Housekeeping

We have a new interview online with Dr. Yassin Hankir. He is a former management consultant, former co-founder of one of the first roboadvisors in Germany and he is now the co-host of the Fintech Meetup in and around Frankfurt, as well as co-founder of savedroid. Savedroid is an app, which helps its users with an AI to save money. He and the company are looking to close a Series-A round towards the end of the year: https://www.startuprad.io//interviews/frankfurtfintech-interview-yassin-founder-ai-savings-app-savedroid/

Eco System

none today

Hubs

Frankfurt / Rhein Main

The Africa focused fintech awamo raised 2 mn Euros http://ow.ly/mqRl30cwahV. This is great since we talked to them at a very early stage (Interview in German) in February 2015. At this time they were still called BCB Biometric Credit Bureau. The cool thing is they provide software and hardware to enable a micro lending agency (something like one person in a hut) to have all digital accounting. They offer a tablet, a software and fingerprint scanners to make the agency faster and in doing so the credit flow as well.

 

The German newspaper Welt am Sonntag published a research report that the Brexit will generate up to 5000 new jobs in Frankfurt. So Frankfurt appears to be No 1 profiteer from Brexit … according to the study. We found a secondary source in Focus magazine http://buff.ly/2tcrM3k Let’s see if the fintechs will follow.

 

The legal tech company Firma.de raised a six digit amount as seed investment reports Gründerszene. The website is designed to make it easy for an entrepreneur to set up their legal entity http://ow.ly/7zzF30cV6Ra

 

IPO and food are the topics of this news podcast. Today is the 27th of June and also today Bonn (close to Frankfurt, relatively speaking) based Pizza-and-Pasta-Juggernaut Vapiano has successfully IPOed in Frankfurt. Shares were offered for 23 € and during the first trading day were hovering around that level … raising 185 mn Euros (207 mn US$) in the process, of which 85 mn Euros will go to Vapiano itself http://ow.ly/IzYK30cVur6

 

Companies

 

Follow-up on earlier news wrap-ups:

In March 2015 we did report Redcoon the online subsidiary of German electronics retail giant (MediaSaturn … say the Radioshack of Germany) was going for 2bn in revenue. Now we learned that MediaSaturn is doing everything to undo the 2011 purchase of this online only store Redcoon. Reportedly MediaSaturn paid 125 mn Euros in 2011. They filed a lawsuit for damages and want to reverse the whole transaction. It is almost impossible to reverse this transaction after six years and several restructurings, but it appear MediaSaturn wants to get money out of this, maybe for its own separation from the larger retail Group Metro. The story broke with Lebensmittelzeitung (LZ)  http://ow.ly/dCwZ30cT4oy

 

Food, IPO and delivery are the big topics in the global startup world right now. Just look at some of the news, we put together:

 

The Rocket Internet Corner holds the big news for today. We are recording this 3 days before the IPO of their unicorn Delivery Hero is expected.

Delivery Hero targets nearly €1bn in IPO, valuing it at €4.4bn – FT http://ow.ly/cEUm30cV7Ct

Delivery Hero Seeks $4.9 Billion Valuation as #IPO Price Set – Bloomberg http://buff.ly/2twwpCs ⇒ Here is also a video included with a discussion on many of the well-known startups in the area like Instacart

Related: Blue Apron is also on the way to an IPO, but for a valuation of 3.2bn USD and is going for 510 mn USD in their listing https://www.bloomberg.com/news/articles/2017-06-19/blue-apron-to-sell-as-much-as-587-million-in-stock-in-ipo

IPO Could Make Or Break Delivery Hero In Race Against Uber, Amazon http://ow.ly/bKro30cPzwh

 

Everybody is now a platform in Germany. A newcomer to the trend is German retail giant REWE, which has a strong focus on groceries. Let’s see how they hold up against AmazonFresh and the other pure online players http://ow.ly/RfJi30cLUHg

Related: AmazonFresh expected to generate 11 mio Euro revenue in Germany 2017, 90 mn forecasted for 2020 writes NGIN Food http://ow.ly/Httx30cHmzY

 

The elephant in the room, the takeover of Whole Foods by Amazon. Just one article: A great analysis by the Washington Post (keep in mind, the WaPo is owned by Jeff Bezos) “Drone-delivered kale, and 5 more things we might see at an Amazon-owned Whole Foods http://ow.ly/9GFV30cI4bo

  1. No more lines ⇒ With the Amazon Go app, customers can just walk out of the store
  2. Delivery by drone // Tech surprises
  3. Amazon integration for everything (think Amazon Dash, Alexa ordering, ordering by smart appliances like the fridge …)
  4. Lower prices
  5. Amazon-owned restaurants, they already do Restaurant Delivery

⇒ and here we do the full circle to the Delivery Hero IPO.

