Bitpanda is an Austria-based fintech company that offers services in cryptocurrencies, commodities, exchange-traded funds (ETFs), and securities trading. The organization holds incredible significance in the digital asset industry for its contributions. Many of Bitpanda’s early investors are also keen contributors to the fintech world. One such example is the SpeedInvest GmbH. It is a venture capital fund that is known to invest in Europe-based tech startups. However, SpeedInvest has announced that it is planning to initiate its fourth fund. This fund is meant to combat the lack of momentum and instability of the fintech market.
CEO Oliver Holle reveals plans for a several hundred million Euro funds
The Co-Founder and Chief Executive Officer of SpeedInvest, Oliver Holle has confirmed the speculations about the new seed fund. He has announced that the company is on its way to closing a fund of hundreds of millions of Euros in the coming months. However, the CEO did not reveal the exact amount or size of the fund.
The firm is aiming to increase the participation of institutional investors in the fund. Their participation might account for the 2/3rd of the fund, as compared to being half of the fund in previous rounds. Apart from institutional investors, the rest of the cash flow will be from family offices.
Moreover, Holle believes that investors will develop an increased liking towards the funds of SpeedInvest because the organization strategically helps early reliable tech startups. Therefore, it gives an increased chance for the success of reliable products. As a result, investors will look beyond the devastation caused by fintech markets to grow the seed fund.
Previously, SpeedInvest has funded WeFox, Tier Mobility, and GoStudent. Thus, the organization is proceeding with its new seed fund. SpeedInvest believes that it has a strong client base and fundraising for this round will not be a problem for the company. The repetitive clients will facilitate the process.
Disruption in tech markets and the plan of SpeedInvest
SpeedInvest acknowledges the dip in the technology market. Stocks like Netflix Inc. and Apple Inc. have also dropped a significant portion of their value. Due to this, several privately owned businesses and companies suffer in valuations. Early investors also find it difficult to exit their positions, and funding prospects are also disturbed.
But for SpeedInvest and its CEO, investing in newborn tech companies is still preferable. The company believes in having a portfolio that puts faith in such startups. They also believe that these startups do not require large capital in the coming years. They have to grow and scale themselves before looking for more capital.
In addition to this, new tech startups also have the tendency to stand against economic challenges and inflation. On the contrary, big firms and large-scale organizations are more adversely influenced by these conditions. The firms that are in a mature phase will find the next year or two to be very challenging. Elite companies might have the resources and funding to deal with this scenario, but the others are more dependent on their investors and owners.
However, Holle also said that it might be difficult for them to access the listing. They might not be able to do so this year. At one time, seed funds were highly trending. Almost every week a new seed fund was introduced to the market. Nonetheless, this trend might soon come to an end because of unfavorable market dynamics.
The CEO of SpeedInvest and his team are optimistic about the success of the new seed fund. However, it is yet to be seen if there is any influence of the downtrending fintech market on the funds. The team at SpeedInvest is adamant on making this fund popular and successful in the tech sector.