Lux Future Lab – the place to start for FinTech entrepreneurs

Karin Schintgen, Head of Lux Future Lab
What is Lux Future Lab?
 
Lux Future Lab is my brainchild and it was started in 2012 when I convinced BGL BNP Paribas to develop a physical incubator office space in the heart of Luxembourg City. Since then, we have supported entrepreneurial projects in an interactive and dynamic environment. In the last years more and more fintech companies have joined the lab, ideally located in the financial district. BGL BNP Paribas, where I work as a Director of Corporate Social Responsibility, actively supports this project since its inception.
 
 
What are the conditions for being a part of the Lux Future Lab and what are the running costs for a start-up?
 
We require that the business is already legally incorporated, has a clear vision and preferably a strong team. Once admitted, the operational cost is very favourable for cash-strapped start-ups. There is a minimum of €250 per month for a working desk and the price for an office space is €28 per sq. /month. This includes: equipped offices, the use of common spaces such as conference facilities, our lounge area and a meditation room. We are not equipped to address the needs of very early stage start-ups; there are other excellent co-working spaces like “Nyuko” catering for specific needs in terms of coaching, business plan set up, etc.
 
 
How many FinTech businesses (startups) do you host?
 
Currently half of our 26 residents are fintech businesses. They are either pure-play fintech (Snapswap, Mangopay, PayCash, €mpcorp etc.) or they offer fintech support services (Assetlogic, KYC3, SESAMm, Birdee Institutional, Oxford BioChronometrics etc). The value propositions range from online payment solutions, crypto currency platforms, machine learning technologies, web based services for the fund industry, robo advisory, integrated risk management tools, up to IT security issues linked to the fintech industry.
 
 
Can you mention any success stories where a start-up was incubated at Lux Future Lab?
 
We are far from having nurtured unicorns but we are really proud because our companies generally perform really well. Just a few examples:
A big success so far is Trendiction’s Talkwalker, a social media start-up launched by Luxembourgers. They now have set up an office in New York and screen on a daily basis over 500 million publications in 187 languages for their clients worldwide.
Another success is certainly MangoPay offering on-line payment solutions on 700 platforms in 22 countries. They recently had a €50M buy-out for 86% of their capital by Crédit Mutuel Arkéa.
Asset Logic joined Mercer as an interface for its 5800 investment management firms worldwide.
JobToday entered the lab only a year ago and launched in autumn a very innovative HR Recruitment app, which managed to reach already over 1 million applications!
And there are others like Excellium Services, The Markets Trust, KYC3 etc. We hope that our latest recruits will follow a successful path in 2016.
 
 
In your opinion what are the biggest opportunities for FinTech start-ups operating out of Luxembourg?
 
A big opportunity is speed, more specifically the first mover’s advantage concept. For example, MangoPay came to Luxembourg because we were fast to transcribe into our legislation the European directive on electronic currencies. Recently again, our authorities – in this case the CSSF – issued the first bitcoin license in Europe, thus attracting to Luxembourg innovative start-ups from this area. Another opportunity when it comes to fintech, is the presence of an international financial centre and the possibility to interact with that community. Proximity in the broad sense is also a must, namely: the closeness to political & economic decision makers and the closeness to the financial operators and services (legal, corporate finance etc.). If you are a start-up, the time to market is of the essence and whatever we can do to save time for our start-ups is always a huge advantage.
 
 
How about investments? Can your start-ups attract enough seed- or venture capital?
 
At the end of 2015, we surveyed our clients’ needs for capital and presently 8 of our members will be looking for financing means in 2016. The capital needs range from a few hundred thousand to over €2M. Some of these needs are sourced through the local business angels’ community and public financing. We are pleased with the seed fund that the government has just launched, together with private investors.
 
 
What are your plans for 2016?
 
Two priorities: consolidate nationally and network internationally, building on our success being the leading fintech start-up space in Luxembourg. In Luxembourg, BNP Paribas is setting up a dedicated team for servicing innovative companies. In Paris, we will also launch a 4 month acceleration program for fintech companies. In 2016, we plan to work closely with our colleagues from Berlin, London, Paris, Brussels, Shanghai, Francisco etc. in order to set-up an adequate framework for supporting our Luxembourgish based start-ups.
 
FinTech Gazette / January 2016