Stockholm FinTech

The Presentation inside:

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Stockholm FinTech An overview of the FinTech industry in the greater Stockholm Region Robin Teigland Stockholm School of Economics [email protected] @RobinTeigland September 2015

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Banking is essential, but banks are not. Bill Gates

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In just the past few years in Stockholm…

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High concentration of FinTech companies around downtown Stockholm

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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

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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 2014 FinTech investment in Stockholm is 32% total investment in Sweden But Stockholm FinTech workers only ~0.05% of Sweden’s population

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”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

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International investors noticing Stockholm Where do investors come from? Annual investment numbers for Stockholm FinTech companies

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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

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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

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Major actors running incubators “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

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Betting on the Blockchain - Together Goldman Sachs, JPMorgan, Credit Suisse, Barclays, Commonwealth Bank of Australia, State Street, RBS, BBVA, UBS +

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Opening up innovation… Citigroup Capital One BBVA Compass Silicon Valley Bank Bank of America

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IBM + Samsung

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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:

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Robin Teigland [email protected] @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!!!!!

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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

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Consistent exits

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Segments Cryptocurrency: Bitjoin, ChromaWay, Cryex, KnCMiner, Safello Innovative Lending: Consector, Crowdculture, Emric AB, FundedByMe, kortio,, lendify, Lendo AB, Myloan (owned by Insplanet), qvido, Toborrow, Trustbuddy Other FinTech: Algorithmica, BehavioSec, Bimamobile (Milvik AB), Bolanegruppen (Our Interest AB), Mopper, ORC Group/Orc Software, Pantor, Tbricks, TriOptima, Zenconomy, Trema Transfers: Seamless Distribution, Swish (GetSwish AB)

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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