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TECH CENTRAL WE NEED DIVERSITY OF THOUGHT IN THE WORLD TO FACE THE NEW CHALLENGES SIR TIM BERNERS-LEE LEVEL39 LEVEL39: FOURTH ANNIVERSARY FOREWORD BY SIR GEORGE IACOBESCU, CHAIRMAN AND CEO, CANARY WHARF GROUP evel39, the most connected tech The ability to bring the world’s space in London and Europe’s largest corporates together with ANYONE largest fintech community, the UK’s rapidly scaling technology WITH A BIG Lis four years old. businesses is one of Level39’s greatest strengths. The billion- IDEA AND THE Over 43,000 people walked dollar challenges facing traditional through its doors in 2016 to spend institutions become billion-dollar DETERMINATION time with its 200 member companies opportunities for ambitious TO MAKE IT and their 1,000 employees. technology startups. HAPPEN IS London’s tech ecosystem knows When Level39 was founded in that the 39th floor of One Canada 2013, few could have predicted WELCOME Square is home to ambitious the business landscape of 2017. entrepreneurs and global Geo-political events have inspired a customers whose partnerships period of unprecedented uncertainty and collaborations will turn and turbulence. As questions innovative ideas into successful are being asked about London’s business models, significant position in the world, entrepreneurs, valuations and disruptive corporates and government bodies forces within finance. This is an are having to adapt to survive, finding environment people want to new approaches to turn adversity be a part of. into opportunity. In this context, innovation has companies, entrepreneurs, financial never been more important. With institutions, retail and will shortly be companies across all sectors looking welcoming residential tenants. to consolidate their global footprint and gain incremental competitive In fact, the ratio between financial advantages, technological disruption and non-financial services tenants is the most precious commodity at Canary Wharf has switched from in the market. 70:30 ten years ago, to 55:45 today. For businesses at Canary Wharf it is Canary Wharf is a thriving no different and the continued focus technology cluster, including the on Level39 reflects that. In fact, likes of IBM, Intel, Infosys, Oracle, there’s never been a more exciting SunGard, Thomson Reuters, time to be at Canary Wharf, as we First Data, Citihub and one of continue to welcome people from London’s tech unicorns, Skrill. a range of different sectors and Some 7,000 tech professionals develop the residential community now work full time for our tech here. We’re now home to a diverse occupants at Canary Wharf. range of startups, corporate Of course, the very core of our strength in this sector is Level39. Creating a space that houses the frontline of British business is what Canary Wharf has always set out to achieve. From one of the world’s busiest docks to the financial district built in the early 1990s. We have been at the heart of London’s business reinvention and intend to be so again with facilities, connections and offices designed for fast-growth tech firms, scaling digital businesses and innovative global corporates. Anyone with a big idea and the determination to make it happen is welcome and this report is testament to our commitment to ambitious businesses of the future. BRITAIN’$ BILLION-DOLLAR OPPORTUNITIES 4 5 LEVEL39 FOREWORD SIR GEORGE IACOBESCU, CANARY WHARF GROUP 4 CONTENTS 6 THE HOME OF BILLION-DOLLAR AMBITION BEN BRABYN, LEVEL39 8 EVALUATING AN ECOSYSTEM 12 1 2 BILLION-DOLLAR BILLION-DOLLAR OPPORTUNITIES IDEAS PAGE PAGE 14 24 EMBRACING DISRUPTION: EMBRACING INNOVATION: FUTURE-PROOFING FINANCE SCALABLE SOLUTIONS 16 26 COLLABORATION SNAPSHOT: COLLABORATION SNAPSHOT: FORGING A SPECIAL RELATIONSHIP CHAIN REACTION TODD CLYDE, TOKEN DANNY ARANDA, RIPPLE 20 30 THE VIEW FROM SANTANDER ED METZGER, SANTANDER UK 33 3 4 BILLION-DOLLAR BILLION-DOLLAR ECOSYSTEM CONNECTIONS PAGE PAGE 34 48 EMBRACING CHANGE: LIVING FROM SCALE: CREATING THE BEST ECOSYSTEM LONDON’S DIGITAL FUTURE 36 RUSS SHAW, TECH LONDON ADVOCATES COLLABORATION SNAPSHOT: 50 EXCELLING WITH HELP FROM MICROSOFT OUR VIEW: PAYMENTOLOGY & MICROSOFT NO SPECTATORS 40 52 PLAYING IN THE RIGHT SANDBOX OUR MEMBERS ANDY MAGUIRE, HSBC 54 44 OUR TEAM 56 OUR SPACE 58 BRITAIN’$ BILLION-DOLLAR OPPORTUNITIES 6 7 LEVEL39 THE HOME OF BILLION-DOLLAR AMBITION INTRODUCTION BY BEN BRABYN, HEAD OF LEVEL39 anary Wharf is a beacon of These are fundamental issues British industry. The iconic that cut to the heart of the future pyramid that crowns One of finance. Technology has made CCanada Square has become financial services more affordable, synonymous with London’s position accessible and efficient than ever at the summit of global finance. before, leaving the banks facing But