some info on stockholm fintech and an overview of bitcoin, blockchains, ethereum,

1. April 2016
www.hhs.se

2. Halloween in Nashville, 1974

3. People
• “Net generation”
• 24x7 “mobile” workforce
• Knowledge via MOOCs
• Sharing not owning
• Sustainability
Technology
• Broadband access
• Mobile phones
• The cloud
• Internet of Things
• Big Data
• 3D printing
• Robotics/AI
• VR/AR
• Holography
• Blockchains
Open Source IP
• Software
• Hardware
• Physibles
Convergence of…..
Finance
• Microlending/microfinance
• Crowdfunding/equity/P2P
• Non-fiat cryptocurrencies
• Mobile money/payments
• M2M payments

4. Banking is essential,
but banks are not.
Bill Gates
The emergence of FinTech

5. Stockholm hits 100
Fintech companies in 2015
Acquired companies included in these totals

6. Strong investment in Stockholm Fintechs
* 2015 estimate based on 2014 growth rates.
m USD
658.5m USD
Invested over the past 5 years
>14bn SEK
Estimated 2015 Revenue for Stockholm Fintechs*
>5800
Estimated 2015 Employment for Stockholm Fintechs
181.6
55.4
17.6
266.2
137.7
2011 2012 2013 2014 2015
Investments in Stockholm Fintech Companies

7. Stockholm Fintechs moving in
on traditional bank territory
Inspiration from CB Insights, SEB base
webpage slightly modified to make more room

8. +

9. USD 137.7 mln in funding to
Stockholm Fintech Companies in 2015
66.6m USD
Intel, Zouk Capital,
Creandum, Dawn
Capital, Index
Ventures, MCI
Capital, Northzone
15.0m USD
Accel, Creandum, GP
Bullhound, Martin
Wattin
10.0m USD
Northzone, White
Star Capital
1.9m USD
Undisclosed
1.4m USD
Northzone,
Undisclosed Angels
0.6m USD
Peter Gyllenhammar
0.6m USD
NFT Ventures
0.5m USD
Andreas Bonnier
0.7m USD
Crowdfunding,
Techstars
Undisclosed Undisclosed
Aggregate Media
Undisclosed
NFT Ventures
Undisclosed
NFT Ventures
38.0m USD
Kinnevik, LeapFrog
0.7m USD
NFT Ventures
0.5m USD
Karl Johan Persson
1.2m USD
Staffan Persson,
Thord Wilkne
Undisclosed
NFT Ventures

10. Corporates investing in bitcoin and blockchains
https://www.cbinsights.com/blog/largest-blockchain-deals-strategic/

12. No one knows everything,
everyone knows something,
all knowledge resides in humanity.networks.
Adapted from Lévy 1997Image: Krebs

13. Bitcoin – An emergent phenomenon
• Open source project on SourceForge in Jan 2009
• Original source code by “Satoshi Nakamoto” – pseudonym?
• Developed by self-organizing, online community of
thousands of strangers across globe
• Approx USD 6.6 bln market cap and 200,000 transactions
equal to USD 150 mln in daily transaction volume
• 1 BTC = USD 425 (April 13, 2016)
Teigland, Yetis, Larsson 2013 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2263707
Within 6 years:
Challenging the
fiat money
system?

14. Institutions
Emergent Collective
vs
E.g., Central Bank
~ Long-standing financial
institutions and regulations
E.g., Bitcoin Community
~ Emergent collective of users across
globe connected through internet
Teigland, Yetis, Larsson 2013

15. Why do
banks exist?

16. How does Bitcoin work?
https://99bitcoins.com/get-your-first-bitcoin/
• Digital
• Decentralized, P2P
• No third party
• Shared public ledger
• All transactions ever
made logged
• Chronology and
integrity enforced by
cryptography

17. The blockchain underlies bitcoin transactions
Financial Times

18. Centralized vs distributed ledgers
Financial Times

19. A global network of Bitcoin nodes
https://bitnodes.21.co/

20. https://www.youtube.com/watch?v=K8kua5B5K3I

21. AltCoins and the Blockchain
http://www.longfinance.net/images/events/Blockchain_and_Insurance_Webinar_10.14v2.0.pdf

22. Where can I spend my bitcoins?
Microsoft
Dell
Wordpress
Newegg
Overstock
Giftcards

23. Bitcoin – one of 100s of AltCoins
http://coinmarketcap.com/

24. Sluggish growth in bitcoin usage?
 Users satisfied with current payment systems that
continuously improving
 Practical difficulty of purchasing bitcoins
 Volatility of bitcoin’s value relative to government-
issued currencies
 Perception that bitcoin is insecure
 Questions over bitcoin’s legal status
 Irreversible and unforgiving nature of bitcoin
transactions
 Lack of support for bitcoin in mainstream financial
sector
http://www.multichain.com/download/MultiChain-White-Paper.pdf

25. The blockchain: bitcoin only one application
 Decentralized - robust, no central control or
authority required to coordinate behavior or
interaction
 Shared public history of all transactions
 Displaces roles of trusted third parties
• Can’t do same transaction twice
• No double spending
• No transaction repudiation
 ‘Trustful – initial entry requires high degrees
of trust but then system operates on trustless
basis
http://www.longfinance.net/images/events/Blockchain_and_Insurance_Webinar_10.14v2.0.pdf

26. The (Ethereum) blockchain

28. Betting on the blockchain - together
>40 banks and counting…
Goldman Sachs, JPMorgan,
Credit Suisse, Barclays,
Commonwealth Bank of
Australia,
State Street, RBS, BBVA, UBS,
Nordea, SEB, + ……
+ +

29. Benefits of blockchain for financial services
 Lower costs through shared infrastructure
 Faster settlement that leads to lower capital
and liquidity needs
 Increased transparency, especially with cross
border payments
 Greater security through cryptography,
transparency
Citi Research, Jan 2016

30. Blockchain insurance applications

31. Enabling smart contracts
Weather data
algorithm
Insurance
claim payout

32. From “trusted”, centralized human authorities
to trustless, decentralized networks
IBM Institute for Business Value (PDF)

34. • World’s first decentralized computer
• Commoditizes trust
https://www.youtube.com/watch?v=U_LK0t_qaPo

35. robots

36. Enablers of a “true” Collaborative Economy?
Blockchains
Sharing/
Collaborative
Economy
IoT/sensors
P2P/M2M
micropayments
Big data

37. Time will tell…..
The Blockchain is the glue that is going to
drive a productivity revolution across the
globe on par with what Henry Ford did
with the automobile.
— Paul Brody, Americas Strategy Leader,
Technology Sector, Ernst & Young

38. 1950s vision of
home PC in 2004

39. If the rate of change on the
outside (of an organization)
exceeds the rate of change on
the inside, the end is near....
-Jack Welch

40. Robin Teigland
robin.teigland@hhs.se
www.slideshare.net/eteigland
www.funnovation.se
@robin.teigland
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