Building a fintech business in Europe can take years, with founders often slowed down by regulation and operational hurdles. 0TO9 was created to make that process faster, giving entrepreneurs the tools they need to launch and grow regulated companies.
In this week’s In Profile, Jessica Holzbach, partner and CEO Germany at 0TO9 reflects on launching the firm’s DACH hub, her journey from student founder to co-founder of Penta and Pile, and why she sees now as the right moment to back a new wave of European fintechs.
Tell us more about your company and its purpose
0TO9, or Zero to Nine, is a new fintech venture builder and investor. Our goal is to start and scale 1,000 profitable fintech companies by 2045, making Europe the fintech capital of the world.
We built 0TO9 because we kept seeing the same frustrating pattern: fintech founders getting bogged down by regulation for months while their funding was running out, and their competitors abroad were moving ahead. We recognised that founders didn’t have the time or resources to stay on top of ever-changing regulations, such as new EU rules like MiCA, DORA, and AMLA, while simultaneously focusing on growing their business.
At the same time, we acknowledged that these market barriers exist for good reason and weren’t going to go away. Ultimately, we rely on robust regulatory frameworks to safeguard consumers and encourage companies to develop stronger, more resilient business models.
Our team concluded that the best way to improve and streamline the fintech startup process was to equip entrepreneurs with the complete operational infrastructure needed to establish and grow licensed businesses. We provide everything from legal and compliance support to technical assistance and capital and go-to-market strategies, enabling fintech founders to focus on what they do best: building great products and growing their businesses. With 0TO9, building a successful fintech should now take founders months, rather than years.
What are some of your recent achievements you’d like to highlight?
Most recently, I launched 0TO9’s hub in Germany in early September, where I was personally responsible for creating the team to drive forward our mission as CEO and partner in the DACH region. This is an exciting time for building fintechs on the continent, as the sector recovers from an eight-year investment drought, demonstrating that we’re going above and beyond to reverse this trend and put Europe back on track.
In that time, I’ve worked with exceptional entrepreneurs in Berlin to help launch six portfolio companies, one of which generated a profit after just four months, and another after only five.
It’s safe to say we’ve moved quickly to start and scale companies, and we need to, if we’re to meet our target of building 1,000 profitable fintechs by 2040. The talent and ambition are there; it’s just about giving founders the right toolkit for success.
How did you get into the fintech industry?
It all began at university, where I became fascinated by finance. I love how financial flows serve as the lifeblood of innovation and industry, which has always made me excited about the endless possibilities they offer.
After university, I soon decided I wanted to build a company from the ground up.
I first founded a company that imported acai berries, only to quickly realise that this was not my passion. However, I learned valuable lessons from this first attempt that helped me with my second venture: Penta, Germany’s biggest online business bank. We scaled it within a few years to serve 70,000 SME customers, raised over $80million venture capital, and built a 300-person team. We ultimately managed to successfully sell it to Qonto, the European SME business banking platform champion.
After that, I co-founded Pile Capital, a treasury management platform designed to support high-growth startups and venture capital firms. Two years later, I sold Pile to Vivid Capital.
Now I’m excited about my role with 0TO9, where I get to help others start and scale their fintechs. It’s been gratifying so far to work with talented people firsthand on ways to help make the finance industry future-proof.
What’s the best thing about working in the fintech industry?
One of the most exciting aspects of fintech is its disruptiveness. Banking is one of the oldest industries in the world, having evolved and undergone numerous iterations, from barter to the use of fiat money. You can find outdated and inefficient ways of doing business everywhere, which leaves a lot of room for new companies.
Above all, it’s the human factor. Fintech is about helping people gain better access to high-quality products and services, enabling them to afford a higher standard of living in the modern economy. Finding ways to ensure the system and financial institutions work for everyone is the most rewarding work I can think of.
What frustrates you most about the fintech industry?
Looking back to 2021, during the zero interest rate policy era that coincided with a fintech funding boom, I was frustrated by the low standards of excellence. Although we saw record levels of investment, there was a superficial hype around the industry, where entrepreneurs launched fintech SaaS companies simply because it was fashionable. I still remember how the market was flooded with companies lacking real vision, making the industry feel superficially opportunistic.
But right now, I’m enjoying the industry more than ever. We’re taking ourselves more seriously about the potential benefits it can bring to people’s lives and how it can integrate with other technology verticals, such as health tech and e-mobility.
Companies must now adopt a bold and distinctive approach to fintech, or they won’t survive. It helps explain why later-stage fintechs are currently receiving the lion’s share of funding, having proven success, while early-stage companies are pushed to pitch more convincingly.
In other words, the flight to quality is a welcome one. If you can demonstrate strong metrics, you’ll get the capital you need to scale. There’s a real opportunity now to make a meaningful impact, which is what excites me most about this moment.
How have your previous roles influenced your career
All experiences are the groundwork for the next ones. Without having started an acai online shop, I would have never encountered the problem of how difficult it was to open a business bank account, which directly led to the founding of Penta. Without Penta, I would never have had the idea for Pile.
At the same time, I learned that the most essential piece of the puzzle is the team. The people you surround yourself with, whether they are employees, co-founders, investors, or advisors. I am grateful to have learned what truly exceptional talent means and will take these standards into every new endeavour.
What I love most is bringing together the most talented people in one room, giving them free rein to be creative, and seeing what great new companies and products they develop to solve real-world problems.
What’s the best mistake you’ve ever made?
My very first angel investing ticket was technically a financial mistake. Although it was a small sum, it was painful to see the company fail just two years later.
However, that experience led me to invest in the first place and provided a clearer picture of how the ecosystem works. I was determined to learn from that experience and identify ways to mitigate it in the future, which led me to a scouting position at EQT Ventures.
That position ultimately brought Siduri, our CMO and partner, into my path, and she approached me to join 0TO9. So, in the grand scheme of things, it was the best mistake I ever made. It’s often the lows that serve as a springboard to reaching the highs.
What has the future got in store for your company?
We’re going to build the first truly European bank of entrepreneurship and make Europe the global leader in financial services. From day one, we’re putting entrepreneurs and innovation first, and it’s our job to remain agile as an organisation to support them in every way possible. 0TO9 is the new and improved version of distributed banking.
What are the next key talking points or challenges for your industry as a whole?
The main challenge is keeping pace with AI, ensuring that we as an organisation and an industry find the best ways to integrate this technology into our daily operations.
Though with every opportunity comes a risk. You can’t afford to make mistakes when handling people’s money. This brings us back to the question of ethical AI and who should be in charge of our finances, and who may be better suited for the task.
The risk is not AI itself, but how we use it. And not using it is not a viable option.
