Building a fintech business in Europe can often take years, with founders frequently encountering delays due to complex regulations and operational obstacles. 0TO9 was specifically established to accelerate this process, providing entrepreneurs with the essential tools needed to launch and expand regulated companies effectively.
In this profile, Jessica Holzbach, a partner and CEO Germany at 0TO9, shares insights into launching the firm's DACH hub. She reflects on her extensive journey, from being a student founder to co-founding successful ventures like Penta and Pile, and explains why she believes now is an opportune moment to support a new wave of European fintech innovations.
Tell us more about your company and its purpose
0TO9, also known as Zero to Nine, operates as a pioneering fintech venture builder and investor. Our ambitious goal is to initiate and scale 1,000 profitable fintech companies by the year 2045, with the ultimate vision of positioning Europe as the global leader in fintech.
We founded 0TO9 after consistently observing a frustrating pattern: fintech founders were repeatedly bogged down by regulatory processes for months, often depleting their funding while international competitors advanced. We recognized that founders lacked the necessary time and resources to keep abreast of rapidly evolving regulations, such as new EU directives like MiCA, DORA, and AMLA, all while simultaneously striving to grow their businesses.
Crucially, we also understood that these market barriers exist for valid reasons and are unlikely to disappear. Robust regulatory frameworks are vital for safeguarding consumers and encouraging companies to develop stronger, more resilient business models.
Our team concluded that the most effective way to enhance and streamline the fintech startup journey was to equip entrepreneurs with a complete operational infrastructure. This infrastructure enables them to establish and scale licensed businesses efficiently. We offer comprehensive support, ranging from legal and compliance assistance to technical aid, capital provision, and go-to-market strategies. This integrated approach allows fintech founders to concentrate on their core strengths: developing exceptional products and expanding their businesses. With 0TO9, launching a successful fintech venture is now designed to take months, rather than years.
What are some of your recent achievements you’d like to highlight?
Most recently, I spearheaded the launch of 0TO9's hub in Germany in early September. In my role as CEO and partner in the DACH region, I was personally responsible for assembling the team dedicated to advancing our mission. This period represents an exciting time for fintech development across the continent, especially as the sector emerges from an eight-year investment downturn. Our efforts signify a commitment to reversing this trend and restoring Europe's prominent position in the global fintech landscape.
During this time, I have collaborated with outstanding entrepreneurs in Berlin, assisting them in launching six portfolio companies. Remarkably, one of these companies achieved profitability in just four months, and another within five months.
It is evident that we have moved swiftly to establish and scale these companies, a pace that is essential if we are to achieve our target of building 1,000 profitable fintechs by 2040. The inherent talent and ambition are present; our role is simply to provide founders with the optimal toolkit for success.
How did you get into the fintech industry?
My journey into fintech began at university, where I developed a profound fascination with finance. I am captivated by how financial flows serve as the vital lifeblood of innovation and industry, a perspective that has always fueled my excitement about the boundless possibilities they present.
Following university, I quickly decided that my aspiration was to build a company from the ground up.
My first entrepreneurial endeavor involved founding a company that imported acai berries. However, I soon realized that this was not my true passion. Nevertheless, I gained invaluable lessons from this initial attempt that proved instrumental in my second venture: Penta, which grew to become Germany’s largest online business bank. Within a few years, we scaled Penta to serve 70,000 SME customers, successfully raised over $80 million in venture capital, and built a team of 300 professionals. Ultimately, we achieved a successful sale of Penta to Qonto, a leading European SME business banking platform.
Subsequently, I co-founded Pile Capital, a treasury management platform designed to support high-growth startups and venture capital firms. Two years later, I successfully sold Pile to Vivid Capital.
Now, I am enthusiastically engaged in my role at 0TO9, where I have the privilege of helping other entrepreneurs launch and scale their fintech ventures. It has been incredibly gratifying to collaborate directly with talented individuals, working towards making the finance industry resilient and future-proof.
What’s the best thing about working in the fintech industry?
