ithuba finmill
TRANSCRIPT
Ithuba FinMill is a Vienna based FinTech company builder established by a team of entrepreneurs and
passionate finance professionals with the goal to transform ideas into successful businesses.
Ithuba FinMill
Austria’s First FinTech Company Builder
We seek close working relationships with our start-ups by providing co-working space, capital, access to
financial institutions at board room level, regulatory guidance, technological implementation and top talent.
WHY WE ARE WHO WE ARE…EMPOWERING FINTECH INNOVATION
PAGE 03
www.finmill.at
Ithuba Capital AG
Ithuba Capital is a technology driven investment and advisory firm focusing on the
financial industry. The team’s superior capital markets knowledge coupled with strong
quantitative analytical skills, a state-of-the-art systems infrastructure and broad
international network gives Ithuba Capital an edge in servicing financial institutions.
Ithuba Capital is licensed and supervised by the Austrian Financial Market Authority
(FMA).
Ithuba FinMill
Ithuba FinMill is the company builder and venture investment vehicle of Ithuba Capital AG.
Our focus is to co-develop B2B FinTech solution for the financial services industry. FinMill
seeks to take minority stakes in innovative FinTech start-ups and closely works with
entrepreneurs by providing capital markets expertise, company building experience and
access to its network of financial institutions. Together with Q Capital Ventures we provide
capital and support for future financing rounds.
Aquantec (Advanced Quantitative Technology)
In order to support financial institutions in effectively managing portfolios and
addressing evolving challenges in the aftermath of the financial crisis, we have co-
founded Aquantec and successfully developed Aquantec Ocean, a cross asset and cross
domain portfolio and risk management software.
>
>
>
CM INNOVATION IS NO LONGER OPTIONALEMPOWERING FINTECH INNOVATION
2006 2007 2008 2010 2011 2012 2013 20142009 2015
19%
4%
(-)13%
17%16%
10%9% 9%
8%6%
IBs ROE well below typical Cost of Equity
In an environment of growth where new incumbents threaten to take away
revenues and market shares from traditional players, the only path back to
acceptable ROE is to address structural costs.
>
2011 2012 2013 2014
Ø Investment baking cost to income
2015
77% 78% 76%80%
83%
Increasing pressure to reduce structural costs
Decreases in compensation, legal and structural costs were not nearly enough to offset the
weak revenue performance of the industry in the last couple of years. Huge costs associated
with maintaining disparate systems, legacy landscapes and manual processes must be
addressed.
>
Ø Investment baking ROE
Source: EY, Capital Markets: innovate the FinTech landscape
PAGE 05
www.finmill.at
ATTRACTIVE SPACE FOR INVESTORS AND FOUNDERSEMPOWERING FINTECH INNOVATION
PAGE 06
$ 3.67tn ~ 8000 $ 96bn
Global financial service revenue pool ‘15
CM revenues of $ 593bn represent 16% of overall
revenue pool. CM pool consists of asset management
and IBs, custodians, exchanges, venues, clearing-
houses and CM focused SPs.
35%42%
7%
16%
40%
6%
45%
10%
Total number of FinTechs in 1H 2016
Despite 16% share in overall revenue pool, only
10% of total number of FinTechs target this
segment.
Cum. equity funding ‘00 – 16’ (H1)
This effect is even more pronounced looking at
total VC funding. CM FinTechs only received 5%
of total FinTech funding since ‘00. Strong catch-
up potential relative to share of revenue pool of
to others.
43%
4%
47%
5%
Retail banking
CM ecosystem
Wealth management
Corporate banking
Source: BCG, FinTech in Capital Markets www.finmill.at
A COOPERATIVE APPROACH IS KEY TO SUCCESSEMPOWERING FINTECH INNOVATION
PAGE 07
1.8
3.13.4
4.5
7.16.7
1.5 1.7
2.9
5.35.7 5.6
Backed by VCs only Backed by the CM Industry
~ 7 years
~ 6 years
Seed
Round C
Round A
Round D
Round B
M&A
62
8
14
95
10
28
7
56
11
24
13
Ø size of funding round ($mln)
2010 2011 2012 2013 2014 2015 2016
Ø number of years to event
Backed by CM industry
Backed by VC only
FinTechs backed by the CM industry attract higher funding…
The presence of CM industry backers signals that the start-ups are high quality
companies with credible business models and good prospects. VCs tend to follow
strategic players in their investment allocation.
