This Month in GSA Startups - February 2022

ABOUT THIS EPISODE

Welcome to This Month in GSA Startups - meaning Germany, Austria and Switzerland, for February 2022 by Startuprad.io - in a news recording with Chris from New York City and me Joe, from Frankfurt am Main. This recording is sponsored by Invest-in-Hessen and Startupraven.com. It is in syndication with our very own station www.startup.radio, our partner station IBGR.Network and the Fundscene blog.

We recorded this new episode on Tuesday, February 22nd, 2022. Today we bring you everything from a new Switzerland-based unicorn to a new take on quick delivery - pardon the pun.

We start out with mega-deal in Gaming: ESL Gaming is sold for 1bn US$, Munich-based Fintechsystems is sold for 120 mn € and Aachen-based Next Ego may accomplish THE turnaround of the whole year, coming out of insolvency, they are looking to list via SPAC, valued at 1.5 bn €. Switzerland has a new unicorn, congratulations to Scandit, Gorillas wants to buy a french competitor and is thinking about a SPAC deal. Also, we have a large update on neobanks in Germany, and they are not all doing well.

Let's talk startups:

https://medium.com/@startuprad_io/this-month-in-gsa-startups-february-2022-44520c52b1eb 

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MM whine. Now that I have your attention, I want to welcome you to our podcast and introduce you to this episode of sponsor then no vest. You may know that I grew up on a Vinde yard, so I was very happy when when a West approached us with the cooperation they enable you to invest in fine why? You can do this to diversify your portfolio or simply to get to know great wines, since you can get your wine also delivered home to enjoy it, or you can do both. who learn more, use to link in the description below. Welcome to start up brand that I own, your podcast and Youtube blog covering the German startup scene with News, interviews and live events. Hello and welcome everybody. This is Joe from celebrated Oh again, joined by Chris from New York. Ha, Kris, how you doing? Hello from New York. I'm doing fine, of course, and why we've been talking through the news before the recording. We actually already heart the sirens, so you're off the hook for a Bagel today. By the way. Welcome to this month in GSA startups. We did a little rebranding, since we talking such a lot about Germany, as well as Switzerland and Austria together called GSA. So that's why we thought we had to adjust the title. This recording was done on February twenty second. February twenty two. Two Thousand and twenty two is not a great date. Two, two, to two, to two. Yes, of course. This recording is sponsored by invest in Hassan and start up ravencom. It is also in syndication with our own radio station, startup DOT radio, our partner station. I begr network, as well as the fun scene blog. We recorded this news...

...episode as set twenty two of February, and we bring you everything from Switzerland based Unicorn. Do you can count, by the way, to a new quick take on delivery. Pardon the HUND. We start out with a big ideal in chrissie shaking his head. You cannot see him right now. He already knows the news behind that. We start out with a makeadeal in gaming. ESL gaming is sold for one billion, you as dollar. They based in Cologne. Munich based FINTAX systems is sold for one hundred and twenty million euros, and AH BASED NEXT EGO may accomplish the turnaround of the whole year. They coming out of insolvency and looking to get listed with a spack deal at a valuation at approximately one point five billion euros. Switzerland has a new Unicorn Code, scandd gorillas wants to buy a French competitor and is thinking about a spack deal. Also, we have a large update on new banks in Germany for you, and they're not all doing well. Let's talk startups. As always, in our show notes you find an option to subscribe, and big thanks to our enablest. This show was made possible by Hassan trade and invest, with the brand invest in Hassan. You can learn more about them here. DUB DUB DUB invest minuts in Manus Hassancom. We also run a dedicated sub podcast with all interviews and news incorporation with them. Find them here in the show notes. And Start Up Ravencom the best way to identify investors and corporation partners for early in later stage startups. Sign up for early excess at start Operatingcom. Chris, you got some top news right. Yes,...