One of the most compelling aspects of fintech is its inherently disruptive nature. Banking, as one of the oldest industries globally, has undergone countless evolutions and iterations, from ancient barter systems to the modern use of fiat money. This long history means that outdated and inefficient business practices are still prevalent, creating ample opportunities for innovative new companies.
Above all, the human element stands out. Fintech is fundamentally about empowering individuals by improving their access to high-quality products and services, thereby enabling a higher standard of living in the contemporary economy. Discovering and implementing ways to ensure that the financial system and institutions serve everyone is, in my view, the most rewarding work imaginable.
What frustrates you most about the fintech industry?
Reflecting on 2021, during the era of zero interest rate policy which coincided with a fintech funding boom, I observed a frustrating decline in standards of excellence. Despite record levels of investment, there was a pervasive, superficial hype surrounding the industry. Many entrepreneurs launched fintech SaaS companies simply because it was perceived as fashionable. I distinctly recall how the market became saturated with companies that lacked genuine vision, making the industry feel superficially opportunistic.
However, currently, I am enjoying the industry more than ever before. We are approaching its potential with greater seriousness, focusing on the significant benefits it can bring to people's lives and how it can seamlessly integrate with other technological verticals, such as health tech and e-mobility.
Today, companies must adopt a bold and distinctive approach to fintech to ensure their survival. This explains why later-stage fintechs, having demonstrated proven success, are currently securing the majority of funding, while early-stage companies are compelled to present more compelling pitches.
In essence, this flight to quality is a welcome development. If a company can present strong metrics, it will attract the necessary capital to scale. There is a tangible opportunity now to make a profound impact, and this is what excites me most about the current landscape.
How have your previous roles influenced your career?
Every experience serves as foundational groundwork for subsequent endeavors. Had I not started an online shop for acai berries, I would never have encountered the significant challenge of opening a business bank account, a problem that directly led to the founding of Penta. Similarly, without Penta, the idea for Pile would never have materialized.
Simultaneously, I learned that the most crucial component of any successful venture is the team. The individuals you choose to surround yourself with—be they employees, co-founders, investors, or advisors—are paramount. I am immensely grateful to have learned what truly exceptional talent entails, and I apply these high standards to every new undertaking.
What I find most fulfilling is bringing together the most talented individuals in a collaborative environment, granting them the creative freedom to innovate, and then witnessing the remarkable new companies and products they develop to address real-world challenges.
What’s the best mistake you’ve ever made?
My very first angel investing ticket, while a small sum, was technically a financial mistake. It was painful to witness the company fail just two years later.
Nevertheless, that experience was instrumental in leading me to pursue investing in the first place, providing a much clearer understanding of how the ecosystem functions. I was determined to learn from that setback and identify strategies to mitigate similar risks in the future, which ultimately led me to a scouting position at EQT Ventures.
That position serendipitously brought Siduri, our CMO and partner, into my professional orbit, and she subsequently approached me to join 0TO9. Therefore, in the grand scheme of things, it proved to be the best mistake I ever made. Often, it is the low points that serve as powerful springboards for reaching new heights.
What has the future got in store for your company?
We are committed to building the first truly European bank of entrepreneurship, aiming to establish Europe as the global leader in financial services. From its inception, 0TO9 prioritizes entrepreneurs and innovation, and our organizational agility is crucial to supporting them comprehensively. We envision 0TO9 as the new and significantly improved paradigm of distributed banking.
What are the next key talking points or challenges for your industry as a whole?
The primary challenge ahead is maintaining pace with advancements in Artificial Intelligence (AI), ensuring that both our organization and the broader industry discover the most effective methods to integrate this transformative technology into our daily operations.
However, with every opportunity comes inherent risk. When managing people's money, there is no room for error. This brings us back to critical questions surrounding ethical AI and determining who or what is best suited to oversee our finances. The risk is not AI itself, but rather how we choose to utilize it. And, crucially, choosing not to utilize it is simply not a viable option in today's rapidly evolving landscape.