>
…and move faster to maturity
FinTechs supported by banks or other strategic players, such as exchanges, tend
to reach maturity faster and become more successful than those that are not
backed by such players.
>
Source: BCG, FinTech in Capital Markets www.finmill.at
FINMILL MISSION AND SCOPE EMPOWERING FINTECH INNOVATION
I
COMPANY BUILDING AT THE CORE
The level of engagement with our start-ups is very high. Founders
accepted to our program are being offered co-working space, capital,
access to financial institutions on board room level, regulatory guidance,
tech consulting and access to our human resources pool.
IICOOPERATIVE BUILDING MODEL
We develop our startups in a cooperative manner with established FIs in
order to leverage each others competitive advantage creating a win/win
situation for both parties.
IVSECONDARY FOCUS
Ithuba FinMill will monitor promising B2C concepts which overlap with
Ithuba’s in-house expertise in the fields of lending, trading, asset
management and real estate.
III
PRIMARY FOCUS
B2B solutions for the financial service industry | Our main focus lies on
CM FinTech solutions which solve complex front-, middle- and back office
problems as well as FI connected platforms increasing transparency and
efficiency in the underlying asset classes/markets.
PAGE 09
www.finmill.at
FINMILL FOCUS CM FINTECH VERTICLES
FRONT END
MID OFFICE
BACK END
Trading
Data management
Risk management
Business managementOnboarding
Client insight/analytics
Issuance, M&A
CRM
Research
Client servicing
Trade execution
Pre-trade analytics
Post-trade analytics
Business continuity management Cost transparency
IT
Security / anti-fraud
Identity & access management
Post-trade operations
Clearing & settlement
Treasury operations
Fees & invoicing
Reconciliation
Transaction reporting
Tax operations
Collateral & margin management
Custody & asset servicing
Credit, market and liquidity risk
Capital management
Enterprise risk management
Financial control
Product controlFinancial & reg. reporting
Market news and data
Reference data
Compliance
KYC
AML
Policy setting, monitoring, testing
PAGE 10
EMPOWERING FINTECH INNOVATION
www.finmill.at
KEY PILLARS OF THE BUILDING PROCESS
PAGE 11
1
3
4
2
5Regulation and set upResident ventures benefit from Ithuba Capital’s existing licenses,
experience in regulatory matters and operation excellence
Cooperative modelProviding access to an extensive network of FIs on board room level
and facilitating cooperative models (e.g. JV, equity investment,
knowledge exchange, proof of concept etc.) between start-ups and
FIs
Product development Mentorship and support for founders in discovery and
validation stage to test fundamental hypothesis about
product and strategy – Pivoting and development of
underlying concept through internal and external feedback
loops Tech consulting and implementation Setup of technical and functional requirements for the product -
Consultation and support throughout the entire development cycle
from initial specs to deployable versions of the softwareCapital and venture activityInvestment of up to EUR 2 million in resident ventures after
successfully advancing beyond discovery and validation
phase - Continued funding support throughout future
financing rounds to optimize valuation and shareholder
structure/quality
EMPOWERING FINTECH INNOVATION
www.finmill.at
INCUBATION AND BUILDING PROCESSEMPOWERING FINTECH INNOVATION
PAGE 12
Screening & Scouting Discovery & Validation Efficiency and Scale Profit Maximization Renewal or Decline
Collaboration with
consultancy networks, FIs,
universities, start-up
community and marketing
Validation through network
of FIs, internal resources,
advisors/consultants
Commencement of
cooperative models with
established FIs
INVESTMENT COMMITTEE DECISION 1:
Admission to Ithuba FinMill co-working space and employment of internal resources
CONTINUED INVESTMENT COMMITTEE DECISIONS
Deployment of initial capital and continued funding rounds
WITH COOPERATION PARTNER
www.finmill.at
MANAGEMENT TEAM
PAGE 13
Willi Hemetsberger – Chairman > 30 years experience in investmentbanking. Former CEO ofCreditanstalt Investmentbank and Global Head of Markets atUniCredit Group, Board Member Bank Austria, founder of IthubaCapital AG
#strategic direction #idea generation #networks
Postgraduate degrees from Johns Hopkins University/Baltimoreand the Paul-Nitze-School of Advanced International Studies.
Peter Bichl – Co-Founder, Partner> 12 years experience in asset management, equity capital markets and venture capital.
