (early and seed stage capitalmarkets fintech fund) andDigital +Growthpartners (aB2BDACHcentric technology fund). WealsomanagepreviouslyinvestedFintechssuchasDigitalVegaandR5FXandotherminorityshareholdingsforDeutscheBörseGroup.
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3.WhatmadeyouinvestintoFigo?FigoisoneoftheleadingtechnologyinfrastructurescompaniesinGermanyinthefintechlandscape,ledbyastrongteam.FigoisemergingasoneoftheleadersintheAPIconnectivityandbankingasaservice(includingPSD2readiness)inEurope.AclosecollaborationwithfigocouldhelpDBGtoexpand itsreachasthe infrastructureproviderofchoicenotonlywithincapitalmarketsbutalso inbankingandfintech.Furthermoreweareleveragingtheirtechnologycapabilitiestojointlyengageinproductdevelopmentandotherpartnershipopportunities4.Whatisyourtakeawayfrom2017andwhatcanweexpectnextyearin(European)FinTech?RobustyearwithstrongfundinglevelsgloballyandinEurope. Corporateparticipation continues tobeon theuptick as strategic fintech investments areanexcellentway for incumbentorganisations toinnovativeandcollaboratewithbestinclasssolutionprovidersexternaltothem.Weexpectthistrendtocontinue.Whilefundinglevelswerealmostflatto2016,theyearwascharacterisedbylargercapitalraises.Valuationscontinuetoneedtobewatchedverycautiouslyespeciallyaswegointo2018.Certain themes such as blockchain and cryptoassets, data technology, and regulatory driven solutionswill continue to grab the headlines in capitalmarkets. ExpecttostartseeingsomecracksintheB2Cconsumerverticalandthecryptospacewillgothroughincreasedregulatoryscrutinyandsomelevelofmaturity. 5.Yourholidayreadinglist?IrvingStone-theAgonyandtheEcstasy, TheOutsiders:EightUnconventionalCEOsandTheirRadicallyRationalBlueprintforSuccess,AsIwalkedoutonemidsummermorning,Asyouthink,TheUpstarts
Ankur Kamalia, DB1 Ventures
https://www.linkedin.com/in/kamalia/
(Contd.)
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Maximilian Kempken, btov Partners
https://www.linkedin.com/in/maximiliankempken/1. Tell us a bit about yourself. InvestmentManager at btov Partners, the European venture capital firm,managing about EUR 330m ininstitutionalfunds,partnersfundsanddirectinvestmentsofprivateinvestors.
2.Whatisyourinvestmentfocus/thesis,andwhichFinTechfirmsareinyourportfolio?InvestmentFocus:Wehavetwoinvestmentteams.OneisfocusingonDigitalTechandtheotheronIndustrialTech.TheDigitalTechfundinvestsinconsumer-orientedbusinessesinthefieldsoffintech,marketplacesandsoftware.TheIndustrialTechfundplacesitsfocusondeeptech,e.g.industry4.0,resourceefficiency,industrialAI,IoT,cybersecruityaswellasMedtech.OurFinTechportfolio:Azimo,Compeon,Finanzcheck.de,GetSafe,Ottonova,Raisin,SumUp.
3.WhatmadeyouinvestintoGetSafeandwhy?GetSafe(www.getsafe.de) isshorteningtheinsurancesupply-chainbygoingstraighttoareinsurer, inthiscase,MunichRe.Theyhavebuilta licensingframeworkaswellasa fullyautonomouspolicyadminsystemthat lets thembuild,underwriteandmanageown insuranceproducts inall three linesofbusiness (health, life,non-life) thatarepackaged inonesingle,flexiblemonthlymembershipforthecustomer.
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Theyremovetheconflictofinterestbetweenpayingclaimsandmakingunderwritingprofitbygivingawaymoneytocharitablecausesifthereare fewerclaimsthan initiallyanticipated.Forcustomers,GetSafe'sproductsare therefore fairbydesign.Finally,customerscanstore theirGetSafeandthird-partyinsuranceproductsinawallet(www.versicherungsmanager.co).
