Magnusson Denmark supports Pan-European VC fund to invest in Copenhagen FinTech startup

Magnusson Denmark Managing Partner and Head of Corporate M&A Sam Jalaei assisted pan-European venture capital fund BlackWood Ventures to execute its first investment in a Danish company. BlackWood participated in the EUR 2.4 million Pre-Seed funding for ZTLment, a Copenhagen-based FinTech startup that provides peer-to-peer transactions in compliance with Europe’s open banking law.

In 2022, the Copenhagen-based startup was granted a European payment institution licence by the Danish Financial Supervisory Authority. As such, it became the first company in Europe to receive registration as a provider of compliant wallet infrastructure on decentralised blockchain rails.

ZTLment has developed smart contract software which enables currency to be transferred P2P on blockchain, in full compliance with the revised Payment Services Directive (EU 2015/2366 PSD2). The solution allows digital marketplaces and cloud-based B2B platforms to instantly and automatically move money and value between buyers, sellers and financiers.

Magnusson Denmark’s Managing Partner, Sam Jalaei, commented on the deal,

“We were proud to support BlackWood in its first local investment. This deal shows that cross-border expansion is readily accessible for Danish companies, and serves as a testimony to Magnusson Denmark’s ability to assist a rising star VC fund in yet another FinTech investment.”

ZTLment’s services cover more than 13 countries. The startup is unique because instead of facilitating cryptocurrency transactions or servicing unregulated stablecoins, its services are to facilitate movement of fiat currency on the blockchain. By becoming the first company in Europe licensed to operate fully regulated payments on top of blockchain, it shows EU supervisory authorities’ willingness to accept this technology. BlackWood’s investment will contribute to the startup realising its vision to make cross-border trade frictionless, such that all companies can access first-rate finance tools and resources regardless of size.

The Magnusson Denmark team proudly assisted BlackWood’s venture fund team throughout all customary elements of a local startup investment.