Deutsche Börse Creates DB1 Ventures to Invest in Fintech Companies

Tuesday, 21/06/2016 | 11:36 GMT by Steven Hatzakis
  • DB1 Ventures emerges as Deutsche Borse's new venture capital fund for fintech investments.
Deutsche Börse Creates DB1 Ventures to Invest in Fintech Companies
Deutsche Börse's trading floor in Frankfurt, Bloomberg

Deutsche Börse, leading Germany-based operator of multiple financial institutions including exchanges and clearinghouses, today announced the launch of DB1 Ventures.

The new platform is a corporate venture capital fund that will focus primarily on early-stage financial technology firms as well as Fintech firms on the cusp of growth as technology fuels the next phase of finance.

Instead of going alone, fintech firms can decide to pursue a collaborative approach with leading incumbents through partnerships, including market infrastructure firms.

The new world of online trading, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.

German fintech scene

The news follows Deutsche Borse's announcement earlier this year of a fintech hub launched in April 2016 to support the local government’s related initiative in Frankfurt.

As part of its plans, DB1 Ventures will invest only in areas that are strategic to the company, including managing its existing fintech portfolio, and will be funded using Deutsche Borse’s balance sheet.

This dual approach will allow us to bring in our professional expertise as a market infrastructure provider and offer value creation opportunities for fintech companies.

Deutsche Borse had made a number of minority investments across emerging and mature fintech firms including Digital Asset, and invested in Illuminate’s IFM Fintech Opportunities Fund, among other venture capital stakes.

An excerpt of a presentation from DB1 Ventures shows some of the prior investments made by Deutsche Börse in fintech related firms, as seen in the graphic below:

Screen Shot 2016-06-21 at 6.17.19 PM

Collaboration benefits

Deutsche Börse CEO Carsten Kengeter commented in a statement regarding the announcement: “Our objective with DB1 Ventures is to continue to be active in investing in early to growth stage ventures which are core or adjacent to our client, product, geographic and technology strategy. And as part of our active management, we will also deepen and extend promising partnerships with some of our current portfolio companies."

Ankur Kamalia Source: Deutsche Borse

Ankur Kamalia
Source: Deutsche Borse

Ankur Kamalia, Managing Director at Deutsche Börse, and Head of Venture Portfolio Management and responsible for DB1 Ventures, explained in a statement: “This dual approach will allow us to bring in our professional expertise as a market infrastructure provider and offer value creation opportunities for fintech companies."

Mr. Kamalia added: "In return, we will benefit from new ideas and technological developments in an early stage. Simultaneously, we continue to actively manage our existing portfolio of investments, including divestments where necessary.”

Recent report with Celent

In addition, the company recently participated with Celent in a report titled 'Future of Fintech in Capital Markets', as research data is increasingly sought by market participants amid the growing potential for new fintech innovations.

David Easthope, Senior Vice President and responsible for the securities and investments practice of Celent, added in a statement regarding the news: “Major parts of the financial services ecosystem are being transformed by pioneering financial technology firms. Instead of going alone, fintech firms can decide to pursue a collaborative approach with leading incumbents through partnerships, including market infrastructure firms. Combining forces will allow fintech firms to shape the future of capital provision, technology, and other industry workflows.”

An excerpt of a chart from an institutional presentation from DB1 Ventures can be seen in the graphic below, outlining the fund's areas of focus:

Soruce: DB1 Ventures

Source: DB1 Ventures

Research

Navigating the fintech landscape can be challenging as competition is on the rise and the market is becoming saturated with providers, and as various regulatory themes emerge from different parts of the world.

Accordingly, the DB1 Ventures fund will focus on fintech companies involved in areas such as Regulation , compliance, and connectivity, and other segments that fit into Deutsche Borse’s ‘accelerate’ growth strategy and overall plans for fintech.

Finance Magnates' Business Intelligence division is preparing extensive research in our upcoming Quarterly Industry Report (QIR) for the 2nd quarter of 2016, as June comes to a close and Q3 fast approaches.

Deutsche Börse, leading Germany-based operator of multiple financial institutions including exchanges and clearinghouses, today announced the launch of DB1 Ventures.

The new platform is a corporate venture capital fund that will focus primarily on early-stage financial technology firms as well as Fintech firms on the cusp of growth as technology fuels the next phase of finance.

Instead of going alone, fintech firms can decide to pursue a collaborative approach with leading incumbents through partnerships, including market infrastructure firms.

The new world of online trading, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.

German fintech scene

The news follows Deutsche Borse's announcement earlier this year of a fintech hub launched in April 2016 to support the local government’s related initiative in Frankfurt.

As part of its plans, DB1 Ventures will invest only in areas that are strategic to the company, including managing its existing fintech portfolio, and will be funded using Deutsche Borse’s balance sheet.

This dual approach will allow us to bring in our professional expertise as a market infrastructure provider and offer value creation opportunities for fintech companies.

Deutsche Borse had made a number of minority investments across emerging and mature fintech firms including Digital Asset, and invested in Illuminate’s IFM Fintech Opportunities Fund, among other venture capital stakes.

An excerpt of a presentation from DB1 Ventures shows some of the prior investments made by Deutsche Börse in fintech related firms, as seen in the graphic below:

Screen Shot 2016-06-21 at 6.17.19 PM

Collaboration benefits

Deutsche Börse CEO Carsten Kengeter commented in a statement regarding the announcement: “Our objective with DB1 Ventures is to continue to be active in investing in early to growth stage ventures which are core or adjacent to our client, product, geographic and technology strategy. And as part of our active management, we will also deepen and extend promising partnerships with some of our current portfolio companies."

Ankur Kamalia Source: Deutsche Borse

Ankur Kamalia
Source: Deutsche Borse

Ankur Kamalia, Managing Director at Deutsche Börse, and Head of Venture Portfolio Management and responsible for DB1 Ventures, explained in a statement: “This dual approach will allow us to bring in our professional expertise as a market infrastructure provider and offer value creation opportunities for fintech companies."

Mr. Kamalia added: "In return, we will benefit from new ideas and technological developments in an early stage. Simultaneously, we continue to actively manage our existing portfolio of investments, including divestments where necessary.”

Recent report with Celent

In addition, the company recently participated with Celent in a report titled 'Future of Fintech in Capital Markets', as research data is increasingly sought by market participants amid the growing potential for new fintech innovations.

David Easthope, Senior Vice President and responsible for the securities and investments practice of Celent, added in a statement regarding the news: “Major parts of the financial services ecosystem are being transformed by pioneering financial technology firms. Instead of going alone, fintech firms can decide to pursue a collaborative approach with leading incumbents through partnerships, including market infrastructure firms. Combining forces will allow fintech firms to shape the future of capital provision, technology, and other industry workflows.”

An excerpt of a chart from an institutional presentation from DB1 Ventures can be seen in the graphic below, outlining the fund's areas of focus:

Soruce: DB1 Ventures

Source: DB1 Ventures

Research

Navigating the fintech landscape can be challenging as competition is on the rise and the market is becoming saturated with providers, and as various regulatory themes emerge from different parts of the world.

Accordingly, the DB1 Ventures fund will focus on fintech companies involved in areas such as Regulation , compliance, and connectivity, and other segments that fit into Deutsche Borse’s ‘accelerate’ growth strategy and overall plans for fintech.

Finance Magnates' Business Intelligence division is preparing extensive research in our upcoming Quarterly Industry Report (QIR) for the 2nd quarter of 2016, as June comes to a close and Q3 fast approaches.

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