First of its kind program will help sustain NYC’s leading role in global financial services
NEW YORK; Dec. 2, 2010 – A consortium of banks, venture investors and technology experts today launched a competitive search for the nation’s top financial technology innovators. Winning entrepreneurs will get the chance to further develop their companies through the FinTech Innovation Lab, an annual program run by the New York City Investment Fund, the economic development arm of the nonprofit Partnership for New York City, and Accenture.
The Innovation Lab is an example of how New York will maintain its status as the world financial capital, in this case by investment in the next generation of financial technology companies. Entrepreneurs who are developing commercial technology products with potential applications in financial services, particularly mobile/wireless, data management and analytics, security and social media/collaboration tools, are invited to submit proposals. The chief technology officers and senior technology executives of Bank of America, Barclays Capital, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street and UBS will determine which proposals are accepted for further development and deployment.
The banking and securities and investment sectors in North America alone will spend over $14 billion on external software in 2011, according to Celent. The U.S. financial services industry employs nearly 233,000 technology workers, including approximately 25,000 in New York City. This is an enormous market and pool of talent that can be leveraged to ensure that New York is the center of the growing high tech sector of the financial services industry.
Through a competitive process, the consortium will select up to six entrepreneurs to participate in a twelve-week lab experience, beginning in May 2011. To be accepted, applicants must have at least a working alpha version of their technology that is ready to be tested for either the institutional or retail market. For the winning companies, the lab will provide work space, partial funding for expenses, and mentorship from the participating financial firms.
In addition to the banking institutions, a group of venture funds will participate in supporting the Innovation Lab, including Contour Venture Partners, Polaris Venture Partners, Rho Ventures, RRE Ventures, Village Ventures and Warburg Pincus.
“We’re looking for entrepreneurs who have innovative technology solutions that address the needs of the financial services industry, including technologies from other sectors that can be redirected to financial services,” said Maria Gotsch, President & CEO of the New York City Investment Fund. “Our goal is to identify the best of the next generation of financial technology entrepreneurs and to give them access to and feedback from potential customers and funders.”
“New York City, which employs nearly half a million people in the financial services industry, is uniquely positioned to benefit from the growth of financial technology as an entrepreneurial sector,” said Kathryn Wylde, President & CEO of the Partnership for New York City. “All of the major international financial institutions have a presence here and each year these firms make significant investments in information technology, which represents only a fraction of the potential FinTech market.”
“For entrepreneurs targeting the financial services sector, this program is a unique opportunity to get access and feedback from potential users and funders,” commented Fred Wilson, Board Member of New York City Investment Fund and Managing General Partner of Union Square Ventures. “This type of market input is invaluable.”
“We are bringing together an unmatched group of technology leaders and entrepreneurs to address creatively the challenges facing the U.S. financial industry,” said Chris Wearing, Managing Partner in Accenture’s U.S. Capital Markets practice. “The FinTech Innovation Lab will help foster a new era of global leadership for New York City’s financial center.”
"The FinTech Innovation Lab will capitalize on two of our City’s economic strengths: our standing as a global center for financial services and our position as a place for entrepreneurship and technological innovation," said Deputy Mayor for Economic Development Robert K. Steel. "The Bloomberg Administration is committed to further cultivating New York City’s innovative environment, particularly in high-growth areas, and the unique FinTech initiative will compliment and build on our efforts to attract and support new ventures."
“Our firm is excited to participate in the FinTech Innovation Lab,” said Guy Chiarello, Chief Information Officer for JPMorgan Chase & Co. “By leveraging the city’s enormous resources in financial services, we think that the Innovation Lab will help bring growth and innovation to the financial technology sector here in the New York.”
“This program provides a unique opportunity to put innovative ideas into practice and ultimately to help ensure that the financial technology sector actively contributes to New York City’s growth,” said Anthony P. McCarthy, Global Chief Information Officer for Capital Markets at Deutsche Bank. “We are pleased to support this unique partnership between the financial and entrepreneurial sectors.”
“A prime objective of this alliance is to facilitate greater network connections between the large users of technology, the entrepreneurs who establish businesses in New York City and the venture capital investors who fund them,” commented James D. Robinson, III, Co-Founder and General Partner, RRE Ventures.
“Warburg Pincus is delighted to have the opportunity to support this unique program. Financial services companies are the largest buyers of technology-enabled solutions and the majority of them are headquartered in New York City. This program creates an opportunity for local entrepreneurs to showcase their ideas and receive the support necessary to bring them to fruition” commented Cary Davis, Managing Director of Warburg Pincus.
Proposals must be submitted by January 31, 2011. Winners selected for the FinTech Innovation Lab will be notified by mid-March 2011. The program will begin in early May and conclude with presentations to investors in late July. Finalists must reside in New York City for the duration of the program. For more information about the FinTech Innovation Lab, visit www.fintechinnovationlab.com.
About The Sponsors
The New York City Investment Fund (www.nycif.org) is the vision of Henry R. Kravis, founding partner of Kohlberg Kravis Roberts & Co., who serves as its Founding Chairman. The Investment Fund has raised over $110 million to mobilize the city’s world financial and business leaders to help build a stronger and more diversified local economy. It has built a network of top experts from the investment and corporate communities who help identify and support New York City’s most promising entrepreneurs in both the for-profit and not-for-profit sectors. The Fund is governed by a Board of Directors co-chaired by Russell L. Carson, General Partner of Welsh, Carson, Anderson & Stowe; and Richard M. Cashin, Managing Partner of One Equity Partners. The Investment Fund is an affiliate of the Partnership for New York City (www.pfnyc.org), an organization of the leaders of New York City’s top corporate, investment, and entrepreneurial firms. They work in partnership with city and state government officials, labor groups, and the nonprofit sector to promote the interest of the city and its neighborhoods. The Partnership carries out research, policy formulation, and issue advocacy at the city, state, and federal levels, leveraging the resources and expertise of its CEO and Corporate partners. Partnership companies account for nearly 7 million American jobs and contribute over $740 billion to the national GDP.
Accenture is a global management consulting, technology services and outsourcing company, with approximately 204,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com
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