Emerging Tech Investment Opportunities

Europe's launch of a digital wallet is a game changer for #banking and #payments, far beyond than we can imagine. Let’s take a look.   What happened?   On 29 Feb 2024 the EU adopted regulation to launch a European Digital Identity Wallet (EUDIW) that will harmonize #digitalidentity across Europe.   Main provisions:   —   EUDIW is an app allowing citizens to digitally identify themselves, store and manage identity data and official documents in digital form   —   Many wallets in each member state with the same technical standards, UX and functionality   —   Addressing both online and offline public and private services across the EU —   Recognized throughout Europe   —   Voluntary   —   Free for natural persons, businesses may be subject to fees   —   User control over their personal data   —   E-signature   —   EUDIW Toolbox based on the Architecture and Reference Framework (ARF) defining common specifications, referenced in implementing acts (legislative texts) across all EU Member States   —   Pilot projects until 2025 - 360 private companies and public authorities across the EU - testing everyday scenarios   —   Successor of the eIDAS regulation (launched in 2014)   Example use cases:   —   Access or open a bank account —   Perform onboarding process (AML, KYC) —   Initiate a payment —   Apply for a loan —   Submit a tax declaration —   Enroll for university —   Rent a car or book a hotel online —   Strong Customer Authentication   Implications for the #finance industry:   —   EUDIWs will unify all physical documents (IDs, passports, driving licenses, etc) under a digital front layer   —   Financial institutions and online platforms with more than 45 mn users (i.e. Amazon, Facebook) will be obliged to accept EUDIW   —   Banks will not have to maintain anymore their own authentication mechanisms, however the wallet will largely complement and not replace banks’ solutions   —   Service providers, such as PSPs or credit card companies may have to pay for identification services (i.e. to onboard customers)   —   PSD2 authentication requirements will be met via EUDIWs paving the ground for an increase in payment initiation and account information calls and boosting POS-based use cases such as QR code payments or payment initiation at POS   —   A combination with the Digital Euro is almost certain   Players in #financialservices will be influenced across 4 directions:   —   User experience —   Compliance —   Reduction of fraud —   New use cases   Impact:   —   Europeans can save up to 855,000 hours of time and businesses more than €11 bn a year   —   80 % EU citizens' adoption expected by 2030   Timing:   —   Publication in the EU Official Journal – Mar 2024   —   6 - 12 months for Implementing Acts   —   Within 24 months after Implementing Acts, Member States must provide EUDIWs. Organizations must accept them as an authentication method in the following year   Opinions: my own, Graphic sources: European Commission, Innopay, Gataca

“DOE expects a surge in annual DER additions from 2025 to 2030, including 20 GW to 90 GW of demand capacity from EV charging infrastructure and 300 GWh to 540 GWh of storage capacity from EV batteries. It expects smart thermostats, smart water heaters and non-residential DER will contribute an additional 5 GW to 6 GW of flexible demand annually, distributed solar and fuel-based generators will add 20 GW to 35 GW a year and up to 24 GWh of capacity a year from stationary batteries. “Rather than viewing the massive adoption of EV and other DERs just as load to serve, utilities and regional grid operators can view this as an opportunity to increase the flexibility of the grid and more efficiently use existing resources and infrastructure,” DOE said. Buying peaking capacity from a VPP made of residential smart thermostats, smart water heaters, home managed EV charging, and behind-the-meter batteries can be 40% lower net cost to a utility than buying capacity from a utility-scale battery and 60% lower than from a gas peaker plant, DOE said, citing a May report by The Brattle Group.” #VirtualPowerPlants

