Financial Innovation is one of the leading sectors of disruption lately. It’s an industry that hasn’t changed for years, with very high profits and very high fees for customers. The guys over at NetBanker understood this quite some time ago, and gave life to a series of awesome conferences: Finovate.

In may they will be hosting Finovate Spring 2010, in San Francisco. I highly suggest that who has an interest in this industry book his flights right away, as it’s an unmissable event. It’s going to showcase the best in financial and banking innovation, and likely to see some of the most interesting startup companies in the field.

You can grab your $100 discount entering this code on the registration page: theStartup10

Here are last year participants, if we were to see half the quality this year, I’d still be happy. Expect an update with 2010 presenters soon.

Private Sale Gmbh, the company operating the private shopping community site brand4friends, acquired TripHunter.de, a private online travel club.

The Berlin-based company, owned by a consortium that includes Mangrove Capital Partners is providing a supposedly good exit for the investors in the 2-years-old travel community, which include famous german business angels Lukasz Gadowski and  Oliver Jung BVP Berlin Venture Partners and the swiss Redalpine Venture Partners.

Private Sale also invested a “multi million” amount into UK’s Secret Sale, as reported by TechCrunch in February.

Brands4friends.de made €80 million in sales in 2009, a three-fold increase on the year before, and it ranks as the biggest online shopping club in Germany and Austria, the two markets where it already operates. It became profitable within two years of its launch in 2007 and has 2.5 million members and currently stocks products from around 400 fashion brands.

This is not so new, but it has been overlooked by the media, while I think it’s a very important event in the european venture capital landscape.

BaltCap has been around since 1995 and has managed four private equity and venture capital funds with total capital of €130m.

In January the closed a new €30M fund that will consist of €20m provided by EIF managed JEREMIE Holding Fund and €10m raised from local private investors, including Parex Asset Management, Hipo Fondi, LKB Krajfondi, Pirmais Slegtais Pensiju Fonds and high net worth individuals.

The fund will provide start-up and expansion financing to companies with established operations and growth potential taking equity stakes of between €300,000 and €3m, with the aim to build a portfolio of 15 to 20 investments.

Plus notably, BaltCap is the first venture capital fund to successfully complete private fund raising under the European Investment Funds managed JEREMIE initiatives in Europe, and the first structured private equity fund to be raised in the Baltics since the economic crisis hit the region.

Today I want to share with you one of the best initiatives regarding european entrepreneurship that I’ve seen in a long time.

Stanford University has in fact developed an awesome seminar series about european entrepreneurship and innovation. The program, called “European Entrepreneurship & Innovation Thought Leaders Seminar” is directed by Burton Lee, a visionary professor and general vc and technology startups expert.

It is a weekly lecture series and is offered each Monday afternoon (4:15-5:30pm) in Skilling Auditorium on the Stanford Engineering campus. It’s open to the public at no charge and all the videos are online for everyone to watch. (Here is the info required to watch the video).

Some of this year’s topics included:”New Venture Funds in Europe”, “French and Irish Entrepreneurs in Software & Cleantech”, “Nordic Entrepreneurs and Venture Spinouts”, “Entrepreneurs & Venture Investors in Spanish Regions”, “Venture Capital and Technology Outsourcing in Eastern Europe” and “Europe in the Global Entrepreneurship Scene”.

I strongly suggest you watch the videos of some of these, there’s some inspiring stuff to take out from them. Also take some time tomorrow and join in to watch the “Venture Capital and Social Media Startups in Spain and Southeast Europe” lecture which will feature Nico Goulet – Managing Partner, Adara Venture Partners and Andrej Nabergoj – CEO & Co-Founder, Noovo. I surely will.

There has been immense interest in the App Store. It has 28,000 developers who have made 140,000 apps to date. It’s amazing how much energy has been diverted to the iPhone and now the iPad platform. In its 18 month history, the App Store has a dramatic impact on our lives, not just as consumers, but has changed businesses around the world. It amazes me.

What I have seen:
Developers quitting their jobs and starting their own companies selling apps. Companies allocating resources and departments to making apps. VCs investing $24 million into an iPhone app and creating funds dedicated to app development. Companies piggybacking on the usefulness of apps. Companies extending their service to mobile. Millions of websites reviewing apps. Companies being threaten by apps.

