Apr 28, 2021

Endeit pledges $301.9m in investments to internet startups

endeit
venturecapital
investment
Fintech
Joanna England
3 min
Endeit pledges $301.9m in investments to internet startups
The Dutch-German growth capital firm Endeit Capital has already invested over $300m in European B-stage internet scale-ups...

One of Europe’s first internet investors, Endeit Capital, has announced it will invest $301.9m in funding to boost digital maturity to Europe's technology scale-ups.

The company, which has been investing in the internet and digital commerce industry since 2006, has already helped build 35 successful businesses over the past 15 years through its Endeit Capital III Fund.  

According to reports, Endeit Capital has invested more than $300m over the past two decades in the Nordics, Benelux, Germany, Austria and Switzerland.

This latest funding drive has been launched to tackle a lack of later-stage venture capital in Europe because while European early-stage capital saw a record high in 2020, the European ecosystem historically has a lower supply of late-stage capital than other ecosystems. Currently no time-scale has been released regarding the funding drive.

Endeit Capital funding

The Endeit Capital III is supported by entrepreneurs, family offices, institutional investors and the partners of Endeit themselves. The investors subscribe to the central idea behind Endeit Capital III, which is to support those internet companies in Europe that help to foster and develop the innovation potential and digital maturity of Europe, versus global superpowers such as the US and China.

Since its inception, Endeit has had roots in Endemol, now one of the world’s largest and most successful providers of entertainment content. 

Both owners Hubert Deitmers and Martijn Hamann have been closely involved in growing Endemol out of a single European country to a publicly listed firm active in 23 countries worldwide. While at Endemol, they acquired and built more than 80 businesses and then sold Endemol for billions.

Endeit started its first fund aiming to apply lessons learned from Endemol, namely helping international entrepreneurs in media, technology and internet to efficiently scale and position their companies internationally both organically and via a structured Buy and Build strategy. 

To date, Endeit has invested heavily in 35 companies and 35 acquisitions. Many of them have been acquired by publicly quoted buyers across three continents, such as Time Warner, Xerox, Newscorp, Protolabs, Lightspeed, Macromill, TMG and Cimpress.

Successful portfolio management

News of the investment strategy follows on from the April 22nd announcement that Endeit Capital’s portfolio company Bux, Europe’s leading neo-broker, raised $80m to facilitate the company’s rapid expansion, and provide an ever-increasing number of young Europeans with the possibility to invest without commission.

Speaking about the latest funding announcement, founder and managing partner Hubert Deitmers, explained, “This financing round of Fund I II has been a huge success, where we could establish the fund within a short time frame in its ‘First and Final close’, despite COVID-19. It’s rewarding to see that ten entrepreneurs that Endeit had previously invested in are now investors themselves in this third fund.”

He continued, “Alongside our trusted network of partners, we have a real contribution to make. As fundamental shifts in technology happen, a spirit of invention and purpose is required – we support those internet entrepreneurs who can drive the change to make Europe more competitive and who have the ambition to become global market leaders”.

Deitmers said that the next generation of European internet companies will be accelerated by core technologies, like machine learning, AI and quantum computing. These are the technologies that will fundamentally change the world. 

“We are deeply convinced that we need to develop this knowledge within Europe and want to help ensure that European companies developing these technologies find the right environment in their home markets, rather than outside of Europe.”

He concluded, “There is huge potential in building European winners who scale globally, taking a massive share of the respective market. We have grown global market leaders out of Europe before. To foster this digital maturity, we see and seek the opportunity in funding and growing great teams in Europe that build global market leaders on these core technologies”

Share article

Jun 10, 2021

FIVE things fintechs must do to keep investors onboard

Fintech
Investment
venturecapital
AI
Brandon Rembe, CPO, Envestnet...
4 min
Fintech innovations drew in first-time investors who reshaped the markets. What new advancements will help them continue their rise?

New investors flocked to the stock market during the COVID-19 pandemic. Thirty-eight percent of investors said they had never had a brokerage or similar account before opening one in 2020.

