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, GROUP

evel39, the most connected tech The ability to bring the world’s space in 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.

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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

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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

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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

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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

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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 UK five-minute walk of 30 per cent and abroad. Level39 is committed to creating to the continued mentor programme, a home for these billion-dollar placing ambitious influencers from ideas and making the connections the worlds of finance, policy and required to realise these billion- regulation among our members. dollar opportunities. After four years of growth, we know the The next five years will define the specific interactions which make future of London and the UK in this possible, focusing our efforts terms of industrial specialisms, on three key enablers: economic status and employment prospects. Hope lies in the Access to customers strength of our startup and Access to talent scale-up community and its Access to infrastructure proximity to incumbents willing to engage, take risks and invest. The facilities across three floors of One will continue I can say with confidence that to create the perfect environment there is no better home for these for billion-dollar ideas to grow ambitious entrepreneurs than between startups and corporates. Level39. Canary Wharf reinvented From the new Space39 refectory, London once and now, with the redesigned to encourage success of Level39 and increasing collaboration within our community, diversification of the entire Estate towards technology, it is set to do so again. HOPE LIES IN THE This is the story we have STRENGTH OF OUR sought to tell throughout Tech Central: Britain’s Billion-Dollar STARTUP AND SCALE- Opportunities – the challenges UP COMMUNITY AND overcome, connections made and opportunities grasped that ITS PROXIMITY TO sit behind all of our members and every billion-dollar idea. INCUMBENTS WILLING The following pages are an TO ENGAGE, TAKE RISKS optimistic celebration of our industry, and a rallying cry for AND INVEST those who want to be a part of it.

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We asked Level39 members to help us take the temperature of the fintech landscape – highlighting billion-dollar problems and billion-dollar opportunities.

BILLION-DOLLAR PROBLEMS

Do you think London has an ecosystem capable of producing a critical mass of globally successful startups? 90%

Yes 90% not sure 8% no 2% BELIEVE LONDON IS

What are the biggest risks to growth facing global corporates CAPABLE OF in London’s financial and professional services sectors? PRODUCING shortage of talent 19% other 9% A CRITICAL lack of investment in r&D 17% lack of innovation 9% MASS OF

international competition 15% obstructive regulation 6% GLOBALLY SUCCESSFUL digital disruption 15% lack of government support 0% TECH market saturation 11% STARTUPS

What are the biggest challenges facing startups in london? access to investment 25% other 15%

shortage of talent 23% office rent and space 13%

access to customers 19% infrastructure 6% BILLION-DOLLAR OPPORTUNITIES

which of the following specialisms do you think financial institutions need to invest in more urgently?

cybersecurity 30% other 15%

data science 28% robo-advisors 4%

financial inclusion 17% mobile payments 4%

Which of the following technology verticals do you think will attract the most investment in london over the next five years?

fintech 26% health tech 7%

machine learning 22% vr/ar 7%

data analytics 20% other 4%

cybersecurity 13% retail tech 2%

Which markets do you think will be most attractive to british tech startups looking to expand internationally in the next five years?

us 32% other 6%

asia 28% africa 4%

europe 26% latam 4% 30% BELIEVE INVESTMENT IN CYBERSECURITY IS THE TOP PRIORITY FOR FINANCIAL INSTITUTIONS

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BILLION-DOLLAR OPPORTUNITIES OPPORTUNITIES

DEFINITION: Financial institutions have billion-dollar problems that can be answered by tech innovation. Connecting banks with startups creates billion-dollar opportunities for entrepreneurs, financial services and the British economy.

22%of Level39 members named machine learning as the technology vertical most likely to attract investment in London over the next five years.

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EMBRACING DISRUPTION: FUTURE-PROOFING FINANCE

t’s crunch time for London’s Even closer to home, the challenge financial services sector. posed by digital disruption has been Having survived the banking keeping banking bosses awake at Icrisis, the industry has been night. Customer expectations have making a steady recovery for the been transformed by the internet past few years, moving at a safe and the convenience offered by pace as it picks up the pieces. But new technology. They’re restless. outside influences are about to force And the fintech industry has quickly its hand. The looming threat posed risen out of nowhere to meet these by Brexit is bringing the sector’s expectations – increasing the digital challenges into sharp focus pressure on the incumbents. and inaction is no longer an option. Our survey of Level39 members Article 50 is causing anxiety pointed to access to talent, lack of in the City. London’s seemingly investment in R&D, international unshakable position on the global competition and digital disruption as financial stage may not weather the the biggest risks to growth faced storm if the world’s largest banks by global financial incumbents. move their headquarters to Frankfurt. As our banking industry limbers up to deal with the fall out from Brexit, This hasn’t gone unnoticed. it can’t afford to have any chinks in When the Global Financial Centers its armour. The stakes are high Index was published in March, and the requirements to transform London’s average score had legacy systems, find new revenue dropped by 13 points. It retained its streams and offer better services position at the top of the ranking, for customers are fast becoming just ahead of New York, but in billion-dollar problems. the wake of Brexit and all of its uncertainty, Singapore and Hong Luckily, while there are very few Kong were narrowing the gap. who can predict or stop the effects BRITAIN’$ BILLION-DOLLAR OPPORTUNITIES 16 17 LEVEL39

of Britain’s exit from the EU, the and chief executive of cross- financial services sector isn’t border money transfer company facing digital disruption alone. TransferGo. THE LOOMING An army of fintech startups are THREAT POSED working on billion-dollar solutions “However, the more innovative a stone’s throw from the world’s banks see a future built around the BY BREXIT largest banks. Level39, at the consumer and not about building heart of Canary Wharf, is a thriving monopolies. Consumers now have IS BRINGING environment of ambitious change- a free market to choose from, and THE SECTOR’S makers, just waiting to turn billion- they will go for the best service. dollar problems into opportunities. Banks must be innovative DIGITAL to keep these customers.” “Some traditional banks are still in CHALLENGES denial and desperately wish to keep Driving some of the banks’ INTO SHARP their existing business models,” says technology requirements is the Daumantas Dvilinskas, co-founder revised Payment Services Directive FOCUS BANKS CAN BENEFIT FROM THE ABILITY OF STARTUPS TO INNOVATE AND BUILD TECHNOLOGY RAPIDLY AND EFFICIENTLY

