Why Swedish Bank SEB Backed its First Bitcoin Startup

In a new interview, CoinDesk speaks with Sweden's SEB Group to learn more about the bank's first bitcoin investment.

AccessTimeIconAug 4, 2016 at 4:35 p.m. UTC
Updated Aug 18, 2021 at 5:06 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The investment branch of Sweden's SEB Group has been investing in what it calls "deep technology" startups for over 20 years.

Since 1995, it has been investing in a wide range of startups through SEB Venture Capital, including management app Tink and post-trade securities startup Information Mosaic. In 2010, CA Technologies purchased SEB investment Arcot for $200m, and in 2014, Cisco purchased SEB investment Tail-f for $175m.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • But when it came to backing its first bitcoin business, the team of nine investors with an allocation of about $250m (2bn SEK) from SEB Group didn’t want to rush the process.

    Head of SEB Venture Capital, David Sonnek, acknowledged the investment is "purely financial", but stressed the addition of digital currency processor Coinify to its portfolio is about more than an exit strategy.

    He told CoinDesk:

    "This kind of platform really unleashes the innovation of us all, and that may be the most important aspect."

    Growth strategy

    That said, SEB will also be taking a bigger role at the startup as part of the $4m investment, also participated in by SEED Invest Denmark

    SEB's investment manager Stefan Olofsson will serve on Coinify's board of directors, and Filip Petersson is now the startup's deputy director.

    Sonnek said his team doesn't intend to get involved with the digital currency processor's day-to-day operations, but indicated larger strategy will be discussed. For example, there are now plans to expand Coinify's business to Asia.

    But, Sonnek said he imagines the information exchange will be a two-way process.

    "We want to help grow the company," said Sonnek, "and become a more tech savvy bank."

    In this way, Sonnek said he hopes the time and money being invested in the developing startup will have ripple effects across the entire SEB Group.

    Sonnek concluded:

    "It will take time to see what they are going to inspire."

    Image of SEB facade via SEB

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about