Low or no-fee trading options have helped accelerate the trend – nearly half of new investors said they accessed their account primarily through a mobile app. As FinTechs, how do we create the trust needed to keep new investors in the market and create a fruitful customer experience for them?

The financial industry does a disservice to individual investors if we merely offer tools that focus on making money quickly, an approach that usually backfires. Instead, the surge of interest presents an enormous opportunity for those who want to help more consumers use financial technology to educate them on responsible spending, saving, and investing in order to achieve financial wellness current fintech tools have welcomed individual investors in the door.

Now, it’s time to focus on education and improving their experience going forward. There are several ways those of us in fintech can step up to shape the future of retail investing so that it works better for everyone, starting with the following areas.

Equal access to financial wellness education

Financial health should be available to everyone — but today, not everyone has the educational resources to achieve it. One study shows that only 3.9% of students from low-income schools were required to take a personal finance class. What they aren’t learning in school or from family members, fintech companies can provide on their platforms.

The companies should move from solely offering financial services to a more responsible model of education, advice, and prescriptive choices to help consumers develop better habits and make wiser financial decisions. Not only can they empower consumers and bridge historical wealth divides, but they can also stimulate growth by opening up new consumer segments.

More personalisation

Just as we’ve come to expect that our fitness routines are tailored to our individual bodies, we’re also ready for finance tools that go beyond one-size-fits-all solutions. But only six percent of financial institutions say they’re using the kind of technology that allows them to deliver a deeply personalized experience. Fintech tools need to reflect that financial success looks different for each of us.

For one consumer, it may mean providing guidance on how to pay off student loans early; for another, it may mean prescriptive actions that enable them to stick to a budget for the first time; for a third, it could look like prioritizing environmental, social and governance (ESG) investments, so that her portfolio aligns with her political beliefs.

Now, we are seeing financial technology beginning to meet the demands of personalized finance in a substantial and meaningful way.

The rise of AI-Powered Advice

Big-picture advice and predictive guidance used to be a feature of high-end financial advisory firms — a perk only available to those who could afford it. But thanks to rapid advancements in data analytics and artificial intelligence (AI), that kind of holistic advice is now more accessible than ever. AI-driven robo-advisors can parse many different streams of financial information, delivering customized answers to key questions: Is it time to buy a home, or is it smarter to keep renting? Can I afford to take out another student loan?

Intelligent connectivity powered by AI can anticipate consumers’ needs and next steps, making proactive suggestions that guide them along the path to financial wellbeing. Fintech companies can also help consumers identify when their financial picture becomes too complex for a robo-advisor, and help them find a human financial advisor to meet their needs. 

Focus on financial mental health

New investors are quickly finding that the market can be overwhelming. That’s not surprising, financial anxiety is common and studies show that financial stress can have an impact on mental health for some.

It’s not enough for fintech companies to give retail investors access; they also must provide the guidance and support that help consumers manage their financial well-being. Educational tools can ensure that consumers are well informed about their options.

Predictive analytics can anticipate consumers’ questions, serving them key information and insights before they ask. Features that emphasize a comprehensive notion of financial well-being, rather than short-term wins and losses, can also help ensure that consumers are keeping their eyes on the bigger picture.

Gamification for good

The surge of gamification apps has done an impressive job making investing as engaging as playing a video game or joining a social media platform.

Much of the current use of gamification emphasizes short-term thinking, but there’s also an opportunity to help consumers think more broadly about their overall financial picture. One example is peer benchmarking, a feature that enables help consumers to see how their financial habits compare to those of friends and fellow consumers.

Gamification can also be used to incentivize making smaller, smarter choices — for example, rewarding saving over making an impulse buy.

The future of fintech is about more than just broadening access to the markets. It’s about making sure more individuals have access to the tools that can help improve their financial well-being—in the ways that suit their own circumstances and needs. The potential to act within their own set of individual priorities, with their long-term financial wellness in mind is much more empowering to a consumer than simply relying on short-term, high-risk investments.

Share article