(PSD2) from the EU. This data-driven a billion-dollar opportunity for banks directive aims to drive increased with the right mindset. And there competition, innovation and are plenty of these out there. Banks transparency across the European from all over the world are working payments market and requires closely with fintech companies to banks to grant third-party providers find the solutions they need. access to customers’ online account and payment services. Inaction is “Banks can benefit from the ability not an option and banks have until of startups to innovate and build January 2018 to respond. technology rapidly and efficiently. By collaborating with fintech PSD2 poses a huge opportunity for companies we can offer more and fintech companies. Often referred to better products to our customers,” as open banking, the directive lowers says Alexa Fernandez, new digital the barriers to market entry, putting businesses at BBVA. banks’ customer relationships within the grasp of these newer businesses. “In addition, fintech companies While it may seem like bad news for can help the industry with many the banks, if they are willing to work of the challenges that are difficult to with fintech firms, PSD2 could offer solve individually. Identity, artificial opportunities for them too. Fintech intelligence, cybersecurity, low firm Token is already offering one interest rates and financial inclusion such connection. are just some of the examples.”

“We are creating an open This kind of collaboration can banking platform which will become one of London’s new bring new payment capabilities strengths. The UK capital has for consumers, merchants and become a major hub for fintech. corporates” says Todd Clyde, chief Add this to the already world- operating officer, Token. ‘Banks leading financial services cluster will be at the centre of this new and you’ve got an ecosystem which payment rail thanks to PSD2 allows new players and incumbents and can seize this opportunity alike to thrive – meeting billion- to create new revenues.” dollar problems head on. As the country re-asserts its place on What at first seemed like a billion- the world stage, this is exactly dollar problem, quickly becomes what the industry needs.

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COLLABORATION SNAPSHOT: FORGING A SPECIAL RELATIONSHIP

TODD CLYDE, CHIEF OPERATING OFFICER, TOKEN EXPERT VIEW

BANKS AND CUSTOMERS HAVE YET TO REALISE WHAT OPEN SECURE ACCESS WILL DO FOR THIS INDUSTRY

here’s something exciting “Steve’s last company was focused on the horizon. Todd Clyde, on creating a single, secure sign chief operating officer of San on, called OneID. He soon realised TFrancisco-born startup, Token, payments was the killer application sees big opportunities for banks for that capability, so he then thanks to EU payments directive, founded this company,” explains PSD2. “First there will be a rush by Clyde. “We focused on creating a banks to comply, and then a land common, secure protocol for moving grab for new opportunity,” he says. value over the internet. Instead of “Banks and consumers have yet to having 100 different payment rails, realise what open secure access will we can use the internet as a new do for this industry.” payment rail with a secure protocol for transferring value.” Clyde has every right to be bullish. He and Token founder Steve Six months into Token’s mission, Kirsch have a strong pedigree in the news about PSD2 grabbed the spotting trends, starting and exiting attention of the Silicon Valley startup. successful businesses. Clyde spent “It basically mandates exactly what ten years at Accenture before our software does. So we set up a spending the next twenty working base in Level39 and have been solely in technology startups. focused on the UK and Europe ever since.” Kirsch meanwhile is something of a Silicon Valley veteran. He wrote The PSD2 directive may be music the first email programme for the to the ears of ambitious fintech internet before he even graduated startups, but it has set a challenge from MIT. He later founded one of the for incumbent financial institutions. first search engines, called Infoseek, “The banks have to consider whether which was acquired by The Walt this is an opportunity or a threat,” Disney Company. Six companies and says Clyde. “We’ve been meeting two billion-dollar exits later, he came with them and discussing what it to start Token. means and what their options are.

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“Those choosing to do the bare banks thought leadership and new minimum to comply are facing a technology but it’s not because problem and are going to open up banks lack the ability themselves, a giant pipe into their account base. it’s because of the amount of But those going on the offensive can systems and existing infrastructure look at creating new revenue and they have in place. HSBC has protect against disintermediation.” 55 different core systems, so to upgrade to one core it would be One bank already leveraging the very difficult. support of Token is HSBC. The bank has invited founder Kirsch to “Challenger banks can wipe the slate join its technology advisory board. clean from a technology perspective “HSBC is definitely on the offensive,” and potentially offer a better says Clyde. “We have had many customer experience and product. conversations with them exploring PSD2 allows new capabilities new business models which will be to overlay a bank’s existing enabled in a post-PSD2 world. infrastructure and will therefore As a result of that, Andy Maguire enable the large banks to innovate the COO asked our founder to be at a faster pace.” on the technology advisory board.”

Clyde is pragmatic about the threats THE BANKS HAVE TO facing the big banking institutions, but he’s quick to point out that CONSIDER WHETHER fintech-style solutions aren’t beyond THIS IS AN OPPORTUNITY a bank’s capabilities - there are other powers at play. “Fintech offers OR A THREAT EXPERT VIEW

Collaboration between banks and the fintech community is clearly FINTECH OFFERS BANKS important. But Clyde understands THOUGHT LEADERSHIP better than most how difficult it can be to get things done. “Dealing AND NEW TECHNOLOGY with banks can be a blessing and a curse,” he says. “The blessing is BUT IT’S NOT BECAUSE that they are customers for life, and BANKS LACK THE the curse is how slow they move and how thorough and diligent they ABILITY THEMSELVES must be in selecting a partner. I pity the small startup who thinks It might not be easy, but it seems fintech is a quick and easy path London and the UK are in front to success. They need to prepare when it comes to fintech adoption for thorough evaluations and long and Clyde does not see this sales cycles.” changing anytime soon. “The banks here are leading the way, In the future, Clyde sees more especially in open banking. For a cooperation between banks and fintech company, signing the big UK institutions like Level39: “It’s been banks is a jump-start – they’re very a valuable partner for Token, not important from a market-leadership only by providing a brilliant work perspective. I can’t say what impact location but also by creating a Brexit will have but the bank fintech hub, connecting us to leadership and the fintech startups potential customers and providing are still here and the appetite for air-time in the press.” better solutions is strong.”

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IDEASBILLION-DOLLAR DEFINITION: The problems facing banks can be answered by specific tech specialisms. IDEASVerticals such as fintech, financial inclusion, blockchain and cybersecurity will produce the next generation of billion-dollar ideas.