4.Whatisyourtakeawayfrom2017andwhatcanweexpectnextyearin(European)FinTech?FinTechismoreandmorebecomingawinnertakesitallmarketinmostmajorcategories.Weexpectthattofurthermaterializein2018.
5.Yourholidayreadinglist?Thepyramidprinciple-BarbaraMintoEssentialism:thedisciplinedpursuitofless-GregMcKeown
Maximilian Kempken, btov Partners
https://www.linkedin.com/in/maximiliankempken/
(Contd.)
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Ralph Mogicato, Synpulse
https://www.linkedin.com/in/ralphmogicato/1.Tellusabitaboutyourself.Ihaveover25yearsofexperienceinthefinancialindustryinSwitzerland,Germany,AustriaandSingapore.I'mco-founderandusedtobeCEOat theSwissconsultancySynpulse (formerlyknownasSolutionProviders)withover350employeesmainly focusingonbankingandinsurance. Ihaveexpertise instrategybuilding,definingbusinessplansandcases,make-or-buydecisions,evaluationsupportofpackagedsoftware, quality assurance for large projects and compositionof „greenfield units". Since 2012 I'm an very active angel investor, boardmemberoradvisorforstart-upcompaniesinthetechnologyfield(e.g.Starmind,unblu,Contovista)andguestlectureratseveraluniversitiesofappliedsciencesaswellaslecturerattheUniversityofZurich.
2.Whatisyourinvestmentfocus/thesis,andwhichFinTechfirmsareinyourportfolio?My focus is Fintech B2B companieswith an SaaS offering.Mymain investments are Contovista - PFM (Switzerland, ExitOctober 2017),Sonect - Virtual ATM (Switzerland), Fundbase - B2B2C marketplace for alternative investments (Switzerland), APIAX - Reg as a Service(Switzerland),unblu-Co-BrowsingandChatsolutionforFinancial Institution(Switzerland),Allver-fristonlineinsurancebroker inAustria(Austria),Starmind-AIforFinancialIndustry(Switzerland)
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3.Whatmadeyouinvestintoesurance.chandwhy?I'minvestorandboardmemberofthe3rdbiggestinsurancebrokerinSwitzerland.MyfocusisITandDigitalizationandwewerelookingforcollaborationwithseveralinsuretechstartups.Esurancewasoneofthefew,whohasanexcellentteam,apassiontoexecuteandtostrivefornewways.Andhappyenoughtheywereopenforastrategic investmentsfromourside.We'renowdevelopingjointlythefirstSMEonlinebrokerinSwitzerland.
4.Whatisyourtakeawayfrom2017andwhatcanweexpectnextyearin(European)FinTech?Fintechisandwillbeveryimportantforthemajorityofbanksandinsurancecompanies.AsaB2Bfintechinvestorwesawabig interest incollaboration.For2018Ipersonallyexpectmoreinvestments,exitsandstrategicsharedeals.Thefintechisnottheenemyanymore-itisthetheenablerforinnovationintheindustry.
5.Yourholidayreadinglist?Sorry,noreadings-I'maNetflixserialjunkie
Ralph Mogicato, Synpulse
https://www.linkedin.com/in/ralphmogicato/
(Contd.)
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Stefan Tirtey, CommerzVentures
https://www.linkedin.com/in/stirtey/
1.Tellusabitaboutyourself.MynameisStefanandIamMDatCommerzVentureswhichIhelpedkickingoffin2014.Ihavebeeninvestinginearly-stagetechnologyventuresforover15yearsnow,havingpreviouslyworkedforDoughtyHansonTechnologyVenturesandEarlybird.Ihaveinvestedina
numberoftech,b2bandb2ccompanies.IwasthefirstVCtoinvestinSoundCloudandserved5yearsonitsboard.CurrentlyIworkwithourportfolio
companiesetoro,Marqeta,Mambu,andOmnyway.