...definitely, and because one thing we were looking at in the past couple of weeks was the changes in the probably could say digital gaming industry. We had the huge activision deal and we also had a big here in the US and we also had a big deal in Germany and esports to be more precise. And their esl gaming company based in Colne, is sold for one billion US dollars to the savvy gaming group back by the Saudi swf. And Yeah, so kind of like to stay in the old state on fund, you could say, like the Shikes Fund. Yeah, and yeah, and it's an interesting story because, I mean ESL is one of these like hidden champions and they are the biggest in the world for esports gaming. And Yeah, so I'm it's going to be interesting to see how this whole ecosystem there is going to evolve, because I think it is one of the it is a really cash cow. But if you're not into esports yourself, it's really as if it doesn't exist, like it's one of these industries that, I don't know, like it's very hard to miss out on if if you're not into it yourself and it's not as visible as I don't know, if you don't care about cars, you still are confronted with cars every day. With esports it's a bit different. We also saw a takeover worth a hundred and twenty million euros, the Swedish tink by the Munique based FINTECH systems, which is an open banking service provider, for, as I said, a hundred and twenty million euros. And then we have the story that you already kind of hinted at, that there is an a car manufacturer in Ahon and western Germany who just got out of insolvency protection and whose idea it now is to set us,...

...to us back deal in the first half of two thousand twenty two and let's aim at one point five billion euros. And it's really interesting story because it also shows that right now numbers seem to be everywhere, all over the board, and especially if you're in a in an industry that comes with a lot of fantasy or potential, like electric cars still do. Apparently you can have the bravery or the self esteem to aim really high in the spirit of being a podcast for Germany, Switzerland and Austria, so for the all three big language, German language speaking countries in the middle of Europe. We also have a look at Switzerland, where we see that there is a new Unicorn called scandard. They raise a hundred and fifty million US dollars at a Unicorn value valuation, meaning they're worth more than one billion dollars. And the company provide scanner software, for example for Fedex, Car Fool, French supermarket chain, and the German drug store chain DM, like CBS in the US. We also have goodrill us in the news, one of those, like Trobora delivery grocery startups. They are also considering an SPAC IPO, according into George Startups, and they are set to acquire the French rapid delivery start up Frishty frisky. I don't know. It's BROUNS IT in French. We have news in the new bank section that are being done by a year on exactly. Thank you very much. I have to admit I also don't know how to pronounce this French Start Up, but I've never studied any French so I maybe...

...excuse. And Twenty six is in the news. Huh, what a surprise. We have some articles collected for you. The leadership team of and twenty six is still losing people. This Coo, Adrian Grumley, is leaving. They also intending to start, as they say, suon their crypto offering and they are rumored to use white label the service of bit panda. They also indirectly disclosed their revenue numbers of premium customers. Forty five percent of the revenues are premimer account fees, which leads to approximately three hundred Tho clients on average. The Berlin based new bank vivid raises one hundred million years in ventor capital from investors. But not all new banks are doing Bell Hamburg based New Bank remagine has to five insolvency. First they wanted to be a bank, bank for entrepreneurs, and then they pivoted to a Green Bank and apparently the investors did not buy in there also, there was some extensive there was an extensive article on the new broker unique corn trait to republic. Some interesting facts been revealed in this interview. Eighty four percent of the users are male. Forty seven percent of the users are new to the stock market, of which again, fifty percent our eighteen to twenty six years old. Of the total, seventy percent aim for long term investment, so not so not therefore trading in and out. Fifty six percent actually are not in for the thrill and in total, the users invest approximately sixty percent in equities. Twenty six percent in ets. In equities I mean directly owning shares in companies, and only two percent in the votives. The median return of the users has been seven point...

...one percent. This is from two thousand and nineteen to summer two thousand and twenty one. And I have another typical German story. Germany and telegram. The Ministry of Interior successfully established contact with Telegram Messenger Service and its leadership. Apparently someone in the ministry google successfully an email. As a reaction, telegram closes sixty four channels after pressure from the German government, including one off conspiracy theorist theorists, Attila Hilt Man. I think we talked about him in the past and he's not that important at all. Housekeeping. Time to Brag, guys. It is getting time to say thank you to our audience. Actually, we made a landing exactly at top four hundred, at number four hundred in charterbals global business podcast. Thank you for all our audience. There is also a little hint. Currently our website is doing pretty bad. It will soon be replaced and we are currently in the process of movement content to medium. Soon you will find all our show notes and blog posts on mediumcomas start up rates Io. Also, there is a hint at an event, the EU startup Sam it will take place may twelve, two thirteen in Barcelona, they say. At this exclusive in personally went, will be showcasing many of Europe's hardest startups and coming together to learn from some of the most successful European entrepreneurs of our time. There is a special twenty percent discount for our audience if you use one word or capital letters start up radio twenty note. If...

