Inspired as part of a state-sponsored effort, alongside expected private initiatives, starting in April Deutsche Borse - operator of a number of business lines and exchanges - will provide access for startups to join its new facility dedicated to supporting FinTech companies in Frankfurt.
Deutsche Borse CEO Carsten Kengeter presented the company's plans at its new dedicated space in Frankfurt today, with the German Minister of Economics of the Hesse region Tarek Al-Wazir present who was quoted in the press release saying: “Deutsche Börse's initiative contributes to the emergence of a lively and diverse ecosystem in Frankfurt containing various start-up centres operated by financial market players with different focuses and profiles, who can give each other various impulses.”
We will continue to be actively involved in creating suitable conditions for these growth companies in Frankfurt.
New Deutsche Borse Dedicated Space in Bornheim Area
The company has rented a loft-style open space in Frankfurt, located on Sandweg Strasse in Bornheim, where the regional economics minister Mr. Al Wazir met with Deutsche Borse's CEO earlier today, according to people close to the developments. The news follows yesterday's coverage by Finance Magnates about a potential merger of the company with the LSE.
Deutsche Borse is still finalising the criteria that FinTech companies will need to meet in order to be accepted into the new space, which will cater to nearly 60 people initially depending on the size of each startup.
Deutsche Borse CEO Carsten Kengeter, Hessian Minister of Economics Tarek Al-Wazir, and Deutsche Borse Board Member Hauke Stars, from left to right. Source: Deutsche Borse
Whether a start-up is bootstrapping and looking for affordable c0-working space, or scaling its ideas and looking for VC funding, bringing such companies together around a common theme of financial technology can help provide resources from within a single location to the accepted participants.
The shared spaces or dedicated incubator style workplaces for tech companies and startups continues to be a popular approach to concentrating talent within a common environment and is a structure used from Silicon Valley, to New York, to cities in Asia, in both private and public initiatives.
Initiative to Help Industry and Local Economy
With the aim to support a specific industry, the public effort will help with matching talent and other resources to companies' needs, while creating new jobs and product solutions via innovation and development, thus justifying the government's support as it is aimed to help the local economy. In addition, private initiatives, such those as announced by Deutsche Borse, will feature alongside the effort in Frankfurt.
For the Exchange operator, it provides an opportunity to contribute in many ways, including marketing itself, and cross-selling some of its services to providers that may rely on some financial technology components that their own FinTech firms will operate across, as well as related sides of the industry that they can gain access to further to Deutsche Borse's Venture network.
Commenting in the company's press release, Deutsche Borse CEO Mr. Kengeter said: "We will continue to be actively involved in creating suitable conditions for these growth companies in Frankfurt.”
A company spokesperson explained to Finance Magnates reporters that the aim is not just within the segments that Deutsche Borse focuses within regarding FinTech but includes other sides of the spectrum including Payments and banking, for example, and the many sides of financial technology that startups can focus on.
Deutsche Borse will support FinTech startups in a number of ways, including with funding, business opportunities, and networking, among other areas as it covers the rental costs and other operational expenses (provided through the use of its facility and services) to help new startups in Frankfurt create financial technology.
