Bi-Monthly October 2024
Berlin in “Aufbruchstimmung”: How HoFT.Berlin Aims to Transform The City’s Finance and Tech Landscape
The German language is famous for its ability to capture complex emotions and concepts in a single word, like Wanderlust, Zeitgeist, and, of course, Aufbruchstimmung. Aufbruchstimmung reflects a sense of excitement and optimism, the feeling that something new and transformative is about to unfold – exactly the spirit we felt at the official launch event of the House of Finance and Tech (HoFT.Berlin).
With more than 200 participants, the community celebrated the official launch of HoFT.Berlin last September. High-profile guests such as Mark Branson, President of BaFin, and Michael Biel, State Secretary at SenWEB, took the stage. Acknowledging the city’s success in becoming a European finance and tech powerhouse was an important part of the event, but as the community highlighted, there is still room for improvement. One critical pain point: simplifying regulation to reduce bureaucracy while fostering trust in digital finance. Things are already moving in the right direction – Mark Branson pledged at the event to speed up licensing processes, noting that “a quick no is better than uncertainty for a long period of time.” We’ll be keeping an eye on that, Mark!
Dr. Sebastian Schäfer
Managing Director of HoFT.Berlin
Dr. Sebastian Schäfer, Managing Director of HoFT.Berlin, has set his sights on an even bolder goal: to turn Berlin into a leading global epicentre of finance and tech. It sounds ambitious, but Schäfer is uniquely qualified to take on this challenge. Combining his background as a Japanologist and behavioural economist with his experience leading Hessen’s largest startup community, TechQuartier, for eight years, he brings a rare blend of cultural insight, economic expertise, and hands-on leadership to the task. Under his guidance, HoFT.Berlin is poised to not only provide a co-working space, but also bridge gaps between fintechs, regulatory bodies, and global markets – transforming Berlin into a true powerhouse in the global finance and tech ecosystem.
Scaling in the fintech space is not without its challenges. Startups must navigate Germany's strict regulatory landscape, build trust in a heavily regulated market, and compete with established financial institutions. Additionally, securing funding remains a significant hurdle. In 2023, Germany saw a 30% drop in later-stage funding, with Series B rounds averaging €20-30 million, compared to $50-60 million in the US. At the heart of Schäfer's vision is HoFT’s scale-up programme, designed to tackle these very challenges and address Germany’s "scale-up gap." While Berlin is home to many finance and tech startups, few manage to grow into larger, successful companies. HoFT’s programme offers tailored support to these growth-stage companies, providing them with the regulatory guidance, access to resources, and global investor networks they need to expand. By focusing on scale-ups – which generate up to 90% of jobs in the sector – this programme is crucial to fostering sustainable growth and cementing Berlin’s role as a global finance and tech hub.
Financial literacy is another key focus area for Schäfer. With a vision to promote financial wellbeing, HoFT.Berlin is not only helping scale-ups but also educating individuals and businesses on long-term financial planning, investment strategies, and navigating economic uncertainties like inflation. By addressing these societal needs, HoFT.Berlin aims to create a more inclusive and financially resilient future for all.
Looking ahead, HoFT.Berlin has ambitious plans to evolve as the go-to hub for finance and tech innovation in Berlin and beyond. By aligning the interests of businesses, regulatory bodies, and society, Schäfer and his team are creating a platform for sustainable, long-term impact. In an atmosphere charged with Aufbruchstimmung, HoFT.Berlin is leading Berlin into its next chapter as a global leader in finance and tech.
Author: Günther Petelin, Senior Advisor BFI