DB1 Ventures Zeros In On Funding Blockchain and AI

Figuring out which types of companies or technologies to invest in can be a long and arduous task to take on. This is especially true when it comes to a larger investment company’s decision-making process.

Deutsche Bourse, a German exchange operator, set up a new FinTech venture fund dubbed DB1 Ventures to focus specifically on startups using blockchain and machine learning to revamp the financial market. The goal of this setup is to regulate its investment strategy in companies that enhance its tech and revenue footprint.

In 2016, Deutsche Bourse researched 250+ companies in which to invest and made the decision to move forward with just a select few. These investment opportunities included Digital Asset Holdings, figo, a joint project with the Naga Group to develop a marketplace for exchanging virtual gaming items and the first German growth fund for propelling B2B software companies forward called Digital Growth Fund I.

Deutsche Bourse’s DB1 is looking to invest €5 million to €15 million in three to five companies working in areas like blockchain technology, security, API, cloud computing, machine learning and AI.
DB1’s Managing Director Ankur Kamalia shared the organization’s near-term plans for 2017: “Our immediate focus is the data business, and we are looking at new opportunities and companies within that space. The second thing we are focusing on for the next two quarters is new product or geographic optionality.”
As we see technologies like machine learning and AI continue to evolve over the next few years, it’s likely that venture funds like DB1 will increase investments in tandem to help expedite developments.
In an earlier PYMNTS article, we discussed the possibility of blockchain technology moving mainstream. As such, investments in this tech area will likely also see an increase to meet the needs of new applications.



The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.

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