German stock exchange operator Deutsche Börse is targeting the fast-growing fintech industry with a new corporate venture capital platform.
DB1 Ventures will manage the existing minority holdings of the securities trading group as well as look for new investment opportunities.
Primary target will be early to growth stage fintech firms only in sectors which are strategic to Deutsche Börse, the group said.
CEO Carsten Kengeter commented, “Our objective with DB1 Ventures is to continue to be active in investing in early to growth stage ventures which are core or adjacent to our client, product, geographic and technology strategy.
“And as part of our active management, we will also deepen and extend promising partnerships with some of our current portfolio companies.”
Ankur Kamalia, managing director at Deutsche Börse and head of venture portfolio management and responsible for DB1 Ventures, added, “This dual approach will allow us to bring in our professional expertise as a market infrastructure provider and offer value creation opportunities for fintech companies.
“In return, we will benefit from new ideas and technological developments in an early stage. Simultaneously, we continue to actively manage our existing portfolio of investments, including divestments where necessary.”
The new initiative has been prompted by research Deutsche Börse has undertaken with financial technology research and advisory firm Celent. The new Future of Fintech in Capital Markets report highlights the significance of strategic partnerships between market infrastructure providers and fintech firms.
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