there is trouble brewing. In the a cliff-edge of digital disruption. boardrooms of the world’s largest Meanwhile the global economy financial institutions, management hangs in the balance. The shifting teams are grappling with challenges sands of Western politics and that threaten the continued success the rampant growth of the Asian of the industry. market are fuelling unprecedented LEVEL39 HAS international competition. ESTABLISHED The answers to these billion-dollar problems are closer than they might These are serious threats, grown- ITSELF AS think. And it’s the CEOs based at up problems, and billion-dollar Canary Wharf who have the best challenges. But the financial THE HOME OF chance of redemption. But the institutions in Canary Wharf AMBITIOUS scale of the challenge cannot are better placed to meet these be overestimated. challenges than any other. BUSINESS hosted senior political figures from the UK and around the world, CEOs of the world’s largest financial institutions, VCs from the most significant tech funds and ambitious entrepreneurs relentlessly focused on innovation, scale and growth. From a vantage point at the centre of this orbit, we have a unique insight into the opportunities and challenges facing the full ecosystem that fuels London’s fast-growth tech companies. Whilst a year of unprecedented geopolitical turbulence has obvious ramifications for the industry’s appetite for investment and risk, what strikes me is the sense of hardened resolve, of stiffened sinews and the relish of overcoming adversity amongst our community. For every problem, our ambitious startup and scale-up community at Level39, has an answer. There is, however, more to Because amid this uncertainty, 200 be done. For the first time in entrepreneurial companies have centuries, London’s position as an been working tirelessly to solve them internationally significant centre – at Level39. for business is at risk. The financial institutions and global corporates In the four years since its launch, upon which so many startups, Level39 has established itself as the professional services firms and home of ambitious business. What employees depend are struggling began as a handful of entrepreneurs to respond to the twin challenges of seeking to bring technology to digital disruption and international finance has built momentum, competition. thrived, and grown into a cohort of dynamic startups and scale- Put another way, if banks don’t ups tackling vital problems from equip themselves with the cybersecurity to financial inclusion, technologies which transform artificial intelligence to blockchain. their core functionality, customer offerings, acquisition and behaviour, And we’ve had quite the year. world-class cybersecurity In the past twelve months we have capabilities, resilient and secure BRITAIN’$ BILLION-DOLLAR OPPORTUNITIES 8 9 LEVEL39 payments infrastructure – and of the world’s financial services take steps now to consolidate IT budgets. THE relationships with finance’s TIME FOR outstanding growth market – Asia These are Britain’s billion- – they will fail. Embracing these dollar opportunities – forging SPECTATING innovations won’t just enable connections between the banks financial institutions to equip and incumbents and tech startups IS OVER themselves for Brexit and changing and scaleups. customer behaviour, but will solidify London’s position as a financial Through relentless ambition, services leader. Level39’s members are already realising the potential of this The constituent parts for future opportunity. Some relevant success already exist. Tech examples are showcased entrepreneurs are driving throughout this report. Token, innovation in digital specialisms for example, allows banks with unlimited potential for scale. to generate revenues from Many financial institutions are programmable money and now investing in technology solutions sits on the Tech Advisory Board of and doubling down on international HSBC. A product which answers relationships. However, this a specific challenge faced by all process needs to be approached banks is immediately fit to drive with more urgency. sales and influence. The time for spectating is over; Meanwhile, cybersecurity firm startups need to focus on customer Digital Shadows is busy scouring engagement through product the dark web to alert swathes market fit and decision makers of large corporates to the at banks need to open their cheque vulnerabilities they have and books. Breaking down the barriers risks they face. between startups and corporates to unlock their potential is the role There are 200 similar stories within Level39 plays within the city’s the Level39 community – startups tech ecosystem. After all, selling to, and educating, global our entrepreneurs are within a financial institutions in the