...you listen to this by one of our network partners, you're also, of course, able to use it. Chris, you got some news on the ecosystem, right. Yeah, so, yeah, moving on from like the little housekeeping section or bragging section the ecosystem. Take always taking a closer look at the different cities in Germany, and sorry, that is the hup section the ecosystem, taking a closer look at what is going on overall in the startup scene in Germany, and one thing we definitely see right now is that politics gets a lot more involved and becomes a lot more supportive financially, even for startups in Germany and Europe as a whole. So we had been talking about the ten billion startup program of the German Federal Government in an interview in Summer Two thousand and twenty one, and now we see that there are many, many new programs on the horizon. We have all the links in our show notes, but just to give you an idea, there is the European Tech Champions Initiative, which ones to spend more than ten billion euros on European startups. There is the Europe's chips act, to bake in up to two billion euros and funding for startups and scale ups. More about that at tech runch. Then there is the German Federal Finance Minister, Christian Lindner, from the pro business liberal will party, who sees prospective start off program of one billion euros, in which also the government invests in scale up. And then there is the European Commission, which adopts the European Investment Council. I see work program for two thousand and twenty two, which also unlocks an additional one point seven billion euros in funding. If you add it up, if all these programs go through, there will be a funding push of almost fourteen billion euros for European startup. So a lot of a lot of money is being...

...put into the market. We also see that a Hamburg based bright point capital, is in the process of raising Europe's largest privately mentioned umbrella venture capital fund. A goal is to get five hundred million euros. We see Cherry ventures from Berlin, who which raised a new crypto fund of thirty million euros after a three hundred million euro fund last month. So yeah, it also seems as if there's someone pretty busy raising funds from a piece the yeah F Venture Capital Survey for two thousand and twenty one. We have a link for that in our show notes. gives us additional insights about the VC ecosystem. And in terms of politics, we also see that the digital euro build you early two thousand and twenty three, will be due early two thousand and twenty three, as is written by Biaka Smith Maya at political this would be quite an acceleration compared with former timelines and shortened the whole process by a couple of years. And so yeah, so the whole topic of virtual currencies in the euro countries is being emphasized, you could say, and we also had some more sober news somber news. More than one third of Europe's top VC firms. I yet to hire a female partner. Get you at together. Moving on to hubs and the idea they're always being that there are many deserving startup city and entrepreneurs who will never get a lot of English coverage, and that's why we have the section to highlight many, many of the German interesting start up projects. We start in Frankfort and with you great thank you very much. Frankfurt seat funding of one point one million was just recently raised by hired,...

...spelled h. Why are the early career network Frankfurt, based in Tron enough? Specialist for Reef Times of Valence of production lines and warehouses is bought by Nastack, listed in Pison. The transaction was actually announced by them in early December, but we just found the release on the website with this month, I mean better light than ever. Write. Frankfort based operations one raises eleven point one million for its software that managers operations and connects workers. Frankfort based he laba, which is a bank called Hess Landers Bank, ministate of Hassan. They invest in Munich based impact, in the Munich based impact fund the European Investment Council, E. I see accelerator invest thirty million urs in three cream startups, including COT bioclean from Frankfort not. We'll have an interview with Coto bioclean coming up pretty soon in our corporation with investor Hassan. We will also have an interview that's already edited with Professor Philipsanna talking about stable coins and the digital euro. Plus, we already have an interview recorded with the political analyst talking about the new government of all the shots and their position on startups. Right now it's a little put political, little bit high level, but we'll do a follow up soon and of course they'll all be released pretty soon. Talk about my native city, minds via campbook group. It's an online retailer of wine. HMM. They made an exit two thousand and twenty one. The company that bought them went public and nowaday it was disclosed that was worth one hundred and twenty five million years. Dams do a little bit to...

