Context: Tech meets Impact_EU
Europe's first hub for tech startups, (impact) investors, corporates and development institutions combining "profit and purpose".
In Sep. 2015, the UN set out the 17 Sustainable Development Goals to bring on board businesses - not just governments, development agencies or charities - to take on the world's toughest social challenges around poverty, hunger, healthcare, education etc.
In Nov. 2016, the European Union set out its priorities and approach to implement the 2030 Agenda.
Over 208 impact investors (see further information alongside) investing into "companies, organisations and funds with the intention to generate social and environmental impact alongside a financial return"- are estimated to be managing over $113 bn AuM, with over $22 bn invested in 2016.
South Asia and Sub-Saharan Africa - with their "perfect storm" of government legislation, a booming young population and massive mobile penetration - are the biggest markets for impact investments, with India alone projected to attract $40bn by 2025.
As per the State of European Tech 2016 report, tech startups raised a record-setting $13.6B in investments in 2016, with $2.3B invested since 2015 into deep-tech (AI / ML, IoT, 3D tech, robotics etc.)
Our interactions with European tech founders (including several who have presented at our FinTech Forum events) and their passion for combining social impact with profit, point to a massive opportunity for Europe's formidable tech talent, (impact) investors and corporates.
Taking on the world's biggest social challenges requires combining on-the-ground understanding with the best minds and tech innovations.
However, we identified three important gaps from our interactions:
This is the gap we are looking to bridge with Tech meets Impact_EU, starting with financial services / FinTech.
Is Social Impact Investing The Next Venture Capital?
Research: Startups enabling Financial Inclusion
Nearly 2.5 bn adults globally are unbanked, with 90% of the unbanked living in growth markets like Asia and Africa.
Financial services and microfinance accounted for the lion's share of investment assets allocated across 208 impact investors: ca. $25bn of the over $114bn AuM, as per data from the GIIN Annual Impact Investment Survey 2017.
Our research report Unbundling European Finance - launched at Money2020 Europe, Copenhagen in June 2017- showed over $2.5 billion invested (disclosed amounts only) into European FinTech firms across 300+ deals in the last two years.
There is no dearth of FinTech events, awards and research in Europe.
However, our conversations with European startups enabling financial inclusion - including some who have presented at our FinTech Forum events in the last four years - indicates a gap:
Our report European Startups Enabling Financial Inclusion - out in Nov. 2017 - provides a first overview of startups that are enabling (or could potentially enable) financial inclusion and digital financial services, as well as the investors, financial institutions, development agencies etc. that are supporting or partnering with them.
(Draft) Table of Contents: European Startups Enabling Financial Inclusion
We are looking for participants and sponsors who would like to share their insights or showcase their offerings in this first report covering this high-impact, high-growth space.
Contact: impact (at) techfluence.eu | Tel: +49 69-274015-856.
Founded in 2012 with a passion for the startups and "hidden champions" transforming industries, TechFluence is an award-winning research and corporate development boutique based in Frankfurt and London.
We were recognised by the Wall Street Journal / Financial News as one of the "40 Innovators Shaping the Future" (2014) and by the German Innovationspreis IT "Bestenliste" (2015).
FinTech Forum, which we co-founded in 2013 in Frankfurt as the first community for FinTech in Continental Europe, has helped 250+ startups connect to 750+ investors and financial institutions, via 15+ events till date. Participating startups have gone on to raise over $260M and resulted in exits worth over $250M.
TechFluence has been proud to be a part of Europe's burgeoning tech ecosystem since 2012, and is excited to bring its experience in tech research and corporate development to the social impact space.