30%of Level39 members think the technology vertical financial institutions most need to invest in is cybersecurity.

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EMBRACING INNOVATION: SCALABLE SOLUTIONS

he Libor rigging scandal “In many cases they had an inkling caused huge embarrassment these things were going on but for the financial services their checks weren’t working Tindustry when it broke back effectively and it was costing a lot in 2012. As the incriminating of money and reputational damage. messages started to surface, We have been able to apply our the banks involved were left technology to analyse the internal wondering how this could have communications inside the banks happened undetected. and find interactions that look suspicious.” But thanks to artificial intelligence (AI) firm Digital Reasoning, it will Machine learning or AI is just one be easier than ever to stop it from of the many burgeoning strands of happening again. The company’s fintech which are offering billion- technology understands and dollar solutions to London’s financial analyses human communication services industry. The harnessing of and can find targeted information technologies at the heart of fintech in large quantities of data. areas such as AI, cybersecurity, financial inclusion and blockchain “When we started talking to will help banking bosses sleep easier financial services companies, at night. As collaboration increases they were dealing with the after between the pioneers in these effects of crimes committed by sectors and large corporates, many their own employees,” says James of the challenges faced by these Ollerenshaw, head of content incumbent players will be solved. and thought leadership, Indeed, according to our survey, Digital Reasoning. 22 per cent of Level39 members see THE HARNESSING OF machine learning as the tech vertical most likely to attract investment in TECHNOLOGIES AT THE the next five years. Cybersecurity HEART OF AREAS SUCH was top of the list for 13 per cent. AS AI, CYBERSECURITY, Digital Shadows is one such cybersecurity firm, that helps FINANCIAL INCLUSION companies to understand what risks they face and what their online AND BLOCKCHAIN WILL footprint looks like. It searches the HELP BANKING BOSSES dark web, looking for vulnerabilities in digital infrastructure and pointing SLEEP AT NIGHT to conversations attackers might

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DR LINUS ETUBE, CHIEF OPERATING OFFICER & DR JOY BRAUN, CHIEF EXECUTIVE, AINFIN

be having about a company’s Another branch of fintech which critical functions. we’re likely to see more of in the coming years is financial inclusion. “Cybersecurity is front of mind Companies such as AinFin and at the moment. We’ve tripled Redcloud are both working to bring in size in the past 15 months the kinds of services that we take alone,” says Becky Pinkard, VP for granted, to previously unserved service delivery and intelligence people in developing countries and operations, Digital Shadows. 17 per cent of Level39 members feel “The reason it’s taking off is that it is an area of urgent importance as a human race, we’re getting for incumbents to invest in. used to the internet. We’ve had it in our lives for the past decade and “We want to bring about real a half and we’ve reached a tipping structural change in the way people point where we’ve started to realise access commercial services, the consequences of our starting with developing markets digital actions.” where there is the greatest need,” says Dr Linus Etube, This is certainly reflected in our chief operating officer, AinFin. survey results. Cybersecurity topped “There is a reason financial the list of specialisms our members institutions are not able to reach believe financial institutions need out to the unbanked. For banks in to urgently invest in. Africa the relative cost of doing WE’RE DEFINITELY PART OF AN EMERGING ECOSYSTEM AND BULLISH ABOUT THE POTENTIAL OF BLOCKCHAIN

so is huge compared with banks “We’re definitely part of an emerging servicing those in Europe. If you ecosystem and bullish about the want to deliver physical cards to potential of blockchain,” says people across the African continent Danny Aranda, managing director you’ve got a logistical nightmare. for Europe at Ripple. “It’s not just We deliver access to financial about us. We are very interested in services by using tools people seeing other players in the space already have - smartphones. be successful. We dedicate a lot of By downloading our app, people resource towards an initiative called can turn their phones into Interledger, which is a platform payment processors.” for inter-operability between payment systems.” Etube is quick to point out the technology Ainfin uses isn’t beyond Collaboration, it seems, is not just the reach of the banks. “We’re not central to the relationship between reinventing the wheel, we’re using large corporates and startups, but best-in-class technology in the to the success of these individual most efficient way. We don’t have branches of fintech. By creating a a legacy system holding us back.” busy ecosystem of these companies, Level39 enables the kind of ideas This year we’re also likely to hear sharing these innovative more about the commercial use companies require. of blockchain technology. The rise of cryptocurrencies has been And with such a raft of exciting talked about as a disruptive force technology in the pipeline, there in the financial services sector is cause for optimism. Whatever for a number of years but with challenges the banks might face now the emergence of bank-friendly and in the next few years, there are applications, we’ll see it move swathes of fintech startups with the further into the mainstream. solutions they need to meet them.

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COLLABORATION SNAPSHOT: CHAIN REACTION

DANNY ARANDA, MANAGING DIRECTOR EUROPE, RIPPLE

he team at Ripple remember “At that time, a lot of the the moment banks started to blockchain companies were more pay attention to blockchain. consumer focused and looked to TIt was around the time of the displace current infrastructures Sibos conference in Boston back as opposed to collaborating in 2014. “I think it was the first time with them.” they began to think about payments and transaction infrastructure as Ripple works with banks to the main use case for blockchain,” transform how they send money says Danny Aranda, managing across the world through its director, Europe at Ripple. “Our technology. Launched in 2012 conversations at the conference in San Francisco, the company definitely started gaining more moved to Level39 last year so it traction for the company.” could concentrate on the sizable European portion of the market. One such conversation was with “We are new in town and we Santander. Members of its innovation want to be part of the mix,” says group were at the conference and Aranda. “Level39’s position as a were taken with what they heard centre for activities in the fintech from Ripple. “I got the feeling it space means it’s a great place was the first time they had met to be, whether it’s about running a blockchain company that was into clients, new prospects or focused on enterprise uses and just focusing in on the industry. trying to collaborate with an It really helps us to be embedded institutional audience,” says Aranda. here in the UK fintech ecosystem.” EXPERT VIEW

WE ARE NEW IN TOWN AND WANT TO BE PART OF THE MIX. LEVEL39 IS A GREAT PLACE TO BE

Ripple’s USP is its focus on cross- border payment and settlement. Solving a fundamental problem has given the company a truly global client base, working with 150 banks across the world, with 30 of those already using the platform to move money. “This group of banks is the first to offer a blockchain based service to their own retail and corporate clients,” says Aranda. “We have been razor focused on ensuring what we deliver is not merely for testing or experimentation but about delivering something that solves a real and pressing problem.”

