fintech in stockholm 2015 - di fintech conference
TRANSCRIPT
Stockholm FinTechAn overview of the FinTech industry in the greater Stockholm Region
Robin TeiglandStockholm School of Economics
[email protected]/eteigland
@RobinTeigland
September 2015
Banking is essential,
but banks are not.
Bill Gates
In just the past few years in Stockholm…Company Founded Business
Klarna 2005 E-commerce payment services
MyLoan 2006 Loan broker
Trustly 2008 Online payments
TrustBuddy 2009 P2P lending
iZettle 2010 Mobile payments
FundedByMe 2011 Crowdfunding, crowd equity
Kivra 2011 Digital mailbox
Tink 2012 Personal finance
Safello 2013 Cryptocurrency exchange
KnCMiner 2013 Cryptocurrency mining equipment
Toborrow 2013 P2P lending for companies
Cryex 2014 Cryptocurrency clearing house
High concentration of FinTech companies around downtown Stockholm
1950 1960 1970 1980 1990 2000 2010
1959, Bankgirot founded
1985, Swedish financial and credit markets deregulated
1968, World’s first online ATM in Sweden
First wave of electronic trading software companies emerges
2003, First BankID issued in Sweden
1990s, Sweden invests in Internet infrastructure, today country with 3rd highest Internet penetration
2010, iZettle founded
2010, Neonet $160M exit 2014,
iZettle raises $55M2014, Klarna
raises $125M in PE
1967, First ATM installed in Sweden
1984, Optionsmäklarna (OM) opens in Stockholm, Sweden’s first stock option market, electronic trading introduced
2012, TriOptima, $160M exit
2005, Klarna founded
1998, Merger between Stockholm’s Stock Exchange and OM Stockholm
2007, NASDAQ acquires OMX Group
Unicorns such as Skype, King, Spotify and Mojang founded
2014, FinTech Funding in Stockholm Explodes
Long history of “FinTech” in Stockholm
Stockholm #2 FinTech city in EU
2010-2014 investment● #2 EU city with 18% total● 31 investments - $532 M● 8 exits - $381 M disclosed
2014 total investment● 15 investments - $266 M● 50% of 5 year investment total● 3 exits (2 undisclosed) = $20 M
Top 2014 Investments in Stockholm FinTech Companies (Mln)
Klarna $ 125iZettle $ 55Trustly $ 29Bima Mobile $ 22KNC Miner $ 14 ($ 29)
● 2014 FinTech investment in Stockholm is 32% total investment in Sweden
● But Stockholm FinTech workers only ~0.05% of Sweden’s population
”New” FinTech on par with ”Old” FinTech
Trading & Banking Tech● Classic heavyweights,
real base of Stockholm FinTech
● Mix of new entrants in past 10 years helped drive growth
Payments● New heros, currently
primary growth driver● Received $470 M or
88% of FinTech investments in past 5 years
2013 FinTech revenue in Stockholm
Cryptocurrency0%
Transfers2% Innovative Lending
5%
Wealth Man-agement
9%
Other FinTech12%
Payments33%
Trading & Bank-ing Tech
39%
International investors noticing Stockholm
2014 2013 2012 2011 20100
5
10
15
20
25
30
Other
US
EU (Excluding Sweden)
Sweden
Year
Num
ber o
f Inv
esto
rs
Where do investors come from?
2014 2013 2012 2011 20100
5
10
15
20
25
30
# of in-vestments
# of Firms in-vesting in Sthlm FinTech Companies
Year
Annual investment numbers for Stockholm FinTech companies
Stockholm – The Ideal FinTech Location● The Nordic tech and financial hub● Supportive local startup ecosystem● High-tech early adopters provide test market● Natural global focus● ”Down-to-earth” Swedish leadership style● Relatively low wage costs● Strong government and social security benefits
FinTech – An increasingly crowded space
• Growing number of entrepreneurs with experience from established finance industry
• Increasing number of FinTech incubators • Collaboration among established banks• Open innovation through open APIs• Other big non-banking entrants
Major actors running incubators
Actor Incubator Location
Citi Mobile Challenge Americas, EMEA, Asia Pacific
DBS & Nest Investment Accelerator Hong Kong
Wells Fargo Startup Accelerator USA
Accenture and Bank of America, Merrill Lynch, Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, UBS
Innovation Lab NY, London, Hong Kong
“Innovation labs are a sign that banks are taking the FinTech threat seriously as they recognize that we’re coming to eat their lunch.”
-FinTech Entrepreneur
Betting on the Blockchain - Together
Goldman Sachs, JPMorgan, Credit Suisse, Barclays,
Commonwealth Bank of Australia, State Street, RBS, BBVA, UBS
+
Opening up innovation…
Citigroup Capital OneBBVA Compass Silicon Valley BankBank of America
IBM + Samsung
If the rate of change on the outside (of an organization)
exceeds the rate of change on the inside, the end is near....
-Jack Welch
Our FinTech report is here: http://www.slideshare.net/eteigland/stockholm-49722748
Robin [email protected]
www.slideshare.net/eteiglandwww.funnovation.se
@RobinTeigland
If you love knowledge, set it
free…
If you like this presentation and would like to contribute to our research, we accept bitcoins: 14hs4JbnQLXE87GGzu84uXGaspmxmnLpwC.Thank you!!!!!
Under-representation in reports
● Before 2014 Stockholm investments were small● VC vs PE, Stockholm is PE heavy● Certain databases simply missing information● London suffers also, $ 539 M self-reported often higher
than attributed numbers
Consistent exits
Name YearTotal Value of
Company at Time of Exit (USD M)
Comments
Lendo 2010 $29 51% to 97% by Schibsted Growth
Neonet 2010 $158 Acquired by ORC
TriOptima 2012 $159 ICAP Group Holdings 38% to 100%
Shareville 2013 undisclosed Majority Stake Sold to Nordnet
TrustBuddy 2013 $15 100% to 360 Holdings AB
MPS 2014 undisclosed Acquired by Cidron SuperPay AB
Payson 2014 undisclosed Acquired by SveaEkonomi
TradeTech 2014 $20 Acquired by Virtusa
DIBS 2014 $107 Delisted/Acquired by Nets
Segments
Cryptocurrency: Bitjoin, ChromaWay, Cryex, KnCMiner, Safello
Innovative Lending: Consector, Crowdculture, Emric AB, FundedByMe, kortio, Lånbyte.se, lendify, Lendo AB, Myloan (owned by Insplanet), qvido, Toborrow, Trustbuddy
Other FinTech: Algorithmica, BehavioSec, Bimamobile (Milvik AB), Bolånegruppen (Our Interest AB), Mopper, ORC Group/Orc Software, Pantor, Tbricks, TriOptima, Zenconomy, Trema
Transfers: Seamless Distribution, Swish (GetSwish AB)
Segments (cont'd)
Payments: Accumulate, Allopass, Babs Paylink, betalo, Billhop, iZettle, Klarna, Mondido, MPS (Mobile Payment Solutions), PayAir, Payex, Payground, Payson, Prello, Qliro AB, Seamless Payments, Trustly, Vaulted Payments, wywallet (4T Sverige)
Trading & Banking Technologies: Aphelion, Camerontec, Cinnober, CMA Small Systems, Neonet, Nordnet, OMX Technology, Shareville (part of Nordnet), SunGard Front Arena
Wealth Management: Avanza, InsPlanet, Qapital, Tink