As you can see: Amazon is bringing a new dimension to all of this. Now one does not only need to be a platform to sell food. The CEOs need to think of drones and other fancy toys as well.

Related: Why Amazon’s Acquisition of Whole Foods Matters for Startupland http://ow.ly/H5sd30cQhk7  writes Tomasz Tunguz, who is VC at Redpoint Capital

“the most interesting part of this acquisition is that it marks the current apotheosis of technology’s impact in the broader economy”

Startups have all been acquired before by household names (e.g. Walmart, Unilever, GM, Ford), but now this has changed.

“Amazon’s acquisition of Whole Foods could be the first of several major transactions in which leading technology companies redefine traditional industries by leveraging their near-infinite balance sheets and injecting rapidly advancing technologies or unique distribution that incumbents simply can’t match.”

 

Contorion is an online marketplace for tools – think everything from a hammer to cement mixer. After only three years they are acquired by established SME Hoffmann SE for 130 mn € writes manager magazin. Hoffmann SE is an established SME, which had 2016 a revenue of 1.1 bn Euros (1.23 bn US$)

Only downside: The three founders (two former McKinsey consultants and a former manager of CityDeal) only own 14% of the company, at the time of the exit http://ow.ly/27hu30cTP5Q

 

Blackrock invests 30 million Euro in Munich-based roboadvisor Scalable Capital reports Gründerszene http://ow.ly/drAd30cJq0D

 

Established insurer Debeka invests 10 mn Euro for 10% stake in insurtech ottonova valuing it 100 mn http://ow.ly/Ci6q30cJqk9

 

We found an interesting story about BMW i Ventures by Manager Magazin. They did some digging and found where the venture arm of the famous car manufacturer is invested http://ow.ly/qrGI30cTiHX  

1. eMobility

Proterra, the US-based producer of electro busses. US-based Chargepoint, as well as UK-based Chargemaster.

2. Mobility services

e.g. the apps Scoop, Moovit (even though the app provides public mass transportation information) or the company ridecell (car and ride sharing platform). Also Justpark, bus.com or the car rental via an app, US-based Skurt.

3. Online communities

e.g. Rever for motor cyclists or Life360, which offer real-time tracking of the location of all participating family members.

4. AI and security

e.g. Zendrive or Nauto (an AI which assists the driver by analyzing video camera feed in the car and gives you real-time warnings)

5. New methods of production

e.g. DesktopMetal which prints 3d metal parts and Carbon, which wants to accelerate 3d printing with photochemistry

They also report that BMW i Ventures only invests in 15 out of 1.000 firms who contact them.

 

Competitions and events

 

before we get together again, there will be:

 

Frankfurt School Innovation Contest – Maintech Startup Summit. See https://www.maintech-startup-summit.com/. They are looking for innovative business plans in Fintech, regtech, law tech and a few others. Open to FS alumni and students. Cash prizes (starting at 4K for first place) given.

 

the Startup Safary in Frankfurt / Rhein-Main on the 27th of September http://startupsafary.com/event/startup-safary-frankfurt-rhein-main/

 

Summer Break is coming!

This was the last news wrap up before the summer break. We do have enough material to keep you listening during the hot summer month, but they are all recorded already. We will get together again toward the end of September and provide you with news wrap-ups from again!

 

Looking forward to it and happy 4th of July to our US listeners (approx 50% of our listeners are from the US as of now)

 

Joern’s find

What Napoleon’s hat tells us about the power of branding | Christie’s http://ow.ly/7wVZ30chJeR

 

Stay ahead of the curve

 

“What Martin Luther did to the Catholic church needs to be done to business gurus” http://buff.ly/2ss1Tbc

 

Some Lessons I Learned from the Dotcom Bubble for the Coming Crypto Bubble http://buff.ly/2rK4vBH

 

Blockchain Massively Simplified | Richie Etwaru | TEDxMorristown – YouTube http://ow.ly/DSzd30cTIBz

 

The Jeff Bezos Empire in One Giant Chart http://ow.ly/iDYi30cT5pK