Face Off: Slovak and Czech Fintech Landscape Comparison
Updated: May 23, 2019
A few months ago we published the second edition of Slovak Fintech Landscape. Slovakia and the Czech Republic share common history and are archetypically similar markets - we speak similar languages, we like the same food, we have similar traditions and roughly similar economies.
So we at Booster Labs compared the two markets head to head focusing on fintech and venture capital activity in this vertical. We researched fintechs based in the Czech Republic and categorized them based on our proprietary fintech vertical model.
We were curious as to how many startups in our geographies managed to successfully raise venture capital. As a disclaimer we used Crunchbase as our primary source for this data point under the assumption that it covers significant VC funding rounds - local angel/small investment rounds are likely excluded, so let us know if we are missing anything)
A few companies that are not fintechs but cooperate with financial institutions were also included in our model.
What Makes These Markets Different from Fintech Perspective?
The Czech market is twice the size of Slovakia in terms of population, so it is understandable that we identified 58 Czech fintechs compared to 36 fintechs based in Slovakia. In both countries we identified 3 ecosystem players e.g. accelerators, VCs, product builders, media, etc. However, if we take a look at a number of fintechs per capita, Slovakia wins by a margin. There is 1 fintech per 185 000 people in the Czech Republic and 1 fintech per 147 000 in Slovakia.
Although Slovakia is admittedly a small market, it has the highest number of developers per 100 people in the CEE region. There are 3,7 developers per 100 people compared to 1,9 in the Czech Republic. This results in quite a lot of early-stage startup activity in both countries.
We also benchmarked proliferation of startups per fintech vertical as well. Combined, the top most populous 3 verticals are Payments with 18 startups in both countries, Enterprise Processes with 11 startups followed by SME Services/ Accounting and Lending with 10 startups in each vertical.
Slovakia lacks any significant activity in disrupting insurance and both countries lack FinTechs attempting to disrupt mortgages. We did not identify any startups active in RegTech either.
There are more FinTechs active in payments, lending, processes and banking and PFM in the Czech Republic than in Slovakia. On the other hand, taking into consideration the size of Slovakia, it was able to generate more SME focused FinTechs and Big Data/Analytics startups.
Funding of Czech and Slovak Fintechs
A record of €0.7 billion was invested in CEE startups in 2018 according to a report created by Dealroom.co . Since 2013 €48 million of venture capital was invested overall in startups in Slovakia. In the Czech Republic, €173 million was invested during the same timeframe. We clearly see a gap in the venture capital activity going on in these 2 countries. When we look at the number of funding rounds there were 89 in Slovakia compared to 188 in the Czech Republic. This also means that the average amount invested on a on-deal basis in Slovak startups is much smaller.
Out of 36 fintechs we identified in Slovakia, there were 12 that managed to raise capital. The amounts range from €150 Thousand to €25.1 Million. In Czech Republic, 11 out of 55 fintechs raised capital. The company that raised the most venture capital in the Czech Republic is by a massive margin Twisto. Including its recently announced Series B funding the total capital raised by this company to €31 million.
Below you may find Czech FinTech Landscape with highlighted fintechs that managed to raise venture capital (based on data from Crunchbase.com).
VC-Funded Fintechs from Czech Republic
We put together a bit more detailed overview for you to know what those funded fintechs are up to:
Twisto (raised €32M) leads the Czech chart by raising €27.5 Million more than a second-highest positioned company. The company offers postponed payment and smooth online checkout for e-commerce. Twisto account and card and bracelet allow users to use Twisto account for everyday payments.
Worldcore (raised €4.45M). It is the world’s first voice biometrics-enabled, EU-regulated, one-stop shop in the payments industry offering a wide range of payment solutions including payment accounts for sending and receiving bank transfers, prepaid debit cards (plastic and virtual), mass payments to bank accounts and to any Visa/MasterCard.
Mutumutu (raised €1.42M) is a technology-based life insurance platform. It lets you create life insurance online and rewards you by returning up to 30 % if you visit your doctor and live a healthy lifestyle.
