Hamburg / Berlin, November 18, 2021 - Hamburg-based fintech Pockid today announces its €4 million seed funding round. The round is led by Berlin-based early-stage investor Cavalry Ventures. In addition, Vorwerk Ventures is participating in the round. The fresh capital will be used to further develop the product and to continue building up the community.
"Gen Zs are socialised with in-game purchases, subscription services and e-commerce transactions. However, they have little opportunity to meet their own digital needs with existing solutions, such as the Girocard. In a survey we conducted, we found out that more than one in three German teenagers has already forged an online payment service. At the same time, German young people have some of the highest disposable incomes in the world. We want to take advantage of this opportunity and offer added value. We are very happy to have Cavalry Ventures and Vorwerk Ventures on board, two strong VCs that support us in getting closer to our vision ‘Empower Europe's young generation to become financially independent’", says co-founder & CEO Jes Hennig.
Tailor-made offer for the demands of young users
As the first dedicated banking app for young people, Pockid offers a bank account with virtual and physical debit Mastercard. The iOS and Android app enable age-appropriate banking in a secure environment, making it the first "Gen Z Neobank" that allows young people to independently pursue their hobbies and meet their needs.
In addition, Pockid offers categorisation of transactions in the app, which, along with other educational elements, helps young people get to grips with their own finances. High security standards are also enabled via real-time card control. Here, both the virtual and the physical Mastercard can be controlled with just a few clicks, for example, to switch contactless payment on or off or to block the Mastercard in an emergency.
Simplified processes and parental overview for more security
Pockid has replaced complex account opening processes for under-18s with a completely digital onboarding process. The account can be opened in just a few minutes and provides direct access to the virtual Mastercard.
The Pockid account works on a prepaid basis, so it cannot be overdrawn. For young people under 18, parents also receive a separate overview of the account. This gives them the necessary security without being able to see every detail of their children's transactions. This builds a trusting bridge between parents and young people, integrating the important topic of finances into everyday family life.
Rapid growth in new channels
Since its launch in June 2021, Pockid has relied on authentic communication channels that are close to the target group and, compared to other European neo banks, has been able to build the largest fan base on TikTok, with over 50 thousand followers and millions of views, in a short time.
The short videos, which are mainly produced in-house, attract a lot of attention among the target group and create a high level of identification with the brand, resulting in several thousand account openings in just a few weeks.
"Gen Z has a keen sense of how authentic brands communicate and act. We take this honest and direct feedback very seriously and attach great importance to close and constant exchange. This is how we were able to build up an active community in just a few months. Our users use account & Mastercard frequently and are also very happy to recommend it to others, without us currently incentivizing this. In order to continue to be as authentic as possible, we rely on a young, diverse team and a close exchange with the target group," explains co-founder & CMO Max Schwarz.
Pockid's success to date and promising prospects are also generating a lot of interest among venture capital investors. "The Pockid team understands and speaks the language of Gen Z like no other provider on the market. Pockid has a clear vision to deliver real value to its users that goes far beyond the typical bank account. At Cavalry, we are excited to partner with Pockid and look forward to supporting the team as they become the European champion for Gen Z banking," comments Martin Janicki, Principal at Cavalry Ventures.
Fresh capital for new features & campaigns
The fresh capital will be used to implement new features relevant to target groups. The goal is to develop the bank account with Mastercard into an everyday "digital enabler" and to create added value especially in the area of social commerce & gaming. Further investments are also being made in building up the community in order to grow closely with the target group.
The current 11-member Pockid team is to be expanded to include additional key positions with international experience in order to take the first steps outside Germany.
“Pockid´s focused approach towards an in terms of banking and online payment solutions desperately underserved target group, which is natively socialized online and showing similar behaviour across borders, in addition to an outstanding product and founding team with relevant industry backgrounds ultimately convinced us to invest. We at Vorwerk Ventures are excited to team up with Pockid and support them towards becoming the leading banking and payment solution for the Gen Z,” adds Peter Schmetz, Investment Manager at Vorwerk Ventures.
Pockid GmbH (pockid) is a fintech company based in Hamburg and was founded in 2020 by Jes Hennig, Max Schwarz, Timo Steffens and Deepankar Jha. Based on the vision "Empower Europe's young generation to become financially independent", Pockid offers young people a secure bank account with a debit mastercard. More information: https://www.pockid.money
About Cavalry Ventures
Cavalry Ventures is a European early-stage venture capital fund focusing on pre-seed and seed stages. With the launch of the second fund generation in 2019, Cavalry Ventures manages a total volume of 120+ million euros.
Cavalry Ventures was founded in 2016 by Rouven Dresselhaus, Claude Ritter, Stefan Walter, Markus Fuhrmann, Marcel Hollerbach, and Dominik Matyka. In addition to the expertise of the partners, the portfolio companies gain access to a cross-sector, global and exclusive network of more than 180 angel investors, entrepreneurs, scientists, business experts, and many more, who provide advisory and operational support in areas such as strategy, organisational development, product development, sales, international expansion, recruiting and marketing.
Cavalry has backed more than 40 companies such as Forto, McMakler, REKKI, BRYTER, and PlanRadar. Cavalry Ventures is headquartered in Berlin and invests across Europe.
In 2021, Cavalry was awarded the "Hottest Seed Fund" award at The Europas Tech Startup Awards. For more information: www.cavalry.vc.
About Vorwerk Ventures
Vorwerk Ventures is an independent venture capital fund based in Berlin. The company invests in founding teams with disruptive product and service ideas that improve the everyday lives of as many people as possible. Vorwerk Ventures has specialized in digital business models, in particular in the B2C sector. Vorwerk Ventures has accompanied two German unicorns, HelloFresh and Flaschenpost, from the start-up phase to successful exit (IPO / company sale) within a very short time. In early phases (seed or Series A rounds), Vorwerk Ventures usually invests between one and ten million euros; in further financing rounds, investments can be up to 15 million euros. Vorwerk Ventures' portfolio includes numerous prominent start-ups and grown-ups such as Thermondo, HelloFreshGo, Lillydoo, Juniqe, Ottonova, Planted, Zapp, Rebike and Everdrop. In addition to Flaschenpost and HelloFresh, the exit list also includes MeinAuto and Tennispoint, among others. Vorwerk Ventures was founded in 2007 as a corporate VC. The venture capital fund is managed by Norbert Muschong, Dirk Meurer and Holger Witte. Vorwerk Ventures employs a total of eight people at its headquarters in Berlin. Further information can be found on their website: https://vorwerkventures.com