Tech magnate Peter Thiel financially supports three Germans, incentivizing them to abstain from academic pursuits
The Thiel Support System - spearheaded by tech tycoon and investor Peter Thiel - has unveiled its latest crop of Thiel Fellowship recipients, with three Germans leading the charge. Since 2011, this program has been dishing out scholarships to ambitious youngsters, age 23 and under, seeking to craft fresh creations instead of acquiring classroom knowledge.
Meet the power Trio of Young German Shapers:
Ferdinand Dabitz from Berlin
Ferdinand, a brilliant innovator, heads Ivy, a startup crafting a global API for lightning-fast bank-to-bank payments. Instant banking transactions are gaining traction in over 60 countries, Pix, UPI, FedNow, and Open Banking being just a few examples. Ivy aims to harmonize regional differences within these disparate payment networks. Last year, Ivy secured a hefty $20 million in Series A funding, which included money from Thiel's investment fund, Valar Ventures. Notable investors such as VC Creandum and N26 co-founder Max Tayenthal also backed Ivy.
Fabian Gruber from Erlangen
Fabian, a key player, is a co-founder and CTO at Manex AI. Based in Munich, this upstart specializes in AI technology geared toward automating and optimizing manufacturing processes. Manex AI has successfully developed AI-powered solutions primarily for industries such as automotive, with a recent €8 million seed funding injection to boot.
Carlo Kobe from Hamburg
Carlo, a visionary leader, co-founded Fizz, a fintech startup based in NYC. Fizz delivers an app assisting American college students in building their credit scores without the need for prior credit history or a guarantor. Fizz's debit card enables students to gradually build their credit score through everyday spending. The goal of Fizz is to break the cycle where individuals without a credit score struggle to secure one, ultimately securing their financial future. The app also offers educational resources to help users master money management.
The Lowdown
The trio, along with the other 13 fellows, will receive a substantial $200,000 funding over two years as part of the fellowship program - double the previous amount. This new generation of entrepreneurs will also secure access to Tycoon Thiel's extensive network of tech pioneers, investors, scientists, and former fellows through his foundation.
With a full-time commitment to their projects, companies, or ideas, the fellowship recipients must therefore forsake any ongoing educational pursuits, if necessary. Unlike in the past, participants no longer need to boast an already successful venture to bag the fellowship.
The Backlash
While the Fellowship has been lauded for fostering emerging talent in tech and entrepreneurship, critics voice concerns that it might prompt young minds to make hasty decisions with uncertain outcomes. Thiel himself is no stranger to scrutiny, employing the fellowship to criticize universities and traditional institutions, which he likens to "decaying medieval Catholic institutions." Critics maintain that he is deliberately undermining trust in established learning institutions to promote privatized alternatives.
Thiel's contentious political views and associations with libertarian and right-wing populist movements have also been a source of public debate.
Despite the criticism, the Fellowship has produced a lineage of successful founders, including Ethereum, Figma, and Luminar co-founders. Supporters contend that the program offers a refreshing alternative to conventional education.
Ferdinand Dabitz, the founder of Ivy, a startup developing a global API for swift bank-to-bank payments, received financing from Thiel's investment fund, Valar Ventures, after securing $20 million in Series A funding last year.
Fabian Gruber, co-founder and CTO of Manex AI, a Munich-based AI technology startup that automates and optimizes manufacturing processes, secured an €8 million seed funding injection for the company's AI-powered solutions, primarily for industries like automotive.