...the south, two dams that wants to become a startup, and west with their programe Ip four shares, and it already started with a fusion energy start up. Let's talk a little bit more south, builed off sap BIS chaw lea and becomes a competitor of banks like Doutsche Bank and the last, sorry for me, in huts heidelback. KKR and other investors have channeled approximately eight hundred million years rule of THUMP, nine hundred million year as dollars in Unsa, formerly known as Heidel pay, a payment APP from Germany. But there is not a lot to hear and find out about them, but we'll keep track on them. Chris, you got some more news about other cities right? Yeah, definitely. In first some minor additions like two Damstad is actually a university which tries to start a start up investor, try to turn itself a bit into a startup investor. And then sap. I think a lot of people in business know it anyway because they have these insanely successful software but it's also considered one being like a real epitome of German of German business culture of the last couple of decade's, but at the same time being really big and blue chip ish. So it's really interesting, I think, to see institutions like these book more and more into the startup space and it all just goes to show that, I think overall, the German business sphere becomes, or even business and societal spheres become more and more comfortable in dealing with the startup world, you could say. So it's little signs everywhere. The Ra...

Ston in the eastern part of Germany, there is vander bought, which raised eighty four million in a series see funding its robotic software company making industry, Roberts, accessible for everyone. And we may add that it's eighty four million you as dollars. Oh, what did I do? I say something? NOPE, you didn't say any currency. Yeah, eighty four million sausages, as my math teacher in fifth grade always said. Eighty four million. What Christian? Eighty four million? What at the unit? So Munich. Moving on to Munich, marvel fusion gets thirty five million euros to accelerate the roll out of made in Europe clean energy. And then we have a company that wants to bring new work models into the world of customer services. They are called Hume Day, Yo, you, mm day. They landed thirty million euros for that. We have the health start up clean MEADO CIM e Dal, which picked up a five million euros funding boost. That's like a nice little amount. That sounds healthy for growth and, as we said, we are a podcast for other German language countries as well. Moving on to Austria and Switzerland. Is Your job. Why do you always surprise me like that? Christian, by the way, do you want to disclose the name of the teacher that a traumatize you so much in the fifth class? Hey, yeah, sure, I had been addict. Have Been Edict. Was that Mr Benedictia? HMM, talking about Austria here. Pretty Pretty hard cut right.

Austria go student, the tutoring Unicorn from Vienna by two companies, Seneca learning and t US media group, after buying Fox education already in September, two thousand and twenty one all to extend their product offering. And First Bird, one of Vienna's first h art tech startups, exits to US based company. There is some Switzerland News. Swiss based Russian Elon Musk builds a cargo drone with the speed of nineteenzero kilometers per our cordium for Chris. What is this in mis per hour? Such a throne would make transatlantic freight delivery much fast and cheaper, but could also have military applications. This is not a perfect example, since the drawn would need time to speed up and slow down. But if it would fly all time and maximum speed to drone could deliver pauses from Frankfurt to New York City in twenty minutes. That is that is fast right. That sounds dubious, but sure, I'm waiting. I'm waiting already what you're gonna Send Me. I'm also pretty confident it will not classify as green and sustainable transportation. Talking a little bit about the bigger guys, UBS Union Bank of Switzerland. They have roguet three hundred millions with francs in investment in Swiss startups so far, and then revival healthcare capital for one five capital and existing investors invest ninety million. You as dollars in you lose on Swiss based distal motion for the development of their robot. Certain let's do a little bit general news. Company section vintake. Today, apparently we're very heavily leaning towards you as a bank. But first CRYPTOCOM was for month aggressively marketing...

