Joonko was initially planned to become a comparison portal for financial products. The company launched with the explicit goal of attacking the top company Check24. Instead, on October 28th, the news came in that Joonko will cease operations twelve months after the launch. The news is the most surprising one in the fintech sector this year.
Read more about the fintech news of the year and find the most important business news in the world with the Born2Invest mobile app.
What exactly happened on October 28th
At exactly 14.19 Joonko announced that business operations will be stopped on October 30th (the Insurance Monitor/Paywall had already reported before). The 43 employees will receive job offers from other fintech companies in the Finleap Group.
What should have become of Joonko?
Joonko wanted to attack Check24 without simply copying Check24. “We will break with the ‘cheaper is better’ logic of many existing comparison portals,” Finleap manager and Joonko boss Carolin Gabor told Finanz-Szene.de in August 2019. “Our aim is not necessarily to recommend the apparently cheapest product to the customer – but the one that best suits his needs.”
What has happened since the launch twelve months ago?
At the end of October last year, Joonko (punctually to the so-called “change season”) with a motor vehicle insurance comparison went as planned live, in this summer followed a still somewhat betamäßiger rate credit comparison with straight once three offerers.
Was that not enough?
Yes and no. At first glance, Joonko seemed surprisingly invisible in the past few months when measured against its own claims – for example in terms of TV advertising or Google ads. In fact, however, the lack of presence is explained by the fact that it was still in the start-up phase. Excessive marketing would have made only limited sense given the unfinished product, and would have lacked the money for this as well; the big financing rounds were yet to come.
Why is Joonko being hired so suddenly?
The October 28th press release stated that the “Series A financing round with existing and new investors, which was initiated in spring, could not be completed because one of the lead investors withdrew at short notice. An alternative and sufficient financing is not possible in such a short period of time, so the company is now taking the step and discontinuing the business.”
In what specific way has the Corona pandemic affected Joonko?
The early launch last autumn was due to the fact that Joonko wanted to include the vehicle change season in November. In addition, the plans were to win “Traction” bit by bit this year in order to be able to make the next funding round on this basis. However, the corona crisis (and the slump in new car business triggered by the corona crisis) initially ruined that plan. “With the onset of the […] Covid 19 pandemic in the spring, there was a drastic decline in the motor vehicle insurance business. […] For a young player in the highly competitive market, customer acquisition was thus made very difficult,” the press release stated.
How exactly was the funding round that broke down supposed to look – and why exactly did it break down?
According to Gabor, it was agreed that existing and new investors would invest a total of $17.6 million (€15 million) in Joonko this autumn – after around $11.7 million (€10 million) a year ago. It is not quite clear whether the current round was supposed to be larger according to the original (i.e.: valid before Corona) plans. The only thing that is certain is that the $17.6 million (€15 million) mentioned would have been too little to really get off the ground in terms of marketing. Instead, the money would probably have been needed to expand the two existing comparisons and launch others.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in finanz-szene.de, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Digitization of financial services gives wings to fintech companies to reinvent the industry
Creators of increasingly popular solutions such as mobile applications and digital payments, the leaders of the fintech ecosystem will play...
Fellow Funders opens real estate crowdfunding division
The financial company Fellow Funders opens a new line of real estate business with the crowdfunding of $1 million (€870,000)...
Why the FAANGs have led the way upward
The NYSE FANG Index is the subject of our “Chart of the Week.” High tech rules. But will it continue?...
Gold market is holding strong
For the past eight months the bears have been unable to get the price of gold to correct by 20%....
API fintech TrueLayer cashes in on new $70m round lead by Addition
The injection of new capital will be used to accelerate the global expansion and development of premium open banking services,...
Crypto6 days ago
Ethereum is more similar to a real currency than Bitcoin, says Mark Cuban
Featured6 days ago
Why are chart trends for cocoa futures still down
Crowdfunding6 days ago
CrowdFundMe places clothing brand distribution 3A Sport’s minibond
Featured6 days ago
Wendel integrates ESG into the financial terms of its undrawn syndicated loan