A global investor acknowledges fintech as a driving force in the worldwide financial sector. It is revolutionizing various industries, including banking and insurance, through digital advancements. The investor also highlights the significance of regulatory compliance in fintech, citing challenges arising from varying financial regulations across countries. In an interview with Fintech Review, Donatella Callegaris from Flashpoint shares her perspectives on the state of fintech.
Tell us more about Flashpoint. What’s your elevator pitch?
Flashpoint is an international technology investment manager with over $400 million in assets under management (AUM), focusing on tech companies in Europe and Israel. The firm operates five venture funds, including three VC funds, a Venture Debt Fund, and a Secondary Fund. Headquartered in London, Flashpoint has offices in New York, Tel-Aviv, Budapest, Warsaw, Riga, and Nicosia.
Flashpoint’s investors include Széchenyi Funds, a Hungarian fund manager, and over 130 major family offices and high-net-worth individuals. The funds have made investments in 64 companies, including well-known names such as Guesty, Chili Piper, and Office RnD. Notably, Flashpoint allocates a third of its capital to investments in areas such as e-learning, telemedicine, and online job platforms, aiming to drive socially responsible development alongside monetary returns.
What is your background, and your journey with Flashpoint?
Having engaged with numerous innovative businesses throughout my career, I now focus on supporting founders from the CEE, Baltic regions, Finland, and Israel in building successful companies across Europe. Prior to joining Flashpoint in 2019 as a Venture Debt Managing Partner, my experience revolved around venture debt for nearly 15 years, culminating in running a venture debt fund.
Prior to Flashpoint, I played a key role as a founding member of a UK-based venture debt fund, Columbia Lake Partners (CLP), and gained extensive experience with Kreos Capital, managing investments and overseeing portfolios for technology and life science companies in the UK, continental Europe, and Israel.
Before Flashpoint…
Before my tenure at Flashpoint, I was involved in setting up CLP with Bessemer Venture Partners, and earlier had a significant role at Kreos Capital, which was subsequently acquired by BlackRock. These experiences have shaped my journey and laid the groundwork for my current role at Flashpoint.
You recently exited from Clausematch following its acquisition by Corlytics. Can you share more about it?
My involvement with Clausematch dates back to my time at CLP, and our investment in the company’s 2022 USD 10.8 million funding round marked a significant milestone. Observing the company’s impressive growth and the strategic synergies between Clausematch and Corlytics, I am confident about the combined business’s prospects. This exit represents FlashpointGroup’s 15th exit and serves as a testament to the Venture Debt team’s success since the fund’s launch in early 2020.
This is your 15th exit. Are you following a specific strategy or has it been organic?
At Flashpoint, the majority of our exits have been “organic,” reflecting the strong quality of our portfolio and attracting healthy interest from strategic investors. While the exit path for venture debt differs from traditional VC funds, our focus remains on achieving returns through IPOs or trade sales/M&As. This strategic approach has been instrumental in our successful exits.
What do you see as the major trends in fintech from an investor perspective?
The COVID-19 pandemic accelerated the adoption of digital financial services, propelling segments like payments and neobanking into the spotlight. Despite a recent drop in fintech valuations and new funding, the industry’s emphasis is shifting towards sustainable development and profitability. Key trends include the surge in digital transactions, the rise of neobanks, AI-driven analytics, and the growing intersection of fintech with regulatory technology (regtech).
Furthermore, cross-border payments and remittances are witnessing innovation through blockchain and fintech collaborations, while cybersecurity and data privacy remain crucial areas for investment. Staying informed about these trends is essential for investors navigating the dynamic fintech investment landscape.
Other innovations in fintech or elsewhere that you find particularly interesting?
Over the past two years, the travel industry has experienced substantial growth, driven by factors such as the transformation in work dynamics, the rise of “digital nomads,” and the evolving travel preferences of younger generations. This sustained growth presents significant potential for the sector, aligning with our investments in companies such as Guesty, BobW, and Welcome Pickups. As such, we remain optimistic about the prospects of TravelTech.