Rossum's (raised €890K) artificial intelligence understands complex structured documents what enables companies to capture data from financial documents efficiently and with human-level accuracy. Unlike existing text mining solutions, Rossum's unique deep neural networks reflect the way humans read documents.
Spendee (raised €489K) is a financial assistant platform that helps people manage their finances in an easy and convenient way. Users may connect their bank accounts, electronic wallets, crypto wallets and manually add their cash transactions. Their transactions are synchronized and automatically categorized.
CleverAnalytics (raised €390K) is a cloud-based business mapping platform that translates your business intelligence data into real meaning by visualizing it in an intuitive context-first map.
BudgetBakers (raised €386) helps you to see all your finances in one place. Bring all your accounts in one place. See your spending in real-time. Spot spending habits. Learn to spend on things you really want.
Trisbee (raised €230K) is a payment solution for freelancers and online and offline businesses.
Fragments (raised €178K). It is a decentralized micro-task platform where people can earn cryptocurrency on their smartphones by completing simple tasks.
Tipli (amount raised N/A) is a cashback site, offering its members an up to 33 % cashback (average of 7%) on their online purchases from hundreds merchants. They take the commission from their merchants (490 shops) and pass it straight on to their members in the form of cashback.
Secteno (amount raised N/A) is a combination of online tool and classic offline accounting that allows business owners to communicate and exchange documents with an accountant only in electronicaly, see overview of their finances and cashflow and even overview of their business account thanks to API connection to some banks.
VC-Funded Fintechs from Slovakia
Piano (raised €25.1M) managed to raised the most capital in Slovakia. It provides cloud-based software to help media companies grow their online revenues and manage user entitlements across platforms and channels.
DECENT (raised €6M) is a decentralized content distribution platform that is open-sourced and utilizes Blockchain to ensure trust and security.
Minit (raised €3.3M) is a software that automatically analyzes processes and provides actionable visual insights for improving revenues, savings and efficiency.
Finax (raised €1.5M) brings a revolution in investing to the Slovak market. As the first they are making intelligent investing accessible to masses.
Žltý melón (raised €1.1M) is a peer-to-peer lending service connecting people who need to borrow money with those who want to invest.
Finnest (raised €1M) is the leading platform for investing in successful medium-sized companies. They do not fund startups or small projects, but exclusively established companies that are successful in the long run and generate millions of turnovers.
Datamolino (raised €539K) removes the pain of manual data entry for accountants, bookkeepers and SMEs. Their application automatically extracts key information from purchase and sales invoices, bills, and receipts, and pushes the data directly to Xero or Sage One accounting systems in minutes.
Crowdberry (raised €150K) is a new way of connecting private capital with innovative companies. It is an equity investing platform whose basic essence is to connect a network of private investors with dynamic entrepreneurial ideas.
Dateio (amount raised N/A) is a business intelligence company that provides businesses with a marketing solution to increase the loyalty of their customers by offering personalized marketing offers based on their card payment data.
TrustPay (amount raised N/A) is among first financial institutions within the region to provide secure e-commerce payments across EEA area.
Pygmalios (amount raised N/A) is a technology company that provides customer experience analytics software and services for physical stores.
Hypomo (amount raised N/A) is a mortgage broker company that is transforming the very business model of brokers as you know it.
Non-FinTechs from the Czech Republic
Although these are not pure FinTech according to Fintech Cowboys they do cooperate with banks on a product/service level so we decided to include them here:
Brand Embassy (raised €4M) is the cloud customer service platform providing 30+ integrated social media channels, messaging, live chat, email and AI-powered chatbot service at scale.
Neuron Soundware (raised €680K) developed a diagnostic technology for early detection of broken machines.
Satis Meter (raised €30K) is a simple, reliable, and integrated measurement of net promoter score. SatisMeter helps companies understand which of their customers are most and least loyal and why - by asking them two simple questions directly inside the product.
The Booster Labs
Booster Labs is a product innovation lab focused on fintech in Europe. Please do not hesitate to get in touch at firstname.lastname@example.org.
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