I’m not even mentioning the impact of the iPhone itself.

If apps are the equivalent  of software, then Apple is Microsoft now. If the app store is the web, then Apple is Yahoo. I wonder who will emerge as Google. Just a thought.

Sofinnova Partners, a Paris-based venture capital firm, announced today the closure of its sixth fund, Sofinnova Capital VI, bringing in €260 million.

The firm is over 35 years old, and has backed nearly 500 companies; it has around €1 billion of funds under management, an office in San Francisco and an awesome track record.

The investors that fueled the fund include CDC Entreprises, Industrial & Financial Investments Co., JP Morgan Asset Management, funds advised by Partners Group and Skandia Life Insurance Company.

Denis Lucquin, a managing partner of Sofinnova Partners commented “Given the context of the global economy and coupled with our successes during the past 12 months, the closing of our sixth fund is testimony to the fact that our investors recognize our solid investment style and our ability to generate returns, even during turbulent economic times”.

Sofinnova Capital VI will invest in all kind of areas, its former investments (already are in healthcare therapeutics, medical devices, green chemistry, wireless and mobile technologies.

The portfolio companies include Celsius, CoAxia, Inc., Crescendo Biologics Ltd, DNP Green Technology, Inc. , Flexion Therapeutics AG, MD Start, Mydeco (UK) and Sagem Wireless (France).

Concluding, Lucquin added: “With the successful trade sales of our portfolio companies and the IPO of Movetis, 2009 confirmed that Sofinnova Partners is a major player in backing entrepreneurs and building world leading technology companies.  This to us proves that one can make money with European Venture.”

• GERMANY – HTGF and New Commercial Room invest in SciEngines

High-Tech Gründerfonds and New Commercial Room have invested an undisclosed sum in software business SciEngine

• FRANCE – Sofinnova Partners leads EUR 3.3m investment in Celsius

Sofinnova Partners, a leading European venture capital firm, announced that it has invested EUR2.2 million in Celsius X VI II, a French-Swiss firm developing unique mobile phones based on high complexity mechanics. Sofinnova’s investment is joined by AGF Private Equity’s EUR500,000 and a further EUR600,000 from business angels bringing the total funding to EUR3.3 million. Jean Schmitt, Managing Partner at Sofinnova Partners will also join the Celsius X VI II management board.

• GERMANY – Hasso Plattner Ventures co-invests in RIB Software

Venture firm Hasso Plattner Ventures and listed software company SAP AG have invested in software provider RIB Software AG

• SWEDEN – FlatFrog gains €12.5M in funding

Financial investor Invus and strategic backer Promethan have co-led a financing round for technology business FlatFrog Labratories, in which existing investor Sunstone Capital also participated. ( Press release )

• GERMANY – Triangle and ERP invest EUR 2.5m in TakWak

Triangle Venture Capital and ERP Startfonds have invested in TakWak, a spinout from FG Microtec, in a funding round worth EUR 2.5m

• UK – YFM invests £120,000 into New Net Technologies

YFM, alongside management, has invested £120,000 into software company New Net Technologies in a second round of financing for the business

• GERMANY – Acton Capital Partners acquires stake in mytheresa

Acton Capital Partners has acquired a minority stake in luxury online retailer mytheresa through an undisclosed investment

• UK – Bestport in £4.5m round for Intela

Bestport Ventures has led an investment in internet marketing company Intela, committing a little over £3m in a round totalling £4

• GERMANY – Seventure and DuMont invest EUR 2m in Tradoria

Seventure Partners and DuMont Venture have invested EUR 2m in e-commerce solutions company Tradoria, in a series-B funding round

• FRANCE – Alven invests EUR 500,000 in QuelleEnergie

Alven Capital has invested EUR 500,000 in online energy consultancy QuelleEnergie, alongside business angels who have supported the company since its formation in 2008

• GERMANY – HTGF provides seed funding for Raumfeld

High-Tech Gründerfonds has provided seed funding for hi-fi systems maker Raumfeld GmbH

