News – 2017 Review and 2018 Outlook

Chris and Joe talk about the reviews of the startup year 2017 they have found and the forecasts for 2018 they find noteworthy. The recoding was done on January 6th 2018

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2017 Fintech Review Germany and 2018 Outlook

The fintech review Germany is one of the traditions of Startupradio. We started it in German back in 2014, when fintech first appeared. Since Startupradio.de will be shut down the end of 2017, we moved our tradition to the English channel. If you are able to speak German, you will find the old shows here:

Our guests: 

Luka – CrunchBase – LinkedIn

Paolo – CrunchBase – LinkedIn

 

 

Our sponsors:

Slack.com

Startups.Observer

 

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Startup News Germany Wrap-up – November

Sponsoring Message

Support for this podcast and the following message comes from Slack. Millions of people in hundreds of thousands of companies rely on Slack to get their work done. For them, Slack is where all the people and tools they need to work are gathered. Where ideas form, evolve and reach fruition. Where plans are proposed, documents exchanged, expenses approved, travel booked and deals signed off. Where decisions are made and consensus is reached. Where the humdrum becomes the easily done. Slack: where work happens. Find out why at slack.com.

Startups.observer supports this program. Startups.observer is like online dating for startups and investors. Learn more here: http://startups.observer/

 

We will be back in the new year.

Housekeeping

Once again we have published a lot of videos since our last news podcast. www.youtube.com/c/startupradio.

We talked in a series to startups in the Merck Accelerator program (who also sponsored the videos) including

  • A tool, which turns your smartphone in a microscope and help craft beer brewers https://youtu.be/FREsJCYloUo
  • A startup, which helps diabetes patients in their daily live without the need for drops of blood and an algorithm to forecast your blood sugar https://youtu.be/4ggx2QUTYDE
  • A 22-year-old entrepreneur, who had a part of his brain removed in a neurosurgery in order to cure him of epilepsy. He now wants to help others recover faster with his VR Startup https://youtu.be/zPfhlw7MPbI

 

We have also been to the Euro Finance Tech. See the videos including a startup from Chicago, Rome, Berlin and Frankfurt: https://www.youtube.com/playlist?list=PLUbiCAQc22WttfUje1wgmq99Ovc6XnaXv

 

Finally, we had an audio podcast with Patrick de Zeeuw, CEO, and Co-Founder of Startupbootcamp Amsterdam https://www.youtube.com/watch?v=DBnefn14JUs&t=2s

 

Joern is also busy as co-author. E.g. here in this article: The Complete Frankfurt Startup City Guide | StartUs Magazine http://ow.ly/AnMT30gUztR  

Raisin – How the financial crises inspired this former partner in a large consultancy to jump ship and found a startup

In this interview we talk to Dr. Tamaz Giorgadze, who came to Germany from his native Georgia, eventually becoming a partner at the German office of McKinsey & Company. During the financial crisis, he saw a demand for retail deposits by banks and decided to jump ship to set up his own company. The company is operating as weltsparen.de in Germany and raisin.com internationally. Joern talks to Tamaz and you get a quick overview of what banks actually do, where they get their money from and how retail investors in Europe profit from this.

We are talking during the interview about those topics:
Wholesale funding
Bank’s transformation function 
Duration

Regulatory measures of bank’s liquidity
Liquidity coverage ratio  
Net Stable Funding Ratio 

Deposit 
KYC – Know your customer 
AML – Anti Money Laundry
TÜV – A German association of mostly technical auditors

Payment topics we touch
SEPA
TARGET 2
And a correspondent bank system (all money transfer used to be done this way)

Deposit insurance schemes (how saver’s money is insured)
Harmonized scheme in Europe

Berlin Startup Jobs Fair 2017 – One of Germany’s hottest startup jobs fair

Ashok Dudhat and Mario Paladini proudly present the Startup Jobs Fair, an HR event to bring professional and grown startups together with talents who like to gain experience beyond what is possible in a corporate. Those talents who are looking forward to take the challenge to work as a part of a startup team.

