The Excellence Acceleration Program in Fintech sector · 2017-12-21 · Facebook and Apple) and...

© Digital Magics 2017 - All rights reserved www.digitalmagics.comSALONE DEI PAGAMENTI - MILANO , 24th NOVEMBER 2017

The Excellence Acceleration Program in Fintech sector


Program’s Objectives

• Create a center of excellence in Italy capable to accelerate and support Companies, within the Fintech and the Insurtech Industry, with the ambition to be among the best in the world.

• Targets will be digital companies developing scalable business models aiming to grow in markets bigger than 1B€ and the ambition to reach a > 100M€ exit.

Infrastructure & Enabling Technologies

Banking & Payments

Banking platform

Banking

Payments

Virtual Banking

Mobile Banking

Wallets

Payment Platform

Billing

Online Payments

Cards

POS Payments

InvoicingMoney/ Transfer

Investments

Personal Finance -Expense Related

Investment Platform

Asset Management

Real Estate Investment

Institutional Investment

Personal Finance -Investment

Financing

P2P Lending -Consumer

P2P Lending

Direct Lending

P2P -Business Lending

Direct Lending Business

Direct Lending Consumer

Real Estate Lending

Crowdfunding

Reward Based Crowdfunding

Donation Based

Crowdfunding

Equity Based Crowdfunding

Insurance

P&C Insurance Reinsurance

Insurance – Consumer Platform

Insurance Data

Insurance Infrastructure

Insurance ComparisonP2P Insurance

Health Insurance

Mobile/ Product

Insurance

API &Connectivity

4

Crypto Currencies

Compliance & Scoring Platform

FX Broker/ Trading

Security

Biometrics Authentication

Business Tools

Financial Software

ERP CRM PSA

HR Payroll Accounting

Blockchain & dApps

Data & Analytics

Risk Management

News/ Research

Algorithms Analytics/ BI

Real Estate Platform

What are we searching for?

Regulatory Tech

Loyalty & Merchant Services


Build the Future

• The Team Digital Magics supported by Mentors, Advisors and Partner Companies will follow the selected startups along the entire 5+1 months Acceleration Program

• The goal is to lead them at the end of the Program to: – Validate their Business Model – Go to Market– Meet metrics and shared KPIs

$28BFINTECHGLOBALFINANCING(2106**)

Source: *Towers Watson Securities, Willis Re and CB Insights (2016); **FTPartners: 2016 Annual Fintech Almanac; ***Dealroom.co (2017)

6

Fintech & Insurtech: Market Size and Opportunity

$1.4B INSURTECH TOTAL FINANCING (2016*)

$1.2B INSURTECH TOTAL FINANCING (Q1+Q2 2017)*

$13.1B FINTECH GLOBAL FINANCING (Q1+Q2 2017)**

SCALE 2X

SCALE 2X

$2.6B FINTECH EUROPEAN FINANCING (2016*)

$13M FINTECH ITALIAN FUNDING (2016***)

7

Disrupting the industry

There are three significativeways in which technology is currently impacting the insurance sector:

1

2

3

Insurance Distribution

Data & Analytics

Sales, Marketing & Engagement

2447

65

201420152016

1020

31

201420152016

611

27

201420152016INTERNET OF THINGS/

CONNECTED INSURANCE*

ARTIFICIAL INTELLIGENCE/INTELLIGENCE AUTOMATION*

ANALYTICS/BIG DATA*

NUMBER OF DEALS

Source: *Accenture: The rise of InsureTech (2017)

INSURTECH trends

FINTECH trends

31% 29%

17%9%4%

10%

Lending

Payments

Investments

Insurance

Capital Markets

Others

GLOBAL FINTECH INVESTMENTS

75%Lending, Payments and

Investments

• Engine & Algorithms• Advanced profiling• Human and robo

integration• Digital distribution strategy

Winning capabilities

Sources: *Accenture Research and Capital IQ data (March 2017);

