Avaloq, the leading global provider of Software as a Service (SaaS) and Business Process as a Service (BPaaS) solutions to banks and wealth managers, leverages the firm’s extensive ecosystem to further increase innovation speed for the financial industry. A new subsidiary, Avaloq Ventures AG, will provide access to venture capital funding and growth support for start-ups and fast-growing fintech businesses. Avaloq Ventures will enable funding for fintechs partnering with Avaloq, e.g. by offering their solutions on Avaloq’s Software Exchange. It will be led by Minho Roth, an alternative investments and fintech entrepreneur with unparalleled experience in funding start-ups. Avaloq Founder and Group Chairman Francisco Fernandez will be Chairman.
Zurich-headquartered Avaloq Ventures will look to build on the strong growth of the Avaloq ecosystem and the global innovation drive in the fintech sector. Through dedicated funding and co-innovation within the Avaloq Community, banks and wealth managers will be able to innovate even faster and provide new services to their customers in an efficient and secure way. Already today, more than 1,300 third-party fintech developers work with Avaloq and over 90 thirds-party fintech solutions are available on Avaloq’s market place.
Going forward, Avaloq Ventures will leverage the successful track record that Avaloq has in investing and co-innovation. In April this year, for instance, the firm acquired a 10% stake in Metaco, a Lausanne-based blockchain and crypto-currency specialist. In the future, Avaloq will continue to identify potential M&A deals at a group level while facilitating fintech funding through Avaloq Ventures.
Avaloq Ventures will look to partner with third-party investors such as banks, wealth and asset managers, and established fintech companies in providing capital. The size of funding will be decided on a case-by-case basis.
Avaloq Ventures will be led by Minho Roth, an alternative investments and fintech entrepreneur with extensive experience in investment and capital raising for technology start-ups. Minho has worked for FiveT Capital AG and Baader Bank AG among others. Francisco Fernandez, Founder and Group Chairman at Avaloq, will join as Chairman. Other board members include Lex Fenwick, previously CEO of Bloomberg and Dow Jones; Professor Dr. Philipp Sandner, Head of the Frankfurt School Blockchain Center; and James Stickland, previously Director of Innovation & Investments at HSBC and part of JP Morgan Chase’s CIO office.
Avaloq Ventures launches simultaneously with Avaloq’s next generation ecosystem which recently won the Best of Show award at Finovate Asia. Both businesses are aligned to feature a new way to access innovation based on ready-to-bank third party solutions, the highest security and standardized secure and scalable banking APIs. Avaloq is launching 150 API endpoints during the second half of 2018.
Minho Roth, CEO, Avaloq Ventures, said: “This is one of the most exciting developments in the global fintech sector, and I’m delighted to be given the opportunity to lead and grow Avaloq Ventures at this pivotal moment in the evolution of the global financial services and technology sectors. We will look to identify, fund and support the most innovative start-ups and companies with the greatest growth potential. They will be able to leverage their access to Avaloq’s client community of more than 150 banks and wealth managers worldwide.”
Francisco Fernandez, Founder and Group Chairman, Avaloq, said: “Avaloq continues to grow and accelerate innovation, and to redefine what is possible in the fintech space. We have brought together an incredible team for Avaloq Ventures, and believe it will offer something truly unique in the venture capital space. We know that many fintechs are looking for support and funding as they look to accelerate their own potential, and Avaloq Ventures will be a very natural partner for these businesses.”