Information on the Target

Ginkgo is a pioneering fintech startup focused on modernizing occupational pensions for small and medium-sized businesses (SMBs) in Germany. Founded by Carl Meran and Dr. Philip Liebenow, Ginkgo leverages technology to create a commission-free ETF-based pension product designed to increase the financial security of SMB employees and ultimately reshape the pension landscape.

By addressing the complexities and high costs associated with traditional pension solutions, Ginkgo offers a unique vesting mechanism that incentivizes long-term employment while providing a transparent and easily manageable pension system for employers.

Industry Overview in Germany

In Germany, the occupational pension market, known as betrieblichen Altersvorsorge (bAV), has long been cited as a sector in need of reform. Traditionally, bAV products have been characterized by high costs and administrative complexity, leaving many SMBs unable to provide effective pension solutions. This situation has hindered employee retention and overall financial security for the workforce.

The current German pension system presents a significant gap, with individuals facing financial challenges in retirement due to inadequate savings provisions. As SMBs comprise a large segment of the economy, the failures of the existing pension framework disproportionately affect them, leading many to seek innovative and sustainable solutions.

Interestingly, the pension market in Germany represents an estimated €1 billion opportunity, particularly among SMBs, which have been historically underserved. The growing need for more effective employee benefits presents a ripe opportunity for companies like Ginkgo to enter the market with solutions tailored specifically for these businesses.

As businesses increasingly recognize the importance of employee benefits in retaining talent, solutions that provide transparency and ease of management, such as Ginkgo's offerings, are quickly gaining traction. The digital-first nature of Ginkgo’s platform aligns with the broader trend toward automation and efficiency in HR practices.

The Rationale Behind the Deal

The investment in Ginkgo stems from a shared vision to modernize essential components of employee benefits, particularly for the SMB segment in Germany. By targeting the occupational pension market, Ginkgo is poised to tackle critical issues affecting both employers and employees.

Calm/Storm's commitment to supporting innovative solutions that address significant societal challenges aligns with Ginkgo’s mission. By investing in Ginkgo, Calm/Storm seeks to empower a startup that not only enhances financial stability for employees but also aids businesses in retaining talent.

Information About the Investor

Calm/Storm is recognized for its focus on Healthtech investments; however, it also dedicates resources to supporting exceptional founders in various sectors, including fintech. The firm aims to champion Austrian entrepreneurs and their innovative ideas on a global stage.

Calm/Storm seeks to back startups that challenge conventional practices and deliver scalable, impactful solutions. This investment in Ginkgo reflects the firm's commitment to fostering ventures that provide meaningful contributions to pressing economic issues.

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The investment in Ginkgo appears to be a strategically sound decision, aligning with the growing demand for innovative pension solutions among SMBs in Germany. Given the sizeable market opportunity and the increasing recognition of the importance of employee benefits, Ginkgo is well-positioned for growth.

Furthermore, Ginkgo's technology-driven approach, particularly their commission-free, ETF-based pension product, distinguishes them from traditional offerings, likely positioning them favorably within the market. The unique vesting mechanism adds an additional layer of appeal, reinforcing employee retention while alleviating administrative burdens for employers.

As Ginkgo navigates its early-stage growth, the leadership team's extensive fintech experience and their focus on addressing customer pain points provide a competitive advantage. This makes the investment an attractive opportunity for Calm/Storm, reflecting a calculated move toward a promising and impactful venture.

Overall, Ginkgo’s innovative strategy and alignment with market needs suggest it could play a crucial role in reshaping employee benefits in Germany, making the investment a potentially high-value proposition for both Calm/Storm and the SMB sector.

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