Ripple’s play in the transaction banking space is set to pay off. According to recent data from the FT, transaction banking has become one of the biggest drivers of revenue for global banks since 2011, overtaking equities and fixed income divisions.

“Ten years ago banking was very focused on areas like investment banking,” says Aranda. “I think we have hit on a strategic area of business within the banks that they are really interested in growing. A LOT OF BLOCKCHAIN And growth is the operative word here. We are not just about delivering COMPANIES LOOKED TO a new and better system, but a system to do things you would not DISPLACE THE CURRENT have done before. We expect that INFRASTRUCTURES AS OPPOSED blockchain systems will unlock new reasons for people to transact and TO COLLABORATING WITH THEM increase volumes significantly.”

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The opportunity Ripple represents Of course, the more banks use for traditional banking institutions Ripple, the better the product WORKING is clear. But it is perhaps its becomes. “This is somewhat of WITH THE attitude that has helped Ripple a networks business; Ripple is to win the trust of banks like enhanced if there are others using BANK HAS Santander. “The traditional view is it,” explains Aranda. “The very the incumbents are old and slow large tier one banks might start HELPED US TO and the new startups are fast and by using Ripple between branches, IMPROVE OUR will displace them,” says Aranda. but certainly banks want to be able “We think particularly in highly to use the technology to transact OFFERING TO regulated markets like financial with other parties as well.” services, the story is more THE MARKET nuanced and complex than that. Aranda admits it’s not always easy It is actually going to require more working with larger institutions, collaboration to change how the after all, getting a bank to upgrade world moves value.” its infrastructure is a tall order. With lots of stakeholders and risks Following their meeting in Boston, involved, many pieces must fall into Santander sent its UK chief place for something to get off operating officer Juan Olaizola to the ground. San Francisco to find out more – the bank has been working closely But Ripple has found one strategy with Ripple ever since. that seems to work. “I think the number one thing is to have a clear According to Aranda, collaboration proposition,” says Aranda. “If you with Santander has had huge approach the market with a general benefits for the young company: proposition, it makes it less tangible “When you first launch a product, to all the different stakeholders. it will almost certainly have some You must present the problem your issues, working with the bank has technology solves, where it is headed helped us improve our offering to in the long-term and where the to the market.” opportunity is. If you can do this getting all those stakeholders on board becomes a lot easier. EXPERT VIEW

THE VIEW FROM SANTANDER

ED METZGER, HEAD OF TECHNOLOGY INNOVATION SANTANDER UK

e were first introduced to make sure it will work in the interest IT’S VITAL Ripple through our investment of our customers. We’ve had great FOR THE UK arm called Santander feedback and seen widespread WInnoVentures, which has usage, now we’re exploring next TO HAVE A a pot of around $200m to invest steps, looking at how we can build in startups. A number of years on the successful pilot. FLOURISHING ago it looked at Ripple and saw a ECOSYSTEM financial services game-changer. Level39 has offered banks an InnoVentures made an investment opportunity to meet with innovative OF COMPANIES and on the back of that, we started businesses, big and small. We’ve to look at how its technology could been to various events there and WILLING TO solve customer problems here it’s a fantastic place for startups DEVELOP AND in the UK. to get constructive feedback in a supportive environment. As an DELIVER NEW Our collaborative focus is around industry we are only just scratching understanding how we can use the surface and beginning to harness SOLUTIONS innovation in business models the huge benefits that fintech offers FOR OUR and in technology to truly help our our customers. customers. There is a perception CUSTOMERS among customers and across the We are committed to supporting industry that international payments innovation in the UK and see it aren’t optimised and could definitely as essential and the foundation be done in a smarter way. So we’re upon which the country will build a working with Ripple to supercharge successful technology industry. that transformation. It’s vital for the UK and global financial services scene to have a So far, we’ve created a staff flourishing ecosystem of companies pilot, offering access to Ripple’s willing to develop and deliver new technology to test how people solutions for our customers, we want interact with the proposition and to play a pivotal role in that change.

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BILLION-DOLLAR ECOSYSTEM ECOSYSTEM

DEFINITION: Breaking down barriers and making connections will put startups in front of customers and encourage banks to invest in innovation.

90%of Level39 members believe London has a successful startup ecosystem.

34 35 LEVEL39

EMBRACING CHANGE: CREATING THE BEST ECOSYSTEM anary Wharf is home to the to increase fintech partnerships world’s largest and most in the next three to five years. powerful banks, the combined These young firms are often Cmarket cap of the tenants creating technology designed is more than $2.5 trillion. But as to be used by the banks themselves. we’ve seen, they are not immune to It also remains the case that if outside threats: be that from digital fintech firms want to scale quickly, disruption, political instability or working with the experienced regulation. They face billion-dollar financial institutions and their problems. But without doubt, their customers is one way to do this. neighbours in Level39, some of the best fintech minds in the world, “Our business would not exist hold billion-dollar solutions. if it weren’t for banks,” explains The challenge that remains is to Daumantas Dvilinskas, co-founder ensure these two parties can work and chief executive of TransferGo. together successfully. “So we are not against banks – that’s silly marketing talk by other players. The previously held assumption – Our business is based on building that competition to the banks from a very good business relationship fintech would be the big driver of with them. We bring people from meaningful change – no longer cash into digital banking – with this prevails. Collaboration, rather in mind, we are actually accomplices than aggressive competition, has with banks.” emerged as the solution of choice. Collaboration between all parties The idea that fintech companies helps to create a healthy ecosystem. are working against incumbent It can help incumbent banks to players is, in most cases, incorrect. make cost efficiencies, provide new According to research by PWC products and services for customers 82 per cent of incumbents expect and repair some of that lost trust. Meanwhile sharing ideas and insight can help improve the utility of new technologies - take the example of Ripple from the previous chapter, working with peers in the blockchain OUR BUSINESS WOULD space to secure interoperability. NOT EXIST IF IT WEREN’T “We want an environment where ideas are shared and an open FOR THE BANKS dialogue is encouraged,” says

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WE’VE REACHED A TIPPING POINT FOR THE UK FINANCIAL SERVICES INDUSTRY. THE CHALLENGES ARE CLEAR. BUT ONE MAN’S CHALLENGE IS ANOTHER’S OPPORTUNITY

Mike McCloskey, co-founder of address a particular problem. energy platform Utilidex. “People If more doors are open, fintech will who work in silos can become be able to show the full extent of quickly blinkered about how they value it can deliver in a very think their business should be run. short period of time.”

