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Dear Fintechs, what are you doing now with all the money?

Whether Wefox (110 million euros), World Savings (100 million euros), Finleap (41 million euros) or N26 (260 million euros): Germany’s fintechs found how crazy. But while the rounds of financing are as such medially rolled out (of course, and especially here here), another question is often too short: What exactly do the startups now actually with the many money? Is it in the consolidation (see: The merger of Finreach and Figo under the roof of Finleap)? Does it flow in infrastructure (see: The assumption of the MHB bank by Weltsparen)? Does it flow into customer portfolios (see: Clark’s acquisition of two offline insurance brokers)? Or does it flow textbook-like into new employees, more marketing and international expansion? “Finanz-Szene.de” has looked at a dozen cases concretely – and comes to the conclusion: A clear pattern, it seems surprisingly not to give. Here are the analyzed cases in detail:

Clark (24 million euros, April 2018):

The online broker Clark claims to have already more than 150,000 customers (= broker mandates) – a little help, but can not hurt anyway. And so the Frankfurt Fintech went with the millions of dollars recently just in the offline world on a shopping spree. First, the insurance broker Malburg GmbH was taken over, then the brokerage business of the Schneider-Golling Group. About the respective purchase price, the participants were silent – who on “seven-digit” types, but is probably not completely wrong. In addition, Clark obviously also invests in the B2B business: According to the “Börsen-Zeitung”, the Hesse builds the “digital insurance manager” of the savings banks; Last week it was also announced that the cooperative R + V insurance is based on their online broker on the technology of Clark.

Deposit Solutions (50-60 million euros, August 2018)

The Hamburg deposit intermediary uses the mega-funding from last summer to classic regional expansion. Thus, the Hanseatic League (previously active only in Germany, Austria and the Netherlands) launched their B2C offer in Switzerland in January – a market in which CEO Tim Sievers calculates great opportunities due to a high savings rate and at the same time relatively low competition , In addition, at least two additional stores are to be opened this year.

Finleap (41 million euros, November 2018)

The Berlin-based fintech incubator initially invests in the existing portfolio, more precisely: in the former account-switching service provider Finreach. The should be merged with the Hamburg API specialist Figo and expanded into an open banking platform. The necessary capital increase, allegedly in the high single-digit millions, comes from Finleap itself. In addition, it can be heard from the environment of the company builder that the next fintech venture will be launched soon (possibly in the first half of the year).

Liqid (33 million euros, September 2019)

The Berliner Robo-Advisor (who is better known as the “digital asset manager”) is looking forward to expansion after the lush round of financing last autumn. Liqid wants to start in Austria and Switzerland in the next few months, Spain and Italy are to follow soon. In addition, fintech, which was founded in 2016, invests noticeably in the team, which is set to increase from the current 50 to 80 heads in the near future. Most prominent personality: According to information from “Finanz-Szene.de” the former European CEO of the discount portal Priceline, Dennis Malamatinas, will become the new chairman of the supervisory board of Liqid. Last point: The startup wants to expand its product portfolio. Although the Berliners are not yet revealing details, the offer should be closer to that of a classic private bank.

Mambu (30 million euros, February 2019)

Not enough, that we do not understand what exactly Mambu does (except: something with cloud-based core banking applications …) – we have no idea what the Berlin B2B fintech with the 30 million euros intends the recent round of financing allegedly flushed into the coffers. And what makes matters worse: As the only financial startup out there, Mambu has not the slightest interest in communicating with us, which on the one hand we find quite casual, on the other hand, a little stupid. And now? The official statement, which was aired on the occasion of the recent round of financing, says Mambu wants to invest “in the team” and “in the product”. Well, if that is not original!

N26 (260 million euros, January 2019)

On the product side was not much new (or: a product, namely “N26 Invest”, was even discontinued). Instead, the Berlin smartphone bank, with its meanwhile 2.5 million customers, is doing its utmost to grow even faster than it already does. How it works? Of course with advertising (on TV, in the subway, everywhere). And of course with international expansion. In the UK, the Berliners are now live, the launch in the US is to follow soon (and he should be longer), and the next big market, the N26 wants to go ahead, is called: Brazil. The fact that the money costs, is clear: 2017, the annual net loss after research by “Finanz-Szene.de” and “founder scene” at 32 million euros, 2018 it should even have been significantly more. Where are not Peanuts in the light of the recent round of financing?

Raisin (100 million euros, February 2019)

The Berlin deposit intermediary, known in this country as “World Savings”, announced during its funding round that it intends to expand into two other European countries this year. Together with Germany, Austria, the Netherlands, Spain, France and Great Britain, fintech, founded in 2013, would already be active in eight European countries. In addition, Raisin continues to refine the product range. So in the investment area, the next major launch imminent imminent. And otherwise? The Berlin caused recently with the acquisition of its own Whitelabel Bank for attention. As a result, Raisin now has an EU-wide banking license, which significantly simplifies further regional expansion from a regulatory perspective.

Smava (30-40 million euros, January 2018)

The Berlin-based credit comparison portal is aiming for the stock market – and looks pretty appropriate at the moment. “Finanz-Szene.de” are unpublished Nielsen figures, according to which the gross TV advertising spending of Smava in the first two months of this year amounted to about 5.8 million euros – almost Check24 dimensions (the Munich giant came the According to the Nielsen table, in the lending area over the same period to 6.7 million euros). To classify: A year ago, Smava had in January / February, according to Nielsen just gross donations amounting to 3.0 million euros.

Solarisbank (57 million euros, March 2018)

The Berlin-based Whitelabel-Bank is constantly recruiting new employees (220 in the meantime, compared to 130 at the same time a year ago) and expanding its product portfolio. Since the big funding, the digital SME credit, the digital business customer KYC and the blockchain factory have been launched (of course, a factory is not a product, but the factory is supposed to produce more products – sorry for the unfortunate wording). Rather unusual: Solarisbank used a (small) part of its financing to directly invest in another fintech, namely securitization specialist Crosslend. Meanwhile, the Asian plans are on hold. Europe first, is now the motto.

Scalable Capital (€ 30 million, July 2017)

Small steps instead of big plans. Scalable Capital is in the B2C business contrary to some expectations on the German market (okay, there is also a bit of UK) – probably because it is much cheaper than domestic top dog to win new customers, as this foreign Attacker would be. The thick funding of yesteryear? Flows well in marketing and employees. By now Scalable has around 95 employees and is expected to be 120 by the end of the year. What do they do? Among other things diligently connect new Whitelabel partners, for example, in this country, the Targobank or in Spain, the Santander subsidiary “Openbank”.

Wefox (110 million euros, March 2019)

The “big round of financing” by Wefox was the running gag of the year in 2018: Often reported – never completed. When one almost did not believe in it, the German-Swiss Insurtech announced at the beginning of March but still a funding of a remarkable 110 million euros. And now? A popular industry rumor has been running for months, Wefox is interested in the all-finance broker pool funds finance. If there is something in it? We do not know! That’s why we prefer to rely on the official statements, what Wefox plans with the money: The insurance startup active in the DACH region, Italy and Spain, is aiming for further European countries, and also wants to expand into Japan and China.


Also published on Medium.

Published inFintech

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