The event will take place in Berlin from the 29th of June to the 1st of July. But unlike other HR events, Startup Jobs Fair does not a classical event in an exhibition hall with HR managers in suits behind a desk. It comes with a pre-party and an after beach party, to ensure a good and relaxed atmosphere for face to face conversations.

The event is great for meeting with recruiter’s face to face, networking with other corporations, increase brand awareness and an unique opportunity for job seekers to make personal connections. Tickets can be ordered here and with the discount code: startupradio20 you will get 20% off.

image credit: startupjobsfair.org

Startup News – February and March

Before we start Christian is talking about the taxi medallions in New York, once considered a fancy and lucrative investment. Now they are in a steady decent due to Uber, Lyft, and their competitors. This can also be taken as a sign of disruption of a traditional (taxi) market:

2011

Why taxi medallions cost $1 million – Reuters http://ow.ly/Aw7Z30aoYm4

2013

Taxi Medallions: Golden Investment on the Streets of New York – WSJ http://ow.ly/ysx230aoTX3

2016

NYC yellow cab medallion prices falling further – Business Insider Deutschland http://ow.ly/y7uy30aoTXc

 

Christians food for thought: Self-Driving Trucks Are Going to Hit Us Like a Human-Driven Truck http://ow.ly/3saJ30ap2pk

 

February

March

 Uber

Two Executives to Leave Uber, Adding to Departures – The New York Times http://ow.ly/fyOX30a5qoz

Morning Agenda: The Exodus From Uber Continues – The New York Times http://ow.ly/EOXf30a5qvG

In Video, Uber CEO Argues With Driver Over Falling Fares – Bloomberg http://ow.ly/HaZ230ap1dR

Growth vs. Profits: Uber’s Cash Burn Dilemma  http://buff.ly/2kbB8oL

 

SoundCloud

SoundCloud needs more money, or it may sell at a fire-sale price wrote Recode here http://ow.ly/kWg2309SWuj

Our story, we left SoundCloud pretty early on! http://www.gruenderszene.de/allgemein/soundcloud-bewertung-geruechte

[Background:]

Spotify, which would like to go public next year, says it has more than 50 million paid subscribers worldwide. Apple Music says it has more than 20 million paid subs.

SoundCloud’s stall has been out in the open for some time. Investors pegged its value at $700 million in 2014, and since then it has raised money twice — including last year’s $70 million Twitter investment — at the same valuation.

The service says it has 175 million monthly unique users, but it hasn’t updated that number since 2014, either.

 

Miito

The third biggest German Kickstarter ever is bankrupt. It was meant to become a great looking induction designer water boiler, but things didn’t work out. The “remaining money” shall be reimbursed, the founders said. How much of the 800.000 Euros collected still “remained”, was not publicly confirmed.

http://www.gruenderszene.de/allgemein/miito-kickstarter-insolvenz

 

Marguerite talks about the Single European Payment Area (SEPA), learn more here: https://en.wikipedia.org/wiki/Single_Euro_Payments_Area

 

SXSW-Wrapup

German startup Holoplot wins SXSW Interactive Innovation Award in the category Music and Audio. They build advanced sound walls that allow focused sounds in a train station e.g., coming out of a wall with more than a thousand sound units, specifically aiming at passers-by.

http://www.gruenderszene.de/allgemein/berliner-startup-holoplot-sxsw

 

Horse Analytics, offering a wearable for horses, made it into the finals of the SXSW Accelerator pitches. “Your horse in your pocket” is their claim.

https://www.horse-analytics.com/

 

Lamp Startup lampenwelt.de gets an additional 120 million Euro in funding. A true hidden champion.

http://www.gruenderszene.de/allgemein/hidden-champion-lampenwelt-120-millionen

 

BaFin said to be close to handing insurance license to Berlin-based fintech incubator FinLeap http://ow.ly/lqC930a48UM

 

Rocket Corner

“Der Fall Ikarus”