“Another thing we’ve learned ClauseMatch has a successful from being at Level39 is that relationship with Barclays, which is a strong ecosystem can speed already bearing fruit for both sides. up the process of your research - “We’re helping the bank to automate our questions about a certain policy management and further technology might have already streamline compliance processes been answered elsewhere.” to boost efficiency, save time and money and reduce risks,” says The benefits of a collaborative Evgeny Likhoded, chief executive ecosystem are clear. But this and founder of ClauseMatch. conclusion alone will not lead to success. There is work to be “Crucially, our work with Barclays is done in making the most of a very important use case for us – as cross-pollination. we are able to advance our product in a real environment, applying it live “Collaboration between banks and at one of the largest global banks.” fintech startups could be easier with a change of mentality – abandoning Level39, with its position in both the traditional bureaucratic approach heartland of traditional banking and and fear of innovation,” says Anna the centre of fintech, is well placed Antimiichuk, communication lead to facilitate this sharing of ideas. at smart document management “It’s not just a good address to have,” startup ClauseMatch. says Rashee Pandey, marketing and communications manager, Bankable. “This should be substituted with open thinking and a common sense “You can have a casual conversation approach towards which solutions with a decision maker from a tier 1 bank in the Level39 environment problems our incumbent banking whilst still presenting your thoughts institutions face. and ideas, instead of attempting to get a formal meeting in the diary. A whopping 90 per cent of Sometimes it’s all about being in the Level39 members believe London right place at the right time.” has an ecosystem capable of producing a critical mass of globally We’ve reached a tipping point successful startups. for the UK financial services industry and the challenges are These ambitious entrepreneurs can clear. But one man’s challenge help the industry to be battle-ready is another’s opportunity. And for the years to come – asserting nowhere has this been more overt Britain’s position as an innovative than in London’s fintech ecosystem nation with the ingenuity to succeed – which thrives on solving the on the global stage.

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COLLABORATION SNAPSHOT: EXCELLING WITH HELP FROM MICROSOFT EXPERT VIEW

ayment processing startup where banks use physical data Paymentology has been centres, it’s an obvious step forward. working closely with the Pstartup team at Microsoft for Shane: I think we’re genuinely the past 18 months, having met unique. There are fintech companies through an open forum at Level39. everywhere building apps and We caught up with Shane O’Hara APIs. There certainly aren’t many and Akshay Patel, co-founders involved in issuer side payments, of Paymentology and Nick Page so I think we are a good addition to and Stephanie Georgiou from the Microsoft family. We’ve been Microsoft’s startup partnership working with Microsoft for a year and team to hear about how their work a half, migrating our products onto together is helping the startup get the cloud and creating a payment ready for market and much more... process that is more secure and vastly more scalable than the traditional processors. PAYMENTOLOGY Akshay: Nick, Stephanie and the Akshay: We met the team at team have given us significant Microsoft through Level39, during scope to expand unbuffered, with a session where we had a few no upfront cost. They’ve opened up minutes to pitch to them. We have access to expertise in the payment an advanced issuer-side payment security standard (PCI) and cloud processing platform, which side, which has meant we can essentially approves or declines pressure test the platform and transactions at the point of sale. make sure what we’re saying about Security and flexibility are our core security is 100 per cent the case. USPs, along with the fact that we’re It’s invaluable. fully cloud enabled - and in a world Shane: Being part of the wider Microsoft community has also helped us to gain insight into how NICK, STEPHANIE other ISVs [independent software AND THE TEAM HAVE vendors] are doing things and has given us access to their client base. GIVEN US SIGNIFICANT On the other side, there is still such a mixed attitude towards cloud SCOPE TO EXPAND uptake – I think that’s another reason STEPHANIE GEORGIOU, we are attractive to Microsoft; SHANE O’HARA, NICK PAGE UNBUFFERED, WITH & AKSHAY PATEL we are helping to break down NO UPFRONT COST those barriers.

BRITAIN’$ BILLION-DOLLAR OPPORTUNITIES 40 41 LEVEL39

It’s funny, we launched Paymentology in 2015 and we’ve OUR PLAN WAS TO KEEP been in Level39 since the start. A LOW PROFILE WHILST Our plan was to keep a relatively low profile whilst we progress through WE PROGRESS THROUGH the early platform build phases, but it’s impossible not to rub shoulders THE EARLY PHASES, BUT with the right clients here. We’ve IT’S IMPOSSIBLE NOT TO been able to knock on all of the right doors and now have a pipeline RUB SHOULDERS WITH of potential customers which we can activate once we’re ready - THE RIGHT CLIENTS HERE all established here on Level39. we can certainly help them there MICROSOFT because we have those relationships - the big banks are our customers. Nick: Startups require different We use our customer and partner things at different times. When we networks to help startups as their first met Paymentology their need products become ‘customer ready’. was for technical support. They’re working hard on their We’ve been engaging with Level39 security functionality and we’ve been for quite a few years now - in able to help them through that. different capacities. At first our enterprise group, which looks after But the next steps will be to start some of the top businesses in the engaging with larger institutions and UK, was in touch with the team here. EXPERT VIEW

More recently, Microsoft has had a stronger focus on startups, THE REASON WE DO making this relationship even ALL OF THIS IS SIMPLE. more important. OUR CUSTOMERS GET Stephanie: I spend a lot of time at Level39 meeting with the businesses ENORMOUS VALUE here, understanding their solutions and establishing how they want to out of these connections. A sizeable work with Microsoft. We have an percentage of insight and new offering called BizSpark Plus, which ideas come from outside of a large gives startups free software tools, organisation. Our account teams technological support and brings engage with the key influencers and them into our ecosystem. decision makers in the business landscape. Knowing what is Nick: We’ve had BizSpark Plus for a happening in the industry, what while but we’ve made a shift in the startups are out there and which past year towards leveraging our innovations are coming through account teams and their enterprise empowers these account teams clients in a more targeted way. to offer valuable insight. We can now plug these startups into our network - surfacing their Of course, we also want these solutions for our clients. startups to use our technology but we understand that we can’t just sell The reason we do all of this is simple. our wares, we’ve really got to show Our customers get enormous value our value first.