...to German clients, apparently without having the proper license. JP Morgan plans to enter for the first time retail banking in Germany with the robot advisor based on their recently a quiet NUTMAC platform and another US play, not a bank. After one and a half years than guard invest started the pilot face of its robot advisor based in Berlin, reports Germans start up blog. On February twenty two, they sent us an email that they are life now. So today they want to price the total offer at zero point eight percent fees, which is very low compared to others in asset management in Germany. And of course you can learn more in a German article combined with an interview from the German CEO. I would just like to add that thank God was the first company that made etfs popular, but they are in index funds popular, but they're not necessarily eats, so they're not traded on a stock exchange. You always have to deal directly with with vanguard all one of the people hired by them or companies. Chris, you got some very, very few selected fundraisings right. Yeah, just just some of the highlights. We see the for example, the private ECQUITY Fund Carlyle and paypal in best a hundred a million US dollars in the Germany based ECOMMERCE software company shop where we see that Berlin's made and a Y D gets paid thirty million euros in a series e round where lights in which lightspeed leads the parade. And we learned about the hot text start up at a health closing a series b round at over a hundred and five million euros to accelerate their growth. Kuzun no bringing in thirty million dollars...

...to digitize the construction industry. And we see that eight roads ventures, Pilton, peat and Kippeta capital, kingsway and Peko venture partners invest together with US astronaut Thomas Stafford in the mettech patient twenty one or former auto one manager and a hundred and ten million euros. And we see bi on tech and railway operator Deutsche Bahn investing a hundred million US dollars in a Tunisja based AI startup called in Stud deep some HR announcements. We found interesting binands snapped ETROCO for Germany and is now rumor to apply for a cryptocustody license in Germany. And we see that the former head of development for Audi and Volvo, pita mantens joint Munich based mobility start up deep drive and now coming to like your favorite joke of the show, which I don't know if I appreciate. But yeah, I'm also not strong enough to fight it. Go ahead, go ahead togetherness. or so. First, AMMO Relei was once a shooting star of the Berlin start up scene. They had a female cofounder who understood to make the online sex shop really classy. First they were sold to pause evens, that hinds, a TV station group in Germany, very active in the German startup scene. Then they were sold in October last year to Dutch e Qo and group. Now there is bad news. According to recent press report, approximately thirty percent of the head count will be cut by the new owner. And a new take on quick delivery. there. This is a new one. FINISH QUICK DELIVERY START UP WALT WO LT broadens its delivery to include sex...

...toys to be delivered within thirty five minutes in Hamburg. I found this pretty interesting. Thirty five minutes, that's some speed. Other News, birdcom, meaning not the company, nothing, it's just the UERL. Birdcom was sold for two P five mild in U as dollars. Message Bird actually outbit micromobility and company e Burt reports tech a. You crazy how much people spent on a simple url. And we have another interesting article. How sewee set e Wdi, Berlin's first black out travel agency, highlights pleck German history from Travel Noir Biotech building here and SAP cofounded. Did my hop digs deeper to back one of the drug developers in his portfolio, meaning he has been a building there before, but he's one of the very big and serious biotech investors here in Germany, including, for example, Que Vac. Then one more news for me. German deep tech Varka is on track to accelerate press cancer screening. Chris, you got some more news to close up the news today, right. Yeah, sure, we're nearly we nearly made it through, but I'll home. Twenty four surprises the markets with stagnating revenues and dumb it's forecast takeover of the brick and mortar retailer should be completed in the second quarter of two thousand and twenty two. And we have something about Tiger Global, which are normally head quartered here in New York City, but since there are a large investor in the German speaking startup scene, we thought that we'd also mentioned them. They raised eleven billion US dollars for a new venture fund, exceeding their target. Some more information can about that can also be found in our...

...shown notes linking to the information that is it. On the news front, to stay ahead of the curve, we have some an interesting article about following the money in the air taxi craze, which I don't know. It seems kind of like collateral damage of the pandemic for now and just seems as if it's not the right time for air taxis. But what do I know? It was always a pleasure talking to you. Have a good day and talk to you sooner by bout from New York. Thank you very much for listening. By thank you for staying with us to the end. We would like to thank the sponsor of this episode of winner vest. They enable you, with the global network master Somblis and quantitative models, to find an invest in the best wine. You can decide what to do with every single bottle, which also includes getting them deliver at home to enjoy it with friends and family. To learn more, just click the link into description below.

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