German media continue their critical takes on Rocket Internet. This time, it was the weekly Wirtschafts Woche which came up with an analysis about Oliver Samwer and the ongoing crises at Rocket. Summary: “No plan, no profits, no new ideas: Oliver Samwers Startup Manufactory runs in crisis mode. Will Delivery Hero and Hello Fresh offer the chance of a turnaround? Confidential Documents raise concerns.”

http://www.wiwo.de/my/unternehmen/it/rocket-internet-der-fall-ikarus/19523396.html?ticket=ST-912737-v7KgFRELSyJWzaWY5fJm-ap2

 

Frankfurt:

 

Clark.de, one of Bloomberg’s 50 most promising startups

These Are the 50 Most Promising Startups You’ve Never Heard Of said Bloomberg in March 2017. Now we want to change that for one of these startups! Clark.de an InsurTech from Germany, headquartered in Frankfurt am Main.

Here is the interview (we did publish it in the meantime http://ow.ly/gfvm30apSQ8)

 

This is how the Fintech center TechQuartier tries to attract bank related startups.

http://www.gruenderszene.de/allgemein/tech-quartier-frankfurt-am-main-fintech-rhein-main

 

Frankfurt School of Management’s First startup night – March 16 – a big success!

 

Parcel service Hermes acquires majority stake in Frankfurt-based startup Liefery http://ow.ly/Xz2z30a4A5g

 

Stuart Cameron emailed us, the CEO of Uhlala – a company which supports, promotes and connects LGBTI people and women in leadership. With their Unicorns in Tech community, they are organizing Germany’s first LGBTI hackathon „Love to the Front” in Berlin on the 31st April. It’s hosted by Erasys.

More at http://unicornsintech.com/work/hackathon/ or at unicornsintech.com, then scroll down to events.

Housekeeping:

 

Also, do not miss Startup Radio in Berlin – covering and moderating the technology panel of the first International Cannabis Business Conference to be held in Germany after legalization.

 

Brief Introduction by Marguerite to Cannabis Startup world – including her coverage of the ICBC April 9-11 event – go to the website in the notes.

http://internationalcbc.com/icbc-berlin-2017-tickets/

October Startup News Germany

House Keeping:

Wohoooooo! The first recognition for our English podcast Startuprad.io. Lately, our German channel was doing well. Now the English one is picking up speed as well. We have been the only podcast from Germany listed in EU-Startups.com’s list of “14 entrepreneurship podcasts worth listening to” http://ow.ly/2pI1305Jbe1

Roadtrip Interviews and Event Highlights from Bits & Pretzels 2016 – Part I – startuprad.io http://ow.ly/uNKZ305CNTG

myLike – Get Inspired By People You Trust – startuprad.io http://ow.ly/dkle305CNXL

We had the first English version of our format www.startupcouch.tv last week. We had a live discussion, which we streamed in YouTube and Periscope. We discussed Robo Advisory with founders, bankers and consultants and more than 100 live guests with our friends from the Fintech Meetup Frankfurt.

You can see the recording of our Robo Advisor discussion live from Frankfurt here on YouTube https://www.youtube.com/watch?v=akCaXmFfgMQ

 

Ecosystem

German Startup Monitor:

Newest Survey of startups in Germany: 23% receive external financing like venture capital or credit http://ow.ly/5u4W305kNu0

Approx. 9% of responding startups are headquartered in Frankfurt and the surrounding RheinMain Area  http://ow.ly/MuFT305kNLF

 

Brexit and the uncertainty it causes … is are already hurting … FinTech startups in London writes Business Insider http://www.businessinsider.de/ceo-suade-diana-paredes-says-brexit-hurts-british-fintech-and-startups-2016-10?r=US&IR=T

 

European tech funding dropped 17% to 3.4 billion in Q3 2016 compared year on year. Also in the numbers are included Israel and Turkey. Notably, investments are down in two very important countries, namely Germany and UK. On the other hand, France was doing quite well. The decline of activity in the UK may be attributed to Brexit. In Germany Rocket Internet is not as active as they used to be https://t.co/blDXfneh1f