• FRANCE – EdRIP invests EUR 2.5m in Smile

Edmond de Rothschild Investment Partners has backed Smile, an open source solutions company, with EUR 2.5m

• FRANCE – Aster Capital receives EUR 70m for maiden fund

Alstom and Schneider Electric, the electricity companies, are launching a joint venture capital fund, Aster Capital, targeting start-up company in the energy and environmental sector

• GERMANY – Earlybird leads EUR 3m round for EBS Technology

Earlybird has led a EUR 3m investment in medical device business EBS Technology GmbH, together with BC Brandenburg Capital

• FRANCE – I-Source supports eYeka

I-Source has invested an undisclosed amount into eYeka, a company which a provides online video and image service applications

• FRANCE – I-Source invests EUR 2m in Mobigard

I-Source, alongside Direct Energie and Bouygues Telecom Initiatives, has provided software business Mobigard with a EUR 2m investment

• UK – The Aspire Fund invests in TalentPuzzle

Capital for Enterprise’s The Aspire Fund has invested an undisclosed amount into TalentPuzzle, an online recruitment platform, alongside Venrex Investment Managemnet and two angel investors

• FRANCE – Highland CP and Endeavour provide Spartoo with EUR 12m

Highland Capital Partners and Endeavour Vision have led a EUR 12m Series-B round of financing of Online shoe distributor Spartoo

• GERMANY – JCMB and IBB back online learning portal sofatutor

JCMB Beteiligungs and IBB Beteiligungsgesellschaft have invested an undisclosed sum in online learning portal sofatutor

• FINLAND – Inventure and Nexit in EUR 3m round for Rightware

Venture investors Inventure and Nexit Ventures have co-led a EUR 3m financing round for software company Rightware

• UK – Maven’s Capital for Enterprise invests £650,000 into Qire

Maven Capital Partners, through its Capital for Enterprise Fund, has invested £650,000 into Qire, a provider of intelligent voice messaging solutions

• DENMARK – ViaVenture backs Adform

Danish venture fund Via Venture Partners has invested in online marketing platform provider Adform

• UK – WHEB Ventures invests in PassivSystems

WHEB Ventures has invested an undisclosed amount into home energy management company PassivSystems

• SPAIN – Debaeque takes 10% in BuyVip

Venture firm Debaeque has invested an undisclosed sum in online private buyers club BuyVip, acquiring a 10% stake in the business

• UK – Bridges leads £1m round for Call Britannia

Bridges Ventures, via its Social Entrepeneurs Fund, has led a £1m investment in customer contact centre business Call Britannia, alongside Big Issue Invest, management and the government’s Future Jobs Fund

• GERMANY – Balderton Capital leads EUR 5m wooga funding

Balderton Capital has led a EUR 5m investment in social gaming company wooga

• Meidlinger Partners holds $15m first close of cleantech fund

Meidlinger Partners has reached a first closing of its cleantech fund, Meidlinger Partners Sustainable Investments, on $15m

• UK – NorthStar leads £800,000 Cogenta funding

NorthStar Equity Investors (NSEI) has led an £800,000 investment into software company Cogenta Systems, alongside Hotspur Capital Partners

• UK – Orkos Capital et al. invest EUR 9m into Muzicall

Orkos Capital, Veddis Ventures and GP Bullhound have invested EUR 9m into ringback tone service provider Muzicall, alongside existing backers BlueRun Ventures and Thule Investments

• UK – Octopus launches £25m Titan VCT 4 fund

Octopus Investments has announced the launch of Octopus Titan VCT 4, a new vehicle designed to invest in early stage UK companies with a target of £25m

• ROMANIA – 3TS Capital Partners back InternetCorp

3TS Capital Partners has acquired a minority stake in Romanian online media company InternetCorp

• UK – Atlas et al invest $20m into picoChip

Atlas Venture, Highland Capital Partners, Pond Venture Partners and Scottish Equity Partners have invested $20m into wireless infrastructure company picoChip, alongside Rothschild, AT&T, Intel and Samsung, in a Series E funding round

• SWEDEN – Chalmers back NemaLabs with further SEK 5m

Chalmers Innovation Seed Fund is backing software business Nema Labs with SEK 5m in a funding round raising a total of SEK 10m for the company’s internationalisation

• UK – ePlanet invests over £1m into eCommera

ePlanet Ventures has invested in e-commerce service provider eCommera in a deal valued at £1m.

