stockholm fintech

Fintech in StockholmProfessor Robin Teigland

Nick Westley-James and Claire Ingram Stockholm School of Economicswww.slideshare.net/eteigland

[email protected] @RobinTeigland

April 2016

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Over the past year

3

2015 2014 2013 2012 2011

137.7

266.2

17.655.4

181.6

Continued strong investment in Stockholm Fintech companies

USD mln

USD 658.5 mlnInvested over past 5 years

Who invests in Stockholm Fintech?

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Stockholm hits 100 Fintech companies

20152014201320122011201020090

10

20

30

40

50

60

70

80

90

100

Stockholm Fintech companies by segment

PaymentsOther FinTechLendingTrading and Banking TechWealth ManagementCrypto CurrencyCrowdfunding

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Acquired companies included in these totals

Steady growth in revenue and employees

2010 2011 2012 2013 2014 2015 (est)0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Revenue Employees

Reve

nue

(bn

SEK)

2010, 2011 from previous Fintech report. 2012-2014 from largestcompanies.se, retriever databases. 2015 est. using 2014 growth rate

2015>14bn SEK Revenue >5800 Employees

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Stockholm’s path to Fintech success

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Moving in on traditional bank territory

Inspiration from CB Insights, SEB base webpage slightly modified to make more room

The future of blockchains and bitcoin?

15.0m USDAccel, Creandum,

GP Bullhound, Martin Wattin

10.0m USDNorthzone, White Star Capital

0.7m USDCrowdfunding, Techstars

>1bln USD invested

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EU Payment Services Directive (PSD)

• Payment Services Directive 2 (PSD2) passed on January 12, 2016• Must be included in domestic legislation in 2 years• Among other things, requires that banks open up, through APIs• Intention is to improve consumer experience• Some precedent (e.g., Tink), but no longer discretionary• What does this mean for FinTech?

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Questions?

Image credit investstockholm.com

Acknowledgements

Björn Bergström, Industrifonden, for help identifying companiesStockholm Community, for help crowdsourcing companies

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Highlights from last year’s report

531.9m USDInvested in Stockholm Fintech companies over 2010-

2014

18.7%Of total EU Fintech funding invested in Stockholm

companies over 2010-2014

7.7%Of total EU Fintech deals involved Stockholm

companies over 2010-2014

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137.7m USD in funding to Stockholm Fintech companies in 2015

66.6m USD Intel, Zouk Capital, Creandum, Dawn

Capital, Index Ventures, MCI Capital, Northzone

15.0m USDAccel, Creandum, GP

Bullhound, Martin Wattin

10.0m USDNorthzone, White

Star Capital

1.9m USDUndisclosed

1.4m USDNorthzone,

Undisclosed Angels

0.6m USDPeter Gyllenhammar

0.6m USDNFT Ventures

0.5m USDAndreas Bonnier

0.7m USDCrowdfunding,

Techstars

Undisclosed UndisclosedAggregate Media

UndisclosedNFT Ventures


38.0m USDKinnevik, LeapFrog

0.7m USDNFT Ventures

0.5m USD Karl Johan Persson

1.2m USDStaffan Persson, Thord

Wilkne


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Two payments rock stars paving the way

Description and total funding taken from Crunchbase

Klarna provides e-commerce payment solutions for merchants and shoppers.

Founded: 20052014 Employees: 1 0172014 Revenue: 2 200m SEKDisclosed funding to date: 291.3m USD

iZettle, a leading mobile payments company, offers small businesses portable point of sale

solutions and free sales overview tools.