 

Hubs

Frankfurt

Our friends form Clark found that in Frankfurt there are more InsurTech and FinTech jobs offers, than in Berlin https://twitter.com/ClarkGermany/status/775716440787804161

 

We did attend the ceremony of German Accelerator Program, here in Frankfurt where the startups have been announced, which will be taken to the US (New York and the Valley) with the program. We will bring you interviews from there of course. Also there CEO Andy Goldstein from the German Accelerator said “Frankfurt is pretty much the center for FinTech startups in Germany” pic.twitter.com/ubyeZ5RAu1

 

FRANKFURT WOMEN IN FINTECH 

Frankfurt Women in Fintech has now had its second monthly meeting. The group has grown to 130 members since September. It was founded to help bring more women into the Fintech startup scene, as employees and founders. https://www.meetup.com/Frankfurt-Women-in-FinTech/

 

Berlin

Accelerator 500 Startups starts postseed mentoring program in Berlin reports German startup blog Gründerszene  https://t.co/UoHw3tWuyB https://t.co/aFeAE5DN20

 

Companies

Rocket Internet Corner

Rocket Internet’s cleaning service ZipJet acquires it’s London-based competitor Asteria Cleaners http://ow.ly/korA305J8AK

 

Rocket internet’s Wimdu and 9Flats merge to compete with airbnb – Let’s see if there is still “room” for them. Recently both have been under pressure lately since Airbnb is far ahead of them https://t.co/FFn1UTInK6

Related:

A pioneer room broker from Germany Gloveler (founded 2009), a kind of Airbnb or couch surfing – ends in insolvency https://t.co/P9zA617MRp

 

German authorities ask Tesla to stop using misleading Autopilot term in its ads. The response of Tesla remains unclear till now. Let’s see. We will keep you up to date https://t,co/vL47YBbmAY https://t,co/MtAOol8XbC

We discussed:

 

 

Many try to imitate Blue Apron. We found some ideas why they all (original and copy cats) seem to be a bit behind expectations: The “big problem [of Blue Apron] is that it’s some combination of three existing businesses, none of which are attractive.” ==> What does this mean for (German) copy cats? We are not sure, but will surely keep you up to date.  http://www.bloombergquint.com/business/2016/10/07/meal-delivery-startups-show-tech-disrupted

 

The Berlin-based Music Maker JAM is doing quite well, we found. They have now hits 1.5 million registered members and plan to hit 3 million by end of 2016 – Did you know this startup before? https://t.co/Xst0hKgRy4

 

Fintech is hot now in Germany:

 

  • German Startups Group invests in FinTech de. The new startup of ousted Kreditech founder Sebastian Diemer. The startup offers factoring solutions for freelancers, self-employed entrepreneurs as well as small and medium-sized enterprises. https://t.co/znCg0LB1iw
  • More FinTech: German FinTech Smava raises $34 million. Smava has been around for some almost 10 years now. It offers a credit comparison business https://t.co/mvAN66NI4Y
  • The deposit marketplace startup Raisin (which brokers bank deposits in Europe) has reached more than 1.7 bn € in invested volume https://t.co/Gv6A5JlVvT
  • Bad news for hyped Berlin based startup Cookies. It did not get the bridge financing it needed and therefore went into insolvency https://www.deutsche-startups.de/2016/10/27/cookies-insolvent/– A few days before co-founder Garry Krugljakow was ousted effective immediately, even though he was not in the company 6 weeks prior https://www.deutsche-startups.de/2016/10/25/cookies-krugljakow-muss-gehen/
  • Gründerszene has a long story on Michael Gastauer, founder FinTech WB21, which he wants to IPO in 2020. Now he claims a valuation of 2.2 bn US$. Now Gründerszene did its homework and found systematic fraud in the past of the founder, spanning London, Switzerland, Singapore and the British Virgin Islands. The swiss courts documents available to Gründerszene show illigeal gun ownership, a traffic accident with an injured police officer and fraud (involving his company G&S), for which he was sentenced to 18 month. He claims to have founded Apax Global Payment and sold it to a malayan company for 480 mn US$, where in the annual report of the acquirer no hint can be found. http://www.gruenderszene.de/allgemein/michael-gastauer-wb21-betrug-steuerhinterziehung-urteil-betrueger