2.Whatisyourinvestmentfocus/thesis,andwhichFinTechfirmsareinyourportfolio?WeareaspecialistVCfundwithanexclusivefocusonfintech
andinsurtechopportunities.Commerzbankisoursolebacker.Asafinancialinvestorwehaveasinglemindedfocusondeliveringfinancialreturnsfor
ourinvestor.Weliketobackfounderswithbigideasandanabilitytoarticulatewhytheycandominateaparticularmarket.WeinvestfromSeriesAonwardsacrossEurope,IsraelandtheUS.Ourportfolioincludes:Marqeta,eToro,Mambu,GetSafe,PayKey,OmnyWay,Bankin',andiwoca.
3.Whatmadeyou invest intoBankinandwhy?Weinvested intoBankin'because itsolvestworelevantproblems.Firstofall,peopleareusinganincreasingnumberof institutionsand internetplatformsfordifferent financialproducts,buthavenocentralplacetoconsolidateandmanagetheir
accountsfrom.Second,theUXofretailbanks'mobileapplicationsisstillsubparandoftentheseappslackanyadditionalvalue-addingfeatures.
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Bankin'solvesbothproblemswithabeautifullydesignedand intuitiveappthatoffersaccountaggregationaswellaspersonalfinancialmanagement
features that make life easier for the user. Two million people have already signed up and are actively using the app to manage their finances.
Surprisingly,mostoftheseonlyconnectoneaccounttotheapp,showingthattheUXofBankin'isfarsuperiortothatofthenativebankapps.
4. What is your takeaway from 2017 and what can we expect next year in (European) FinTech? 2017 has been an interesting year for fintech.
Investmentintoourtargetsectorscontinuesonahighlevel.Competitionforthebestteams/companiesisfierce.Wesawmanymaturestartupsmakingsignificantprogressoperationallyandraisinglargefinancingroundstosupporttheirfurthergrowth.ThehistoricEuropeanwayofcapitalefficiency(aka
"starvingcompaniestosuccess")isclearlybeingreplacedbyanenvironmentwherethebestEuropeanfounderscanraisehugeroundsmuchliketheir
USpeers.Weseemoreandmorenon-traditionalplayersmakinginvestments:therearemultiplestrategicinvestorscompetingforbusinesswithpure
playVCs.Wealso seemoreandmore seniorexecutives from thebankingand insurance sectorsbacking their former colleagues. The resultingdealstructures(andvaluations)arenotalwaysconducivetoraisingsubsequentfinancingfrominstitutionalVCs.
Stefan Tirtey, CommerzVentures
https://www.linkedin.com/in/stirtey/
(Contd.)
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Onecannotwriteabout2017andnotmentioncrypto.Exchangesandbrokerssawandseetheirbusinessesbooming,fueledbyskyrocketingpricesand
mediaattention.ThesamegoesforICOsandthescandalsthatcamewithit.IimagineustobesomewherebehindthepeakoftheHypeCycle:expectlotsofdisappointment(andlostfortunes)andsomehugesuccesses.Nowthatregulatorsarefirminguptheirpositions,theindustryisgettingtowork,
buildingtheinfrastructureandservicesthatwillallowforlegallycompliantICOs.Onewayoranother,ICOsareheretostay.
TheB2CvsB2BmixinourdealflowiscontinuouslychangingtowardsB2B.SomecompaniesthatoriginallystartedasB2Cmodels(Roboadvisors!)arenowpositioningthemselvesasenablersfortraditionalfinancialservicesprovidersthathavebrandsandconsumeraccess.Thatsaidanumberof"high
velocity"consumerfinancecompaniescontinuetoattractlargesumsoffinancing(e.g.Transferwise).Moreover,anincreasingnumberofcompaniestry
solvingproblemsforbankingoperations:e.g.inKYC,inbecomingcompliantwithregulationssuchasGDPR,MifidII,andPSD2,andinIToperations.
5.Yourholidayreadinglist
● SilkRoadsbyPeterFrankopan,tellingtheworldhistoryfromacentralasianpointofview
● HappyCity:TransformingOurLivesThroughUrbanDesign-"thestoryofhowthesolutionstothiscentury'sproblemslieinunlockingthesecretsto
greatcityliving"
● TheSympathizerbyVietThanhNguyen-thelifestoryofaVietCongspy
Stefan Tirtey, CommerzVentures
https://www.linkedin.com/in/stirtey/
(Contd.)
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