Re-Bundling the Bank 💡 Costs are growing for fintechs, but it's not just higher interest rates affecting their margins. Customer acquisition costs (CAC) are also on the rise and contributing to overhead. In response, some fintechs are seeking partners with existing customer bases. In June, for example, eBay and Venmo announced a partnership, allowing shoppers to pay for their purchases with their Venmo balance or methods linked to their Venmo account. Other fintechs, including big names like SoFi, have applied for bank charters. There is also a move to diversify revenue streams, illustrated by Robinhood’s reduced reliance on transaction fees for the bulk of its income. Both trends underscore a clear reality: As fintechs get squeezed, it is less viable for them to offer single, standalone products 💳 At the center of these moves is a focus on customer value. One effective way to reduce CAC is offering customers value on the financial side through products that help build savings or offer rewards. Another strategy is to add products to an existing customers base. Driven by their customers' growing expectations for digital solutions, Large Financial Institutions are increasingly partnering with, investing in and acquiring fintechs, leveraging the functionality and customer bases that fintechs have built in their specialized areas. Acquisitions such as JPMorganChase’s purchase of wePay for payments are one way for retail banks to add capabilities without building them in-house. At the same time, strategic partnerships can create efficiencies in customer acquisition. However, achieving a proper win-win in those relationships can be difficult to strike 🤝 Fintech partnerships are intended to be symbiotic, with tech companies like Chime providing a user-friendly front-end while a chartered partner bank such as The Bankcorp or Stride Bank, N.A. provides the FDIC-insured accounts and handles risk and compliance. This allowed fintechs to walk like a bank and talk like a bank while leaving the actual banking to someone else. In the last decade, deposits in fintech partner banks have skyrocketed, growing 9x faster than deposits in small US banks overall 🚀 Regulators are stepping up their oversight by issuing 50 severe enforcement actions in the last six months. A lopsided number of these actions are targeting partner banks. Startups are responding to the increased regulation by beefing up compliance talent and by reviewing existing processes, in some cases severing ties with partners. That opens the door to AI-native startups who can meet a high bar for regulation. Source: Silicon Valley Bank - https://t.ly/LfKVy     #Innovation #Fintech #Banking #OpenBanking #EmbeddedFinance #API #BaaS #FinancialServices #Payments #Lending #Blockchain #Compliance 

AR and VR were once seen as experimental... Today, they’re solving our major problems. By 2030, the global market is projected to reach $200B+, with Europe contributing $15.8B by 2029. But the more important shift is where AR/VR is actually starting to work. We’re already seeing tangible impact in healthcare:   → The World Health Organization reports a 20% reduction in surgical errors through immersive simulation.   → The NHS in the UK now treats over 10,000 patients annually using VR-based therapies. → In France, hospitals using AR-assisted surgeries have achieved 35% faster recovery rates.   Backing these outcomes, the European Investment Bank recorded over €5 billion in public and private investment in AR/VR healthcare applications in 2022 alone.   Countries like Germany, France, and the UK are leading the way through industrial use cases.   5G networks are improving the technical foundation. And the integration of AI is making AR and VR systems more intelligent, more responsive, and easier to apply in real-world environments.   The broader trend is clear: AR/VR is no longer a speculative bet.   That changes the lens for both founders and investors.   Instead of asking “What can we build with AR/VR?”, the better question is: “Where does this technology naturally integrate to unlock measurable value?”   We have put together in the map below the AR/VR startups in Europe; if we missed any, let us know in the comments so we can add them in version 2 of this map.   #Venturecapital #AI #Deeptech #Startups   Follow us at APEX Ventures and subscribe to our newsletter for exclusive content on groundbreaking Deep Tech startups: 🔗 https://t2m.io/EV2qHQuo

A year has passed since I last visualized the cloud provider landscape, and the changes are striking.  While each provider's strengths remain consistent, several key trends have reshaped the ecosystem: • 𝗧𝗵𝗲 𝗠𝘂𝗹𝘁𝗶-𝗖𝗹𝗼𝘂𝗱 𝗣𝗮𝗿𝗮𝗱𝗶𝗴𝗺:  Organizations are increasingly moving away from single-provider reliance, adopting multi-cloud strategies to optimize spending, avoid vendor lock-in, and leverage best-in-breed services from various platforms. • 𝗚𝗿𝗲𝗲𝗻 𝗖𝗹𝗼𝘂𝗱 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲𝘀:  Sustainability is no longer optional.  Major cloud providers are doubling down on renewable energy and providing tools for customers to monitor and reduce their environmental impact. • 𝗔𝗜/𝗠𝗟 𝗗𝗲𝗺𝗼𝗰𝗿𝗮𝘁𝗶𝘇𝗮𝘁𝗶𝗼𝗻:  The accessibility of artificial intelligence and machine learning has exploded.  Providers are offering increasingly user-friendly tools, empowering businesses of all sizes to harness the power of AI. • 𝗘𝗱𝗴𝗲 𝗖𝗼𝗺𝗽𝘂𝘁𝗶𝗻𝗴'𝘀 𝗥𝗶𝘀𝗲:  Edge computing is transforming industries. Platforms like Azure Arc, AWS Outposts, and Google Anthos are evolving rapidly, enabling innovation in areas like IoT and real-time data processing. • 𝗦𝗲𝗿𝘃𝗲𝗿𝗹𝗲𝘀𝘀 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻: Serverless computing continues its ascent, abstracting away infrastructure complexities and allowing developers to focus on code.  Recent advancements have focused on improved tooling and broader functionality. • 𝗧𝗵𝗲 𝗥𝗲𝗽𝗮𝘁𝗿𝗶𝗮𝘁𝗶𝗼𝗻 𝗧𝗿𝗲𝗻𝗱: Interestingly, alongside cloud adoption, some companies are also exploring "reverse cloud," moving certain workloads back on-premise.  This often reflects a focus on cost optimization for specific applications or data governance requirements. The ideal cloud solution remains dependent on individual business requirements.  Regularly evaluating your cloud strategy is essential to ensure it aligns with your evolving needs. What significant shifts have you noticed in the cloud landscape lately? I'm interested in hearing your insights.