#strategic direction #strategic management #business model dev #asset management #wealth management #equities #start-up investor #CAIA
Degree in Economics and International Business Administration, Chartered Alternative Investment Analyst.
Yahya Suna – Co-Founder, Partner> 13 years experience in private equity, investment banking and venture capital.
#strategic direction #strategic management #regulation #operations #legal #start up investor #private equity #asset management #finance #transaction structuring #emerging markets
Master degree in International Business Administration from the University of Vienna.
Miwa Blüml, Partner> 14 years experience in financial engineering, trading, risk management consultancy and software development, co-founder Aquantec
#software development #quantitative finance #risk analytics #derivatives #structured products #co-founder Aquantec
Master degree in International Business Administration from the University of Vienna.
Emanuel Schörnig, Partner> 14 years experience in capital markets and risk advisory. Currently head of portfolio advisory at Ithuba Capital AG
#strategic direction #structured credit #trading #derivatives #structured corr products #portfolio management #portfolio analysis #entrepreneur #start up investor
Degree in International Business Administration
Fritz Schweiger, Member IC> 25 years experience in investment banking. Sup’ board member C-Quadrat, former Head of Equities at UniCredit Group
#strategic direction #networks #capital venture activity #founder #start up investor #serial entrepreneur
Doctor’s degree in Law and MBA from the University of Innsbruck
EMPOWERING FINTECH INNOVATION
www.finmill.at
PAGE 14
ADVISORY BOARD AND PARTNERS
Roland Smertnig - AccentureDirector Global Sales for FS
Janos Koka - CellumFounder Cellum Global
Michael Fröhlich - CAPCOCEO Capco Germany & Austria
Thomas Mayer - IthubaChairman of sup’ board
Serge Ragotzky - PericapFounder Pericap
Ralf Kunzmann – aws GründerfondsManaging Director aws Gründerfonds
Michael Herscovici – Tuned VenturesFounder Tuned Ventures
Oliver Riedel – Baader BankMember of the board Baader Bank
ADVISORY BOARD PARTNERS
EMPOWERING FINTECH INNOVATION
www.finmill.at
FINMILL TIMELINE EMPOWERING FINTECH INNOVATION
PAGE 15
2017 Q1
2017Q2
2020Q2
2021Q2
2025Q2
Finalization of fundraisingSoft closing and commencement of active
screening and evaluation of targets
Start of de-investment phaseContinued funding for resident ventures but
no new investments in new FinTechs
Planned runtime endDe-investment of all assets.
End of investment phaseFocus on de-investment of all assets
Start of investment phaseFinal closing of vehicle and commencement of
investment phase
www.finmill.at
CONTACT USEMPOWERING FINTECH INNOVATION
www.websitename.com
Stallburggasse 41010 Vienna, Austria
Tel_+43 1 512 3883 - 0Fax_+43 1 512 3883 - 300
PAGE 16
DISCLAIMEREMPOWERING FINTECH INNOVATION
PAGE 18
This presentation has been prepared exclusively for the Recipient duly authorized by Ithuba Capital, is strictly confidential and may not be disclosed to third parties except for
Recipient's advisors which are subject to professional secrecy. This presentation is noncommittal and provided to Recipient for informational purposes only. It is not intended
to be, nor does it qualify as, nor is it related to any solicitation or offer or invitation to buy or sell financial instruments or to effect any transaction or to make any investment
decision. Each and any contractual or other legal relationship between Ithuba Capital and the Recipient requires and is subject to the execution of a specific written
engagement agreement as well as ancillary documents in line with the relevant regulations. Financial instruments mentioned in this presentation are not suitable for all
investors. This presentation assumes and relies on the Recipient's qualification as an eligible counterparty, and where not applicable, as a professional client within the
meaning of the security supervision laws. Investments generally, and derivative instruments in particular are subject to numerous risks, and an investor may lose all of its
investment and, under certain circumstances, even suffer unlimited losses. Past performance is not indicative for future performance of any financial instrument. Any decision
on the purchase or the subscription of any financial instruments cannot rely on this presentation, which does not constitute financial, tax or legal advice. The Recipient shall
consult its own independent advisers, including, but not limited to financial, legal and tax advisers. Neither Ithuba Capital, nor its managers, directors, partners or employees
nor one or more of its affiliates assume any liability or responsibility for damages of any kind incurred in connection with this presentation, any error and/or omissions
contained therein, and its use for any purpose.
www.finmill.at