Railsbank, a UK-based open-banking and regtech platform, and fellow London based startup Cybertonica, have won offers of €100,000 venture capital investment from MiddleGame Ventures.
Both companies were ranked “most ready for investment” by a group of their peers on the final day of the FinTech Europe 2018 programme. This is a three-month venture development programme for European startups developing finTech and RegTech compliance solutions.
The programme was led as part of a global collaboration for financial health between PayPal and Village Capital, with local support from MiddleGame Ventures and the Luxembourg House of Financial Technology.
Twelve early-stage entrepreneurs came together in Berlin and Luxembourg from April to June 2018 for more than 100 hours of programming and networking. They spent time developing their businesses, meeting with mentors and investors, and participating in Village Capital’s unique peer-selected investment process, in which entrepreneurs are given decision-making power over where to allocate venture capital within their peer group.
Nasir Zubairi, CEO of the LHoFT Foundation said: “This three four-day workshops investment readiness and coaching program were inspiring. It is great to have achieved so much with 12 incredible fintech companies and we hope this program will be a game-changer for the 12 entrepreneurs. It was also great to work with Village Capital, PayPal and Middlegame Ventures to execute this epic program. Thank you to all the mentors and Luxembourg community who created valuable insights for all the companies.”
Each of the twelve startups is building a technology-based product, or service, that will help financial institutions, regulators, and consumers interact with the economy in the digital age.
Nigel Verdon, CEO of Railsbank added: “When we were first invited to join, we thought that this would be was just another accelerator. But we were so wrong. The programme has an amazing methodology that helps you frame your business and understand the areas where you need to concentrate in order to succeed and scale.We appreciated the phenomenal set of peer entrepreneurs and the collaborative environment in which we were able to review each others’ businesses in a constructive way. Over the three different sessions of the programme, we’ve taken some of the learnings and implemented them in our business.”
Claire Alexandre, Head of EMEA Government Relations, PayPal said: “The first edition of Village Capital’s Fintech Europe 2018 could not have been more exciting for the PayPal teams in Europe! There were two buzzing cities, three workshops, four partners, 12 start-ups and more than 80 mentors. We are thrilled to have joined these amazing men and women to further the digital agenda for financial services and push the frontiers of technology innovation. A warm thanks to Village Capital, MiddleGame Ventures and Luxembourg House of FinTech for their strong partnership and to the entrepreneurs for their contagious ambition.”
Founded by serial entrepreneurs and FinTech veterans Nigel Verdon and Clive Mitchell, Railsbank helps businesses across the world connect their customers to global banks and financial institutions through a simple API that consists of five lines of code.
Railsbank turbo-charges the scaling of businesses by massively reducing the time and complexity of opening bank accounts, streamlining technical integration with banks, enhancing banking functionality with core Railsbank services; and enabling both parties to have a trusted compliance relationship. Railsbank was the “startup-in-residence” for the 2016 Startupbootcamp FinTech cohort.
Awarded the FinTech50 2017 and in 2018, they are the winners of the Simmons & Simmons FinTech Fund in 2016 and startup pitch winners at Paris FinTech Forum 2017.
In June this year, Railsbank won the best startup pitch at MoneyConf Dublin in 2018, as well as Village Capital and Middlegame Ventures in Luxembourg in 2018.
About Village Capital
Village Capital is a global venture capital firm that helps entrepreneurs bring big ideas from vision to scale. Their mission is to reinvent the system to back the entrepreneurs of the future. Their vision is a future where business creates equity and long-term prosperity. Since 2009, they have supported more than 1,000 early-stage entrepreneurs through our investment readiness programs. Village Capital’s affiliated fund, VilCap Investments, has provided seed funding to more than 90 program graduates.
Village Capital’s global work is supported by USAID’s U.S. Global Development Lab PACE Initiative, which recognises that governments and the private sector can work together to solve society’s largest problems.
Fueled by a fundamental belief that having access to financial services creates opportunity, PayPal Holdings, Inc. (NASDAQ: PYPL) is committed to democratising financial services and empowering people and businesses to join and thrive in the global economy. Their open digital payments platform gives PayPal’s 227 million active account holders the confidence to connect and transact in new and powerful ways, whether they are online, on a mobile device, in an app, or in person. Through a combination of technological innovation and strategic partnerships, PayPal creates better ways to manage and move money, and offers choice and flexibility when sending payments, paying or getting paid. Available in more than 200 markets around the world, the PayPal platform, including Braintree, Venmo, and Xoom, enables consumers and merchants to receive money in more than 100 currencies, withdraw funds in 56 currencies and hold balances in their PayPal accounts in 25 currencies.
About MiddleGame Ventures
MiddleGame Ventures is a Venture Capital firm focused exclusively on early-stage financial services innovation. MGV partners have invested approximately $300mm in nearly 100 financial services firms. The ability to not only understand the traditional financial services sector but also assess the relative opportunities and challenges across various new and emerging technology-generated business models is an absolute prerequisite for investing in financial services innovation. The MGV team has significant investment and operational experience in the broader financial services sector, as well as deep experience working with entrepreneurs, incumbent financial institutions, and regulators.
About LHoFT Foundation
The LHoFT Foundation is a public – private sector initiative that drives technology innovation for Luxembourg’s financial services industry, connecting the domestic and international Fintech community to develop solutions that shape the world of tomorrow. Senior executives from 13 leading private sector institutions sit on our board as leadership circle partners alongside representative from the Luxembourg Government, such as our Chairman, Pierre Gramegna, Luxembourg Minister of Finance, as well as leaders of the Luxembourg Chamber of Commerce, Luxembourg for Finance and PROFIL, the Luxembourg Financial Industry Federation.