FinTech deal highlights (Germany / DACH and global), learnings and take-aways for FinTech startups, investors, banks etc. presented at 2nd FinTech Forum DACH event on 9th May in Frankfurt.

1. 1
FinTech Deals Round-up: D-A-CH and Global
Opportunities for the Rafikis
Samarth Shekhar
Co-Founder, FinTech Forum DACH
9th May, 2014 | Frankfurt am Main
FinTech Forum DACH
a BankITX and TechFluence initiative

2. 2
FinTech Investment Trends
• In the last 5 years…
– FinTech investment tripled (~$930 mn in 2008 to ~$2.97 bn. in 2013)1
• In the last 3 years…
– Investments into FinTech grew 4x faster than VC investment overall1
• In the last year (2013)…
– New FinTech-focused funds worth > $1bn were launched2
• In the last quarter (Q1-2014)…
– VC investment in European FinTech companies reaches post-dotcom
high (€ 166 mn in Q1-2014 vs. €263 mn in Q2 2000)3
1 TechCrunch: Global Fintech Investment Boom Is Benefitting London Most …
2 FinTech Forum: 1 Billion USD for new FinTech-focused funds in 2013
3 Financial News: VC investment in European fintech companies reaches post-dotcom high
4 Unquote: Fintech: throwing down the gauntlet to financial services
However, 2013 deal volume in DACH: ~2% of global vs. US (~60%), UK (~30%) 4

3. 3
Updates: FinTech Forum DACH
• Jul. 2013: Launched FinTech Forum DACH: first hub for FinTech startups,
investors, banks etc. in German-speaking Europe
• Aug.-Oct. 2013: Identified 100+ FinTech startups in DACH & 50+ investors
• Nov. 2013: First FinTech startup pitch event in the region
• Jan. 2014: First weekly newsletter covering DACH FinTech startup scene
• Feb. 2014: First(-ever) Study of 100 DACH FinTech Startups
• Mar. 2014: Partner and judge at the Innotribe Startup Challenge 2014
• May 2014: DACH FinTech Startup Ecosystem: joint study with Bankstil)
In the last 4 months in D-A-CH: Pitch Days for 2 new incubators, 1 new FinTech
mega-event, 1st VC Magazin FinTech Roundtable…

4. 4
Selected DACH FinTech Deals: 2011+
Credit card processing (Square rival). Rocket Internet , plus over €10 mn
from New Enterprise Associates, ru.net, Holtzbrinck Ventures in 2012
SaaS Banking Software for Microfinance: $2 mn from Point Nine Capital,
Runa Capital and Kizoo in 2013
Online payment startup (Stripe rival). > €14 mn from Holtzbrinck
Ventures, Sunstone Capital and Blumberg Capital in 2013.
P2P lending platform. $12 mn from Index Ventures, Union Square
Ventures in 2013.
* Disclosed deal amounts between 2011+ only. Sources: http://venturebeat.com/ , http://venturevillage.eu/,
http://www.gruenderszene.de/, http://techcrunch.com/
Big data credit scoring/micro-lending. Multi-mn. € from Blumberg Capital,
Point Nine Capital, Heiko Hubertz (Bigpoint), Samwer Brothers in 2013.
Licensed Web 2.0 Bank. JZ International, Corporate Finance Partners,
Anthemis Group, Life.SREDA, founders etc.
Online credit marketplace. > € 4 mn from Privatbank Banca Sella ,
Earlybird, Neuhaus Partners in 2011

5. 5
Kreditech pumpt sich weitere 15 Millionen Dollar
LaterPay sammelt 3 Millionen ein
SevenVentures schließt Media-Deal mit Online-Banking-App Numbrs
Zencap-Das neue Rocket-Startup – Lendico für den Mittelstand
Crowdsource Insurance Startup Friendsurance Raises New Cash
(“multi-mn.”)
Klarna Acquires Germany’s Sofort For $150M To Build A
Formidable European Payment Network
E-Loan Specialist Wonga Buys BillPay, The PayPal Of Germany…
Minkabu aus Japan übernimmt sharewise
Selected DACH FinTech Deals: 2011+
* Disclosed deal amounts between 2011+ only. Sources: http://venturebeat.com/ , http://venturevillage.eu/,
http://www.gruenderszene.de/, http://techcrunch.com/
2014+

6. 6
FinTech “LEGO”: global updates
• FinTech / digital banking market
share expected to be 35% by 2020
• Square valued at $5B
• LendingClub (P2P lending) raised
$180M, eventually valued at $2.3Bn
• eBay acquired payment and billing
platform Braintree for $800M
• Sberbank set up $100 million fintech
start-up fund
• Banco Santander put $6.6m+ into
mobile PoS firm iZettle
• Goldman Sachs put $25M in traders’
social network MotifInvesting
• Spain's BBVA acquired online bank
Simple for $117M
• Five UK banks* added new mobile
payment facility Zapp to their apps
• London FinTech Accelerators:
Barclays / TechStars, Level39,
Startupbootcamp FinTech
• FIS acquired mobile payments firm
mFoundry for $165M
• VISA invested €45M into mobile
banking platform Monitise.
• First Data bought T-commerce
startup Clover for $34.1M, loyalty
programs startup Perka for $30M.
• BBVA announces
• Web companies, Telcos seen as the
biggest threat to banks (EFMA study)
– Amazon moved into P2P and in-
store payments
• T-Mobile: your next bank in US!
* Metro Bank, Santander, Nationwide, First Direct, HSBC

7. 7
Learnings / take-aways for…
• Startups: (disproportionate) opportunity, but window of 1-3 y
– After US & the UK Germany/Continent “waiting to happen”
– Option 1: grow to global domination in their space
– Option 2: domestic/European market leaders (acquisition targets!)
• Investors: under-marketed but high-potential startups in
DACH / Continent (vs. near-hype in US, UK)
– B2C startups: “Bankenstürmer” / competitors or partners
– B2B startups: also in other sectors! (Who wanted to sell to banks in
crisis?)
• Banks (in D-A-CH): if you don’t do it somebody else will: other
banks, other banks in other countries, telcos, tech giants etc.)
As Rafiki advises in Lion King 1 ½ (2004), “Look beyond what you see!”