 

In ecommerce in Germany there are depressing news for the locals. Since the Amazon platform is pulling ahead of it’s competition. According to the blog Netzoekonom Amazon generates in Germany 9.4 bn € in revenues, excluding the sales of its platform. With the platform it is even as high as 19.4 bn €. The closest local competitor Otto.de (a former catalogue retailer) is dragging along with 3.1 bn € in revenue, followed by Rocket Internet’s Zalando with 1.2 bn € https://t.co/8EoKPYxwK0

 

Crowdfunding insolvencies have been collected by Deutsche Startups. They include

Returbo – 1.088.050 Euro

Tollabox – 600.000 Euro

Vibewrite – 560.250 Euro

foodieSquare – 530.000 Euro

Paymey – 400.000 Euro

Twinkind – 350.000 Euro loss for the crowd and 500.000 for a business angel

Sommelier Privé – 300.000 Euro

Carzapp – 250.000 Euro

Lingoschools  – 155.744 Euro

fotovio – 148.640 Euro

https://www.deutsche-startups.de/2016/10/27/5-crowdinvesting-pleiten-die-richtig-weh-getan-haben/

 

5 notable Startup exits in Germany

* Heftig.co – Viral “news” and video portal bought by Funke Media Group

* InnoGames bought by Swedish company MTG

* Käuferportal (buyer portal) received investment from ProSieben Sat1 Media and General Atlantic, which in turn took over the majority

* Myhammer got acquired by US based HomeAdvisor

* Wimdu merged with 9flats, which could be interpreted as a takeover by 9flats. See above

https://www.deutsche-startups.de/2016/10/31/5-aktuelle-exits-die-jeder-mitbekommen-haben-sollte/

 

Stay ahead of the curve:

You Cannot Cut Your Way to Growth says the Red Rocket Ventures Blog, read more what it means for Growth Hacking https://t.co/nSh4cp0c4N

We found a report on Wholesale Transaction Banking, which is talking about leveraging Fin and Tech https://t.co/wKg1IDeel7

Our friends from EU-Startups write that Germany is getting serious about Alternative Finance http://ow.ly/kRMZ305J8Bq

Finally we found an Infographic on how the Industrial Internet of Things could change the world http://ow.ly/3T7h305J90x

 

Interview With The #Brexit Hedge For Startups, Fintechs And Investors, Joinmainland.com

In this interview Joe interviews Alex, who is the mind behind the #Brexit hedge for startups, fintechs and their investors www.joinmainland.com. The interview is done outside (link to pictures here) and therefore there is some noise in the background, we apologize for that. The area where both met in Offenbach just undergoes vast construction and will be a posh neighborhood pretty soon.

Alex wants to help #Brexit concerned startups and investors to open an office in this area (Offenbach or Frankfurt) and establish with it a Brexit #hedge. They can soon call up the office of the initiative and ask for help and advice to set up a small and cheap office in Offenbach or Frankfurt (each city opposite the other on the river Main).

The office space in Offenbach is new, high end and very cheap compared to London. You can learn more on the website www.joinmainland.com

Quick video explanation from the initiative.

