Deutsche Börse Group said that its new dedicated fintech venture fund DB1 is seeking to make investments in 2017, focusing on blockchain startups and other companies that use technologies like machine learning to rebuild the rails on which financial markets are built.
In an interview with Ankur Kamalia, Managing Director, DB1 Ventures and Group Venture Portfolio Management, he stated that by setting up DB1 ventures, Deutsche Börse is planning to build and operate a bigger ecosystem, adding new products and partnerships by collaborating with fintechs. He added that this will increase the group’s technology and revenue footprint as well.
“We invest in technologies which are helping rebuild the rails on which financial markets are built, such as blockchain, security solutions, API technologies, cloud computing, machine learning and artificial intelligence,” he stated. “We look to participate in relevant capital market applications, built on these state-of-the-art rails. Our immediate focus is the data business and we are looking at new opportunities and companies within that space.”
Ankur mentioned that DB1 looked into more than 250 investment opportunities last year, before carefully selecting and investing in few companies including distributed ledger or blockchain outfit Digital Asset Holdings; API specialist figo; a joint venture with the Naga Group, among others.
Deutsche Börse is looking to make anywhere from three to five new investments a year, each between €5–15 million. According to Ankur, the group’s goal is to find investments that fit our strategic plan.
“The returns come from strategic goals we achieve and from a direct return on investment or through revenue opportunities with partner companies,” he added.