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PLAYING IN THE RIGHT SANDBOX

ANDY MAGUIRE, CHIEF OPERATING OFFICER, HSBC

When Andy Maguire, chief operating big problems and now we have lots IF SOMEONE officer of HSBC, first suggested that of bright people working on them IS ABLE TO banks could collaborate with fintech – if someone is able to help, we the companies people thought he was incumbents need to be humble and HELP, WE THE mad. “Everybody laughed and said, use that.” ‘they’re out to eat your lunch.’ But INCUMBENTS we’re a couple of years on now and it Rather than buying fintech NEED TO BE has proven to be true,” he says. companies outright (“banks are where fintech startups go to die”) HUMBLE AND Indeed it has and HSBC has not – Maguire recommends other forms held back, becoming a big player of working relationship: USE THAT in the fintech space and utilising collaboration to great benefit. “Our position is to use the product and become a customer, or to buy “Fintech firms generally don’t want stakes in a company – but we only to be banks, they don’t want our do this if we’re deeply committed balance sheets, they don’t want to the application in a big way. collections and recoveries and they The reason we’d look at investing certainly don’t want our valuations,” is that we actually want to work says Maguire. with the company and help to shape and direct the technology.” “Realistically, banks are a great way for fintech companies to get rich, we The bank works on about 70 per cent and other incumbents have loads of of its own tech – outsourcing the EXPERT VIEW

BRITAIN’$ BILLION-DOLLAR OPPORTUNITIES 44 45 LEVEL39

remaining work. So what exactly are which offers helpful prompts to the big problems that HSBC looks users, letting them know if they’re for help with? about to go overdrawn and reminding them to save. “Just short of becoming “From the front end to the back your mother,” laughs Maguire. end, we’re increasingly working with partners to deliver various It doesn’t stop there of course, functions,” explains Maguire. the bank is looking into robotics, “There’s a lot of work around automation, machine learning and UX and UI because banks are financial crime compliance. famously not great at really good “We have to be at the cutting edge customer experience. of transaction monitoring, we do a lot of hard work on that – because we “There’s also a lot of work around have to. But it’s like looking for optimisation and the use of data. a needle in a haystack.” We have an advantage in that we have lots of it - both small rich data Maguire has a gauntlet to throw and big data - not all banks are down, however, pointing out that not focused on big stuff so if we use all problems have been solved and it well it’s very powerful.” he has a challenge for ambitious fintech minds: “Whenever I meet Data helped the bank launch a a super-confident, clever fintech programme called Nudge last year, person who thinks they can do anything – I always say, ‘if you can build me an optimiser for customers, which gives them the THE BANK IS LOOKING right combination of overdraft, credit card and personal loan, that is fully INTO ROBOTICS, compliant and gives you a great AUTOMATION, MACHINE conduct outcome – I will give you LEARNING AND $100 million.’” He is yet to find a solution. “People FINANCIAL CRIME come back in a few weeks, saying COMPLIANCE ‘oh it’s a bit harder than I thought!’” EXPERT VIEW

Cementing its dedication to place to live so it attracts IF YOU’RE technology, HSBC announced the a lot of smart international people. NOT PLAYING creation of its Technology Advisory There are so many big, complicated Board. The group, which includes issues. If you’re not playing in IN THE RIGHT the chief executive and chairman the right sandbox – and we in of Level39 member companies particular are a really interesting SANDBOX Token and Ripple, Steve Kirsch and sandbox – you won’t learn to play YOU WON’T Chris Larsen, get together a couple in the same way.” of times a year and are in regular LEARN TO contact with Maguire and his team. But one of the important elements of a healthy ecosystem, is a place PLAY IN THE “Those folks are real to share these ideas, argues SAME WAY practitioners,” explains Maguire. Maguire. Places like Level39 offer “They’re not swanning around in fintech companies and incumbents private jets, they’re sleeves-rolled- a space in which to bounce these up doers. We get together a couple big solutions off each other – and of times a year, once just to have find out if they’re on the right track. drinks with executives and once with the board – with plenty of “The most disappointing meetings phone calls in between.” I have are with people who think they’ve got the answer Maguire admits he’s been blown to everything,” says Maguire. away with the engagement from “They’re the people who haven’t the members. “They’ve been very been humble enough to go bounce generous with their time. It’s been their ideas off other folks. delightful to see them really getting into working with the bank, sending “You need to be hungry, which emails at midnight and getting stuck fintech companies typically are, into the various knotty problems.” but you need to be humble and smart. If you aren’t humble enough It’s these meaty issues that Maguire to investigate whether or not the believes keeps fintech talent thing you’ve designed solves a real pouring into the London ecosystem: problem, no matter how smart you “London is an incredibly vibrant are, then you’re in trouble.”

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BILLION-DOLLAR CONNECTIONS CONNECTIONS

DEFINITION: The collaborative interactions that turn billion-dollar ideas into business realities.

25%of Level39 members named access to investment as the number one challenge facing startups in London.