Banking on Invisibility ? Envisioning the next generation of financial products, services, and paradigms involves anticipating and adapting to evolving trends in technology, regulation, consumer behavior, and global economic conditions. 1. Open banking has enabled brands across the board—from fashion to mobility to healthcare—to act as financial institutions, embedding loans, payments, payroll and more into existing offerings. 2. Digital-First Banking: The next generation of financial services will continue the shift toward digital banking. Traditional banks and fintech companies will offer seamless online and mobile experiences, making banking more convenient and accessible. 3. Automated Regtech and Compliance Automation: Regulatory technology (Regtech) will continue to evolve, automating compliance processes and ensuring financial institutions adhere to increasingly complex regulatory requirements. 4. Behavioral Finance: Understanding consumer behavior and psychology will play a more significant role in designing financial products and services. 5. Sustainable Finance: The financial industry will increasingly incorporate sustainability factors into investment decisions and risk assessments. 6. Blockchain : Blockchain technology will disrupt traditional financial systems, enabling faster, more secure, and transparent transactions. 7. Artificial intelligence will power advanced analytics, personalization, fraud detection, and robo-advisors, enhancing the efficiency and effectiveness of financial services. These trends represent a glimpse into the future of finance, where innovation and technology will continue to reshape the industry. The financial services sector will need to adapt and embrace these changes to remain competitive and meet the evolving needs of customers. Let's imagine - An entirely new form of finance is on the horizon: one that’s abstracted, seamless and connected at its core.

🗣️ 2025: The State of 🇺🇸 Fintech – Why MENA Leaders Should Pay Attention to this report focussed on US-Fintech The US fintech market has long been a #bellwether for global financial #innovation—and 2025 is shaping up to be yet another pivotal year. The attached report “2025 State of Fintech” report highlights major trends that won’t just shape the US market, but will ripple across multiple regions, including MENA. Key Insights from the Report Relevant to MENA: 🕹️ Embedded Finance 2.0: In the US, embedded finance has gone beyond payments into lending, insurance, and wealth management. As MENA’s super apps get traction and platforms proliferate, there’s a clear opportunity to adopt and adapt these models to local ecosystems. 🕹️ Vertical SaaS + Fintech: The rise of industry-specific fintech solutions is a trend MENA can capitalize on. Think fintech offerings tailored for sectors like oil & gas, logistics, or tourism—major economic drivers in the region. 🕹️ Regulatory Lessons: The US has seen the collapse of key #BaaS providers due to regulatory gaps. MENA regulators and fintechs can learn from these missteps to build more resilient frameworks as Open Banking and BaaS emerge in the region (but that doesn’t mean that they should paralyze the progress and keep everyone in limbo) 🕹️ AI’s Second Act in Fintech: In the US, AI is moving beyond chatbots into risk management, underwriting, and personalized wealth. With MENA’s growing interest in AI, these use cases can serve as a roadmap for localized adoption; but banks will need to address their legacy infrastructure, legacy mindset and legacy approach to digital transformation 🕹️ Funding Shifts: As the US fintech funding landscape evolves, MENA investors—especially sovereign wealth funds, CVCs and family offices—can spot new opportunities for strategic investments and partnerships. One thing is clear that the VCs in the MENA region have a long way to go in being able to fully support the growth required 📣 If you’re a fintech founder, investor, regulator, or operator in MENA, this report offers invaluable insights to shape your strategy. Don’t just watch the future of fintech happen—help define it in our region. Let me know which trend you think will hit MENA next! 👇💬 #Fintech #MENA #EmbeddedFinance #RegTech #AI #VentureCapital #FintechTrends2025 #BaaS

