Deep dive: That’s why DB1 Ventures Invested in Primary Portal

However, one trend is undeniable: the increasing importance of digital connectivity and automated workflows. These elements are becoming crucial for every ECM desk and all market participants. Recognizing this shift, Deutsche Börse Group is enhancing its digital offerings for bulge bracket banks, buy-side ECM desks, and equity issuers.

As a result of this market analysis, DB1 Ventures, the corporate venture capital arm of Deutsche Börse Group has invested €5m in the Series A financing round of Primary Portal Solution Limited in July 2024. “This investment underscores the commitment to fostering innovation and improving market infrastructure of the European capital market ecosystem. We are very excited and impressed with the capabilities of the management,” said Christoph Osburg, Investment Principal at DB1 Ventures. With John Bentinck (former Head of ECM Desk at Goldman Sachs) and Ilan Leshem (former IT roles at S&P/Ipreo & Dealogic) as founders, Primary Portal has highly experienced and well-connected ECM industry veterans with deep business and technical expertise combined with the right entrepreneurial mindset.

Digitising equity capital markets

Both founded Primary Portal in 2020, and now the fintech is at the forefront of digitising the equity capital markets, a space traditionally characterised by analogue manual and labour-intensive processes. By creating a digital platform that aggregates and streamlines these processes, Primary Portal is making capital market systems interoperable on a global scale. With over 90 banks and 400 institutional investors already using the platform, the company is driving the transformation of how banks and equity investors interact on issuances.

Enhancing connectivity and efficiency

One of the key benefits of the Group’s investment in Primary Portal is the platform’s ability to enhance connectivity between asset managers and banks. This fits very well into the Deutsche Börse Group strategy to cover the entire value chain as a capital markets infrastructure provider. By digitising communication and workflows, Primary Portal facilitates more efficient and seamless equity issuances. This not only improves the process for companies looking to raise capital, but also strengthens the overall market ecosystem. Primary Portal allows issuers to access global investors, strengthening Europe and Germany as an IPO listing venue of choice.

Leveraging advanced analytics

Primary Portal is also advancing its analytical data solutions, providing powerful tools to banks and asset managers. The demand for AI-driven analytics products is immense, and Primary Portal is well-positioned to meet this demand by offering next-generation analytics based on real-time, golden-source data. This capability is expected to significantly improve decision-making processes for market participants.

Choosing the perfect strategic partner and investor

After spending over a year with the DB1 Ventures team prior to the investment, the management of Primary Portal saw that both parties shared the same philosophy of connecting market participants, while making use of proprietary data and using technology to drive efficiencies. The team was very thorough, detail-oriented, and asked all the right questions. Their strong commitment to bringing innovation to capital markets was apparent and their experience in financial markets and broad network of market participants extensive. This presented an opportunity for Primary Portal to accelerate adoption and product expansion.

Strategic alignment with Deutsche Börse Group’s Vision

Deutsche Börse’s investment in Primary Portal aligns with its broader vision of shaping the future of capital markets through innovative solutions. By supporting Primary Portal, Deutsche Börse Group is not only investing in a promising fintech company but also contributing to the digitisation and modernisation of global capital markets. This partnership is a testament to the Group’s commitment to driving efficiency, transparency, and connectivity in the financial markets. Deutsche Börse Group is poised to play a pivotal role in the ongoing transformation of the global financial and capital markets.