48 49 LEVEL39

LEARNING FROM SCALE: LONDON’S DIGITAL FUTURE

RUSS SHAW, FOUNDER, TECH LONDON ADVOCATES & GLOBAL TECH ADVOCATES EXPERT VIEW

hen I was general manager London’s tech sector has at Skype, a significant part successfully campaigned to make THE POTENTIAL of our growth strategy digital jobs recognised in visa routes, OF LONDON’S Wwas based upon customer introduce digital skills to the national referrals and recommendations. curriculum and take the message TECH I had seen the power of introductions that London is a global tech hub and community structures from my around the world. COMMUNITY AS time in Silicon Valley, where VCs A CAMPAIGNING and entrepreneurs constantly share The potential of London’s tech connections to further the success community as a campaigning force FORCE CAPABLE of the ecosystem. But Skype was capable of driving genuine change a revelation. has never been more important. OF DRIVING After years of almost entirely GENUINE The speed with which the company unhindered growth, we are under scaled was based upon the power threat. Levels of tech investment CHANGE of network effects – creating a dropped for the first time in five movement around a product that years during H2 2016, which has HAS NEVER people found easy to use, affordable been a significant ‘wake up’ call to BEEN MORE and innovative. Thanks to Skype, the sector about the geo-political the Silicon Valley model had been impact on the sector. IMPORTANT translated to Europe in the form of a consumer tech business model. The danger, however, is for London to adopt a ‘siege mentality’. The truth Tech London Advocates, my network is that everything that made London of over 4,500 tech experts, leaders a tech success is still here – the and professionals in the UK, is built fundamentals continue to be strong on this premise. I firmly believe that and vibrant. The tech community the private sector can address any needs to become a movement challenge, showcase any success dedicated to championing the sector and establish a global reputation and creating startups and scaleups when it rallies around ideas, leaders, that have the best runway to scale. and campaigns. This will involve sharing expertise, best practice and contacts London is uniquely positioned wherever possible. to benefit from network effects. Politicians and business leaders Clusters of tech startups such as often describe London as having Level39 are beacons around which Silicon Valley, Los Angeles, the private sector can mobilise. Washington and New York all in the These are key links within the same city. When the full spectrum of network chain and act as gateways the tech ecosystem – entrepreneurs, into vital groups of customers, investors and government – investors or influencers. come together they can achieve extraordinary things through little No-one believes the next five years more than open networks and a will be easy, but entrepreneurs will united voice. always find a home in London as long as we keep making connections, Over the past five years, we have nurturing ambition and aiming for seen this time and time again. billion-dollar companies.

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OUR VIEW: NO SPECTATORS

Over the last four years, Level39 has worked alongside some of the most successful companies operating in the verticals producing billion-dollar ideas.

The experience of accelerating growth for our members has taught us what is required to create a community where entrepreneurs, corporates and investors realise billion- dollar opportunities.

In order to empower the Ambition Ecosystem, there are certain characteristics, actions and commitments required:

FOR ENTREPRENEURS

KNEEL AT THE PURSUE FOCUS ALTAR OF PRODUCT CUSTOMERS NOT RELENTLESSLY 1MARKET FIT 2INVESTORS 3ON INNOVATION

Banks need technology Angels and VCs can seem The digital verticals with the services and they need them highly attractive. However, greatest potential for scale now. Their vast distribution don’t lose sight of the are not easy areas in which networks sit on the other importance of long-term to operate. Cybersecurity, side of complex procurement commercial relationships. mobile payments and procedures and legacy A good customer won’t pull blockchain are complex, systems. Digital innovations their funding out after three requiring huge levels of designed not to bring the years. All they want is the best expertise and time. These banks down, but integrate possible service – a pressure are not sectors powered by seamlessly, have the greatest that will bring the best out flat whites and MeetUps, potential for scale. of your company. but relentless ambition, dedication and innovation. FOR INCUMBENTS

TAKE OPEN HARNESS RISKS YOUR THE 4 5CHEQUEBOOK 6NETWORK

The innovation required to Businesses show commitment Understanding the startup embrace disruption and in one way only – opening ecosystem can be challenging modernise demands a their chequebooks and paying and many corporates are held mentality to which you are not for innovation. Accelerators, back not by a lack of good naturally suited – risk-taking. corporate venturing and intention, but ignorance of This cultural change needs to hackathons are good the market. London has an be led by CEOs, management practice, but incumbents unparalleled private sector boards and ambitious need to establish commercial network and startup talent individuals. The stakes are high relationships with startups. is out there if you look in the – personal embarrassment, right place. Ask advice, seek unprofitable investments – guidance and mobilise but failing to act could lead to the community. the decline of global banks and the financial industry. The time to act is now. FOR LONDON

SHOWCASE INVEST BUILD LONDON TECH ON I N BRIDGES 7THE WORLD STAGE 8TALENT 9

London’s continued position Immigration is under threat International expansion has as a financial powerhouse and visa routes are at never been more important, requires renewed commitment capacity. Home-grown talent and London needs to look from a range of stakeholders. is in short supply and digital beyond Europe for growth. We all need to celebrate the skills initiatives are operating Fintech Bridges are being success of London tech in locally rather than at scale. established to share international markets. Don’t Tech needs to call on Brexit partnerships and ideas with underestimate the strength of negotiators to keep borders the likes of Japan, China and organisations such as DIT and open for world-class talent Israel, many of which land London & Partners – other and invest in their young talent in Level39. Government needs countries don’t have the same with training, apprenticeships to support more of them, amplification infrastructure and mentoring schemes. and tech companies need in place and we need it more to start using them. than ever.

BRITAIN’$ BILLION-DOLLAR OPPORTUNITIES 52 53 LEVEL39

OUR MEMBERS

Level39 is the home for ambitious We’re here to help – whether problem-solvers. Our members that’s making the right introductions, range from pre-seed startups to facilitating mentoring or simply established global businesses – all offering a freshly baked cookie and a looking to benefit from Level39’s chat in the afternoon. As you can see, unique services and network. We’re our members span many sectors, always welcoming new faces and from big data to blockchain – but they take great pride in becoming part all have one thing in common – of each individual business story. the drive to make things better.