Startup News from Germany – Summer wrap up

House Keeping:

This is the first news wrap up after the summer break. What we have been up to during the summer:

In German

  • We got for you an update on the billion dollar project of a startup campus. The project shall be called Silicon Valley of Europe and will be located in the vicinity of Frankfurt. We wait for the results of a land auction if the project will get the required area: https://www.startupradio.de/der-silicon-valley-of-europe-update/
  • We introduced our listeners to a short format “in nuce” (in brief), where we introduce our listeners to several event formats in short podcasts

In English:

Startupradio.de (our German channel) is once again listed as a need-to-know source for every entrepreneur in Germany: http://www.deutsche-startups.de/2016/08/25/5-podcasts-die-sich-jeder-gruender-anhoeren-sollte/

 

Ecosystem

Frankfurt and region making themselves heard in London http://ow.ly/O91p304CenE

Hubs

Frankfurt

Frankfurt turns into #Fintech city writes local newspaper Frankfurter Rundschau, listing 35 fintechs in the city center alone. Here is the map: https://twitter.com/GangolfSchrimpf/status/773044029323931648

Fintechs:

  • The robo advisor Ginmon raised “millions” from London based Passion Capital http://ow.ly/6gRG303uzjm
  • Frankfurt insurance startup Clark raises €13.2 million http://ow.ly/tgqI302Sbfn
  • Cloud Computing: Frankfurt is on the way to become the could computing center of Europe writes Wirtschaftswoche http://ow.ly/GV8v303uze6
  • From one of the first startup guys in Frankfurt, there is now the “Intro to the Frankfurt Tech scene” http://ow.ly/MuVs302S2k9
  • More signs of life: Relative to its population, Frankfurt is the most mentioned startup city in Germany on the Internet http://ow.ly/pIm6302nFsX

Financing for 42 ha (for americans 103 acres) innovation center & startup campus close to Frankfurt have been secured. We are waiting for the official results of the public bidding. This is associated with out interview mentioned above, but an article by Frankfurt based news paper Frankfurter Rundschau http://ow.ly/ZNGY303z8oD

 

Berlin

In Berlin, the flagship startups of Rocket Internet are not doing especially well, but this seems not to matter too much to the overall tech scene http://ow.ly/aWvz3041gCZ

Companies

Rocket Internet

Hit a rough patch in all of 2016 so far:

 

Tesla: A close Musk associate Antonio Gracias has been turned down by a bavarian battery producing sme called Sonnen, writes manager magazin. Tesla seem to have been interested taking a stake in the company http://ow.ly/XXtx3040Ln9

Here is the promised interview of Elon Musk by Y Combinator: How to Build the Future – YouTube http://ow.ly/r7Wr304CqpC

The story of Travador, they started out as a startup for travel flash sales. This did not work out, the did a pivot and developed their own booking platform for short and weekend trips. Now they are profitable http://ow.ly/TtAl304cd4E

 

Unister was a talking point all through summer. The company behind several B2C travel portals like abindenurlaub.de (like head for vacation) or flüge.de (flights) are owned by the company. The holding company itself is under receivership right now. The founder apparently wanted to avoid that and fell for a scam (so called rip deals), the founder Thomas Wagner getting a cash loan of several millions swiss francs in counterfeit money, in exchange for posting a collateral in real cash. Than to make havoc on the company absolute …. the private jet in which they transported back the money crashed and killed the jet’s crew and passengers (including Mr. Wagner) http://www.n-tv.de/wirtschaft/Unister-Chef-Wagner-ging-volles-Risiko-article18424011.html

 

Automated Vehicles / Automated Driving

“German OEMs retain their lead over US automakers when it comes to incorporating automated functions in mass produced vehicles.” writes Roland Berger in their newest research on automated vehicles

The US and Germany lead the field in terms of automated vehicle expertise.

https://www.rolandberger.com/en/Publications/pub_automated_vehicles_index_q3_2016.html

 

The Economist thiks there will be a starbucks effect in chocolate as well and is asking “Who will be the Starbucks of chocolate?” http://ow.ly/IqWD3033ZHx

 

Know-how for those with vision

Germany performing well in region innovation rankings, writes the European Commision in a publication http://ec.europa.eu/growth/node/1378_de

Peter Thiel at Stanford to Share Tips from his book “Zero to One” – YouTube http://ow.ly/BVAq302O1vC

Peter Thiel on the Global Economy, the State  Tech and Artificial Intelligence – YouTube http://ow.ly/4Cw6302O1Jg