Founded: 20102014 Employees: 1672014 Revenue: 190m SEKDisclosed funding to date: 244.0m USD

2015 private investments in Stockholm Fintech companies totaled 137.7m USD, 5 year total of 658.5m USD

Company Segment 2015 Investment (m USD)

iZettle Payments 66.6Bimamobile Other FinTech 38.0KNC Miner Crypto Currency 15.0

Cryex Crypto Currency 10.0Tessin Crowdfunding 1.9

Qapital Wealth Management 1.4

ET Network Payments 1.2

Mr Shoe Box Other FinTech 0.7Safello Crypto Currency 0.7Capcito Lending 0.6

Pensionskraft Wealth Management 0.6Fidesmo Crypto Currency 0.5

TradeVenue Wealth Management 0.5Depos Payments Not Disclosed

Barnpengar Wealth Management Not DisclosedConsector Lending Not Disclosed

Leaseonline Lending Not DisclosedNordkap Other FinTech Not Disclosed

2015 2014 2013 2012 2011

137.7

266.2

17.655.4

181.6

Fintech companies by segment

Segment 2009 2010 2011 2012 2013 2014 2015Crowdfunding 0 1 2 3 3 7 7

Crypto Currency 0 0 0 3 5 9 10

Wealth Management 2 2 2 4 5 9 10

Trading and Banking Tech 14 15 15 15 15 15 16

Lending 5 6 6 8 9 14 16

Other FinTech 4 7 9 12 13 17 18

Payments 10 12 16 18 20 22 23

Total 35 43 50 63 70 93 100

Fintech companies in Stockholm existing per year2015201420132012201120102009

0102030405060708090100

PaymentsOther FinTechLendingTrading and Banking TechWealth ManagementCrypto CurrencyCrowdfunding

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Stockholm Fintech at a glance

Fintech companies founded in 2014/2015Company Founding Year Description Segment

Digital Portfolio Control 2015 Software to monitor, report and control institutional asset portfolios. Trading and Banking TechInkassogram 2015 Simplifies debtor and creditor relationship Lending

Lenovium 2015 Mortgage maturity optimization service Lending

Primepilot 2015 AI based investing advice Wealth Management

XBT Provider 2015XBT Provider manages Bitcoin Tracker One and Bitcoin Tracker Euro. With these

instruments anyone can invest in Bitcoin as ETN:s, exchange-traded notes, from anywhere in the world

Crypto Currency

ZignSec 2015ZignSec is Scandinavia´s most modern verification platform. ZignSec help bank customers (Merchants) to verify users through a series of look-ups in real-time; Nordic eID, IP-checks, device geolocation, device usage, blacklists, credit checks, AML checks and much more.

Other FinTech

Zimpler 2015 Mobile gaming focused payment service provider PaymentsCryex 2014 Institutional financial trading platform Crypto Currency

Capcito 2014 Short term loans against receivables Lending

Tessin Nordic 2014 Property Crowdfunding Crowdfunding

TradeVenue 2014 Social meeting place for savers Wealth ManagementPensionskraft 2014 Pension comparison and monitoring Wealth ManagementBarnpengar 2014 Personal finance tool for children Wealth ManagementConsector 2014 Personal loan comparison services Lending

Leaseonline 2014 Online car leasing service Lending

Billecta 2014 Billing software Other FinTechBitrefill 2014 Recharge your mobile phone with bitcoin Crypto Currency

Chromaway 2014 Enterprise platform for coloured bitcoins Crypto CurrencyCo-Owning 2014 Crowdfunding for real-estate investments Crowdfunding

Leasify 2014 Business lease managagement system Other FinTechlendify 2014 Loans between private individuals Lending

Monetise 2014 Short term loans against receivables LendingNOWO 2014 Credit card with automatic retirement savings Other FinTech

Pensionera (Pensionera förmedling i Sverige AB) 2014 Pension comparison and monitoring Wealth Management

Pepins (Pepins Nordic AB) 2014 Equity crowdfunding platform CrowdfundingPrello 2014 mobile POS Payments

Qliro AB 2014 Online payment solution provider PaymentsSciety 2014 Health and Lifescience business crowdfunding platform CrowdfundingSlipp 2014 Accounting solutions provider Other FinTech

Strawpay 2014 Developing a highly scalable open transaction protocol Crypto Currency