DATA QxBranch BLOCKCHAIN Cybrix

Advizzo Heckyl Applied Blockchain Cybus Global / Securus Global Aerospike Keyrus BABB Cybsafe Aimbrain Lighthouse8 Bitfury Digital Shadows AlphaQuants MapR Technologies BTL EclecticIQ Aston-Corp Mentat CapitalDigi Encap Security Big Data Scoring Modelogiq Cashaa Envision&Company CityFALCON OpenCorporates CEX Obrela Security Dexi.io Coinjar Pension Mandate Industries CueMacro Euklid QxBranch Pixelpin Datawatch Satoshi Systems Singular RedCloud Intelligence Digital Reasoning Tallysticks Technology SizeUp Draper & Dash UBS Red Owl Analytics Stockviews EyesClear Risk.Ident Symetrics Datatonic CRM Security Alliance Thalesians Derivitec Adacta Labs Secure Chorus The Sensible Edge Laboratories Corporator Signicat Code Company EMBonds Touchtech Trunomi Payments FinGenius CYBERSECURITY Xeridia Verimuchme Finlytics Critical Cyber Yodlee Systems Helixtap ENTERPRISE Flocash The Ground UP PRODUCTIVITY Project Cobweb Flywire UpSlide Token Cutover FMB Developments TransferGo MongoDB Foxberry REGTECH VoguePay HCE Service Invoke Software Welendus FINTECH Homegrown NUM Technology WiseAlpha 11:FS Huddlestock Plio Xenfund Advicefront Innovate Finance TAINA Techology XTB Limited Aicura Kuan Inc TRONIXSS Yielders Ainfin Madfoo3atCom Zenith One AMP Credit Manigo RETAIL Technologies ZetraSoft Money Berry Instantt Bankable Money Mover Proxad Chip OTHER Monuva ClauseMatch Accenture MYPINPAD SMART CITIES Cloud Lending Id3as Company Block Dox Solutions Outperform.Market The Boldmind Crowdstacker Payfriendz Entrepreneurship Institute Buzzstreets Crowd Tech Paymentology Funders EcoMachines Pollen Viking Venture Management Ventures Darwinex Quantstore eSmart Systems DealGlobe Qubitia PROGRAMMES Ekodenge Decimal Factor Revolut Innovation Norway ET Index doPay Ripple SILK Ventures Eurosender Doreming RiskSave XnTree Polysolar Dotography Technologies SEaB Energy ebankit RouteTrading PRODUCT STUDIOS Sensonomic eToro Silicon Investing DotSquares Tridify Finalytix Small Change intive Utilidex Finport Speedyr MobiLab Your Parking Space Firedrake Stylopay Consulting Netguru Tesobe (Bank in the Box)

BRITAIN’$ BILLION-DOLLAR OPPORTUNITIES 54 55 LEVEL39 OUR TEAM

Our team is the engine room of Level39, making the connections required to realise billion-dollar opportunities. This is their perspective on the growth opportunities that will define 2017.

AMY FRENCH STEFANO LORINI ECOSYSTEM DEVELOPMENT MANAGER ECOSYSTEM DEVELOPMENT COORDINATOR

AI and machine learning stand out for me I believe cybersecurity, fit-tech and AI are as billion-dollar opportunities. They have changing the world. AI can understand data, huge potential to be used across a range of consumer behaviour and patterns in an different industries which is why I believe unprecedented way, giving businesses they can be such transformational tools. a competitive advantage.

ASIF FARUQUE MARK DEVERRICK HEAD OF CONTENT AUDIO VISUAL

Technology which helps the billions of I believe in the growth potential of Level39’s people who are suffering from war, famine, specialisms – fintech, cybersecurity and disease, poverty and corruption should take retail tech – having seen the members grow precedence above all else. I look forward over the years, I only foresee more growth to all developments in those sectors. within these sectors as tech innovations continue to prosper at such a fast rate.

MUNA YUSUF ECOSYSTEM DEVELOPMENT COORDINATOR

Drawing from my academic experience in health and science, I believe in the power of health technology to change the world and become a globally-significant industry. JETTE LUTZ QAUNAIN MEGHJEE EXECUTIVE ASSISTANT TO BEN BRABYN HEAD OF SYSTEMS INTEGRATION

I see a great opportunity in sustainable living WebGL, virtual reality and edtech are all technologies such as smart city technologies revolutionary technologies. In particular and renewable energy but also through WebGL, as it allows advanced real-time 3D health and medtech as we all become more interactive experiences to be displayed on conscious of living healthier lifestyles. web browsers with no plugins, meaning that you can literally play a 3D game or navigate a virtual world on your web browser without downloading any apps or add-ons.

AMY TSANG VESELA VUKOVA ASSISTANT FINANCE AND PROJECT ANALYST ASSISTANT MANAGEMENT ACCOUNTANT

For me, the travel sector has huge untapped As health-consciousness gathers interest in potential. Airbnb being valued at $31bn populated cities like London and New York - says it all. Social media is another growth I believe the trend will spread and tools such opportunity – by combining with marketing as social media and wearable devices will it is creating hugely powerful outreach tools. turn this into the next big industry.

JOANNE TAYLOR ADAM LUK HEAD OF EVENTS HEAD OF FINANCE

I am most excited about the international I started my career working for large collaboration we are seeing take place multinationals and blue-chip corporations. within the tech industry at Level39. Seeing I know first-hand the need for the largest people from Japan, China, Israel working companies in the world to invest in alongside Level39 members is fantastic technology. Startups that understand the because this is how our members will purchasing process and offer software accelerate and expand. that is simple to integrate will be the future success stories.

BRITAIN’$ BILLION-DOLLAR OPPORTUNITIES 56 57 LEVEL39 OUR SPACE

43,401 VISITORS TO LEVEL39 IN 2016

THREE FLOORS IN LONDON’S LARGEST CONCENTRATION OF CYBERSECURITY STARTUPS

BANKS SPENT 148 HOURS WITH MEMBERS

38,000 COOKIES CONSUMED IN 2016

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12,000 CUPS OF COFFEE DRUNK EVERY MONTH

30% OF THE WORLD’S FINANCIAL SERVICES IT BUDGETS AT CANARY WHARF

37% MEMBERS IN FINTECH INVESTORS SPENT 93 HOURS WITH MEMBERS

80,000 SQ FT AT LEVEL39

ONE IN FIVE MEMBERS IN DATA ANALYTICS

BRITAIN’$ BILLION-DOLLAR OPPORTUNITIES 60 61 Level39 is the world’s most connected tech community.

We support fast-growth tech companies in three clear ways - giving access to world-class customers, talent and infrastructure.

Through expert mentors, access to Canary Wharf’s dynamic workspace, a packed events calendar and best-in-class facilities we help businesses achieve scale.

Owned wholly by the Canary Wharf Group, Level39 launched in March 2013. Since then, Level39 has grown from a simple idea into a three-floor, 80,000 square foot community space occupying the 39th, 24th and 42nd floors of One Canada Square.