• AUSTRIA – Pontis leads $3.5m round for Xendex

Pontis Capital and a group of business angels have invested in games developer Xendex, in a financing round worth $3.5M

• UK – DN Capital invests in Apsmart

DN Capital has invested an undisclosed amount into smartphone company Apsmart

• GERMANY – HTFG and MAZ invest in MobileBits

High-Tech Gründerfonds and Maz level one have invested an undisclosed sum in software company MobileBits

• UK – Dawn Capital invests in series A round for Manic Monkey

Dawn Capital has invested an undisclosed amount into 3D animation specialist Manic Monkey in a series-A round of financing

• GERMANY – Crédit Agricole et al. invest in Upside Shopping

Crédit Agricole (CA) Private Equity has participated in an undisclosed financing round for internet business Upside Shopping, alongside seed investors Rocket Internet GmbH and existing backers

• UK – Beringea invests £1m into TH_NK

Beringea, via its ProVen VCT fund, has made a £1m investment into digital agency TH_NK

• UK – Entrepreneurs launch new venture fund

A syndicate of technology entrepreneurs have launched a new London-based venture fund, The Founders Club, open only to investors that are founders or chief executives of start up companies

This is a post I recently wrote for TechCrunch Europe. They did some major editing on it.

Rome-based iWikiPhone, a social network for iPhone users where they can discover, share and discuss the best apps, has closed a €250k round of funding. The money comes from a number of private investors and also from Egolab, a Rome based company specializing in online media. Egolab has provided 100k of funding by way of services and a cash investment in return for 20% equity in the company.
With 100,000 apps available from the iPhone App store, finding the good ones is becoming increasingly difficult. iWikiPhone’s answer is that the best way to discover the most interesting and relevant apps for Apple’s smartphone is through recommendations from friends and from knowing which apps your friends are actually using.
The most interesting part, however, is that they also plan to crowdsource ideas for new iPhone apps from the iWikiPhone community. Users will be able to suggest apps and make money. The “idea owner” will be paid $500 and a share of revenue generated through selling the app in the iPhone App Store, which of course is how iWikiPhone plans to make money too.

Luca Di Persio, one of the founding partners of Egolab, was immediately enticed by the concept: “…among the most important things that characterizes today’s online environment is collaboration, and with that, the ability to overcome traditional barriers of communication by bringing together those who have the ideas and those who can execute these ideas”, says Di Persio.

iWikiPhone was founded in June this year by the former CTO of start-up dooyoo.com, Luca Di Cesare, 40. Since leaving Dooyoo, Luca has worked as a DoubleClick consultant at Google, and after reading Wikinomics he was inspired to launch iWikiPhone.

I’ve embedded a video below that explains how the service works.

As you could see from yesterday’s post, there has been a Startup Competition going on at LeWeb, in Paris. Mike Butcher, from TechCrunch Europe and the French Minister of Internet just announced the winners of the competition.

Here are the companies that got to pitch in front of more than 2000 attendees:

• 1st: Stribe


This is one of the services I was looking forward to. It’s one of the first very useful ones, enabling you to create a social network platform on top of your website very easily.
In their own words: “Stribe is a plug and play service to instantly create a social network on any website”

• 2nd: TigerLily


This one was an unexpected surprise, it’s a set of facebook applications to help you manage your pages and make them more interactive. Presentation was a bit boring, slides where cool and product sounds good. In their own words: “Tigerlily is a set of Facebook apps for marketers who want to get more from Facebook pages.”

• 3rd: CloudSplit


In their own words: “Real-time spending insight, real-time cost control.”
CloudSplit is a very cool product, targeting a real business problem. It’s a very comprehensive tool to monitor your cloud spending and see how much each application is costing you, and reduce your overall costs.

There were some very cool companies presenting this year at LeWeb and the choice was very hard for the judges. Please take a time to check the others companies that presented too!