Welcome back to another edition of Fintech Wrap Up! This week, we’re diving into some exciting trends reshaping the banking and fintech landscape. First, we take a closer look at the rise of platform banking, where banks shift from traditional models to offering customers a digital marketplace of services. This new approach, driven by regulations like PSD2, allows for better customer experiences and opens up new revenue streams, but it requires careful strategy and investment. Platform banking is set to be a game changer in the financial world. Next up, we explore the transition from embedded to orchestrated finance. As fintech matures, we’re seeing the re-bundling of services. Companies like Wise and Revolut are great examples of how fintechs expand by integrating additional products, creating a seamless ecosystem for their users. This bundling trend is particularly relevant for bancassurance, where the embedded finance model allows for personalization and increased loyalty. Then, we shift gears to scaling fintechs. Moving from $1 million to $10 million ARR is the critical stage where companies go from a feature-driven business to a full-fledged platform. Companies like Netlify and Twilio illustrate how adding features and upsell opportunities can help fintechs expand their customer base and solidify their presence in the market. We also take a deep dive into Airwallex’s business model. Founded in 2015, Airwallex grew rapidly by offering affordable cross-border payments, and now, it’s evolving into an embedded finance platform. Their ability to process transactions through their own network gives them a unique advantage, allowing faster, cheaper international transfers and positioning them as a leader in cross-border finance. Lastly, we explore the Bank of Thailand’s Retail CBDC pilot, where over 4,000 users and 140 merchants tested a digital currency across live transactions. The test results offer a glimpse into the future of retail payments, showcasing the technical capabilities and real-world potential of central bank digital currencies. #fintech #embeddedfinance #openbanking Prasanna Marcel Richard Panagiotis Tony Efi Nicolas Arjun Dr Ritesh

$20 billion. That's how much Brookfield just bet on the energy transition - in the middle of a "climate tech downturn." Brookfield raised $20 billion for its second energy transition fund - 33% more than Fund I raised in 2021. Let that sink in. 2021: Zero interest rates. Frothy markets. Peak climate hype. 2025: Higher rates. Cautious LPs. "Death of ESG" narratives. And yet institutional capital is INCREASING allocations. Here's what Brookfield is backing: $5 billion already deployed into renewable power projects and developers focusing on solar, wind, and battery storage. Not speculative moonshots. Cash-flowing infrastructure. Why this matters: → The energy transition isn't a trend, it's physics In 2024, global investment in clean energy reached an all-time high of $2 trillion, double the level of fossil fuel investment. → Policy uncertainty doesn't kill fundamentals Even with Trump administration cuts to climate programmes, commercial partnerships between technology providers and buyers in the US have continued to rise. → Infrastructure beats software in climate Climate tech investments grew 15% YoY, bolstered by growing demand for power and incentives. The three sub-sectors getting serious capital: 1. Grid Infrastructure Rising protectionism is making access to domestic energy and stable infrastructure a strategic priority. Every AI data centre, EV, and heat pump needs grid capacity. 2. Energy Storage Battery storage is no longer experimental. It's critical infrastructure. 3. Critical Minerals Mega-deals in nuclear, critical minerals, and sustainable aviation fuel show growing momentum behind technologies that anchor domestic supply chains. Bottom line: Whilst VCs debate whether climate tech is "back," institutional allocators are quietly deploying billions into assets that will define the next 30 years. If you're a founder building energy infrastructure or storage solutions, this is your moment. If you're an investor still "exploring" climate, you're already late. P.S. I'm connecting family offices with grid infrastructure and energy storage opportunities across Europe. If you want access to the deal flow, let's connect. #EnergyTransition #ClimateInfrastructure #SustainableInvesting #RenewableEnergy LinkedIn Linkedin News LinkedIn News

Robots coating power lines to boost grid capacity by 30%. AssetCool combines specialized coating technology with robotics to upgrade existing transmission lines, avoiding the need for new construction. Their CapacityN platform applies thermal coatings that let lines carry significantly more power without overheating. They’re able to cut costs by 90% compared to traditional grid expansion. Years of construction and permitting can be replaced by a few weeks of work. Investors have taken note. AssetCool just raised £10M in Series A funding led by Energy Impact Partners, with Extantia Capital, Taronga Group, and others onboard. This matters because grid capacity quietly holds back the energy transition. In many countries, new solar and wind projects face 10+ year waits just to plug into the grid. What are some other approaches you think are worth watching on the grid bottleneck?