Social trading is a trend and a form of investment that PostFinance does not wish to deny its customers. With social trading, as yet inexperienced investors can follow the investment strategies of experienced traders via a platform and copy these strategies for themselves. As early as 2017, PostFinance took a stake in wikifolio – a startup from Austria that has set up such a social trading platform. The participation was initiated by PostFinance’s Corporate Venture Capital team. They are responsible for scanning the startup scene at home and abroad and analysing and initiating participations in startup companies. The focus is on innovative growth companies that sprout promising business ideas in areas that are strategically relevant to PostFinance. But what do such participations actually bring to the startups and to PostFinance in concrete terms?
More than capital: startups such as wikifolio benefit from participation
PostFinance’s Corporate Venture Capital team continually reviews and initiates new participations in startups. The wikifolio example demonstrates how they can benefit from this. The innovative social trading company receives more than capital.
Strong market presence with the Investors Challenge
The wikifolio example illustrates the numerous opportunities of such a partnership. PostFinance not only supported the startup when it entered the Swiss market, but has also ensured a strong presence with the Investors Challenge: via this broad-based, headline-grabbing event, which runs until the end of February, PostFinance and wikifolio were together looking for the very best Swiss investors. With a virtual starting capital of CHF 100,000, participants can put together a sample portfolio. These ‘challenge wikifolios’ are publicly available so that others can compare and vote on investment strategies. For wikifolio, the Investors Challenge brings about two things in one fell swoop: strengthening their reputation and drawing a great deal of attention. These are two factors that are often hard for a startup to achieve on its own.
More than just an investor
As an established financial services provider, PostFinance brings added value to the startups in addition to the financial participation itself. Alongside access to the (Swiss) market, this also includes financial know-how, expertise in various other areas such as marketing and access to exciting networks.
New possibilities, fresh know-how
But PostFinance also benefits: on the one hand, the financial services provider can offer its customers who have little investment experience a fresh opportunity to make investment decisions independently. On the other hand, PostFinance receives valuable input and insights on how social trading works. In establishing itself as a provider of digital investment opportunities, the participation in wikifolio therefore represents an important step in this area.
Create win-win situations
Creating win-win situations is the stated goal of the Corporate Venture Capital team. The latter is intensely involved with the startups beforehand and examines to what extent they meet the criteria for participation, be it in respect of the business model, the market, the product appearance, the team or the technology. Only then does the Corporate Venture Capital team present the participation proposal internally to the investment committee, offer advice, and act as a liaison between PostFinance and the startup. With the participation in wikifolio, the foundation has thus been laid for a very promising partnership in this area. A partnership from which everyone benefits