8

Fintech: Market Size and Opportunity – Italy

• Future value of GAFA(Google, Amazon,Facebook and Apple) and Fintech isexpected to grow significantly

• Banks laggard in their digital transformationwill decrease their EV

49%40%

20%

-11%GAFA FinTech Bank Digital

LeadersBank Digital

Laggard

FUTURE GROWTH VALUE(as % of Enterprise Value*)

• Italy is at the 8° place($13M)

21

3

9%of global 2016

Investments were in Europe*

TOP 3 EU COUNTRIESInvestments in 2016 in ($bln)

INVESTMENTS IN GLOBAL STARTUPS BY VERTICAL (€B)

9

Insurtech is becoming an important growth driver in the Fintech sector

Source: Insurewills, Tower and Watson (2017), FTPartners (2017)

6.6 6.1

16.219.7

26.6

0.3 0.3

0.9

2.7

1.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2012 2013 2014 2015 2016

Insurtech

Fintech

41.47% CAGR(2012-2016)

€134B

SIZE* OF THE INSURANCE SECTOR

IN ITALY

Sources: *Pwc: The Italian Insurance Market (2016), measured in GWP, **CBINSIGHTS: Global Fintech Report 2017***

63%22%

14% 1%

6%

80%

14%

LIFE INSURANCE***

NON-LIFE INSURANCE***

€102B

10

Insurtech: Market Size and Opportunity – Italy

€32B 1 4

29

65

109

2012 2013 2014 2015 2016

# of PRIVATE TECH INVESTMENTS BY (RE)INSURERS**


• Activity developed by DM

• Call presentation

• Candidatures selection from a committee composed by DM and Partner Companies

• Acceleration contractsignature

• Cash and Grants

• Services from DM /Co-Working spaces

• Mentorship from Partner Companies

• Masterclass

• Investor Day

• Fund Raising

• Excercise Call by Company Partners

• (Possibly further servicesfrom DM)

Fund raising

4 + 1 Months 1 Month

Model

AccelerationDeal sourcing

Hyp: 100 deals 10 deals 6 deals

1 Month


Acceleration Program structure

PRODUCT01 TESTING02 REVENUE03

MONTHS 1-2 MONTHS 3 MONTHS 4 INVESTOR DAY

Product development, Market definition, Business model, Team, MVP

Product/Market fit, A/B Testing, Product and pricing optimization(Private Beta)

First metrics acquisition and revenues, KPI, pricing(Public Beta)

January February March April May

MONTHS 5

Selected startups continue the program and receive cash for

market test

04 VALIDATION08/6/2018

INVESTORS’ DAY

Validation metrics KPI, Team & Business Model. Do Business Plan and preparePitch for Investor Day


Advisors

• The Acceleration Program will be supportedby Advisors: experts in important fields ofthe business sector, who will help thestartups correct their mistakes and find amarket positioning.

• Tens of marketing and growth hackingexperts, platform and interface developers,legal and finance specialists, startups’ andfirms’ CEOs, managers and creative talents,will closely follow the selected startups tohelp them in the fragile but essential scale-up step from “startup to company”.


What's the deal for startups?

5+1 Months ProgramAn intense 5+1 months program supporting startuppers to realize their project

Teaching4 hours of lectures per week held by the most important advisors of the sector

MasterclassSpecial meetings with the most relevant CEO of the industry: 3 hours meeting once a week

Tailored MentorshipCarefully selected mentors from Digital Magics and Partner Companies who provide hands-on support during the acceleration period

Coworking SpaceFree coworking desk space at the dynamic Digital Magics Milan offices for the entire team during the 5 +1 months program

GrantExclusive partner deals from leading technology providers

Test Expenses€5,000 in cash per company provided to cover the first expenses and after the first selection based on KPI screening other €15.000 in cash for the selected companies for first market tests & sales

Inverstor DayEvent organised to meet Partner Companies, active angels and VCsinvesting in Fintech


Programme’s Partners


THANK YOU

The Excellence Acceleration Program in Fintech sector · 2017-12-21 · Facebook and Apple) and...

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