We were able to secure shares in the crypto-regtech startup Blockpit and invested in the company through our fund in Luxembourg.
“With the European Super Angels Club we have another strategically valuable partner at our side”, says Blockpit CEO Florian Wimmer.
Blockpit offers software solutions for compliance and taxation of virtual currencies. They act as an interface between traders, tax consulting firms and institutions such as banks and tax offices.
Software for Compliance
It is our second investment in a “RegTech” company. Not even four months ago, we announced an investment in 360kompany AG. We believe in the high relevancy of this sector and are keen on generating synergies for all our portfolio companies. RegTechs simplify and accelerate compliance processes for companies and authorities. Blockpit has developed a reporting standard for cryptocurrencies to serve anti-money laundering guidelines and to enable an optimised tax calculation. This means more transparency and security at significantly lower costs.
European solution for the European market
Terrorism, money laundering and even economic crises have led to a drastic tightening of anti-money laundering guidelines and regulations for financial markets, financial institutions and service providers. This results in considerable additional costs for companies and public authorities. For example, ING was fined 775 million Euros in a money laundering trial.
Berthold Baurek-Karlic, Managing Partner of Venionaire Capital and Chairman of the Super Angels Club, sees great potential in RegTech: “The market is huge and customers’ willingness to pay allows meaningful business models if the quality of the solutions is right. Austrian start-ups are very strongly positioned in this area”.
While Blockpit had previously focused on the German-speaking region, the focus is now increasingly shifting to financial institutions and authorities throughout Europe. The startup established close cooperation with KPMG. Tax and IT security experts of the global company carry out audits of the Blockpit software for various regulations.
2019: Projects with banks in pipeline and monetization
The company has presented an ambitious timetable for 2019. In the first quarter, Blockpit starts the monetization of its software, in April they are expanding into Eastern European markets and Great Britain. Pilot projects with leading banks are already in the pipeline. In order to acquire outside capital, Blockpit issues the first token under Austrian law in a “Security Token Offering”, which promises investors a share in the turnover. The offer is expected to be approved by the Austrian Financial Market Authority by mid-December.
We are always looking for the best European startups and in 2019 we will focus on AI-powered solutions. If you think you have it in you, please apply via our platform. No matter what, we will give you feedback. Promised.
In the media: