Errol Damelin
Errol Damelin | |
---|---|
Born |
South Africa | 23 August 1969
Alma mater |
University of Cape Town Boston University |
Occupation | Entrepreneur and early-stage technology investor |
Organization | Wonga.com |
Known for | Founding Wonga.com and being an early backer of PurpleBricks, TransferWise, Skurt, VivaReal, Thread and CityMapper. |
Home town | London |
Children | 3 |
Errol Damelin (born 23 August 1969) is a South African-born, Israeli/British entrepreneur and early-stage technology investor. He was the founder and CEO and later Chairman of Wonga, a British financial technology company that processed the worlds first straight through and fully automated consumer loans.
Early life
Errol Damelin grew up in a Jewish family in Klerksdorp, a small town in rural South Africa, where his father was a country doctor who later specialised as an anaesthesiologist. He went on to attend the University of Cape Town where he studied Business Science and Law and took up numerous leadership positions, including winning election to the UCT Students Representative Council in 1991. He was politically active and associated with the left leaning non-racial and anti-apartheid NUSAS students grouping during the years immediately preceding the end of apartheid in South Africa and was detained at least once while a student for protesting against the apartheid government policy of detention without trial.
Following his graduation in 1992 he emigrated to Israel and then completed a Masters of Science in Management from Boston University.
Personal life
Damelin lives in London and has three children.
Entrepreneurship
Damelin began his career working as a corporate finance banker at an Israeli investment bank that later merged into Israel Discount Bank.[1] where he focussed on the financing of technology start-ups.
In 1997 Damelin left banking in search of making an impact as an entrepreneur and become part of the founding team at Barzelan, at the time, a high tech producer of speciality steel wire based in Beit Shemesh, Israel.,[2] which grew to export to over a dozen countries .
In 2000, Damelin founded Supply Chain Connect, an award winning cloud based supply chain software company in London, United Kingdom. The company pioneered what's become the ubiquitous sharing of supply chain collaboration data via the Internet. Supply Chain Connect listed customers such as Dow Chemicals, DuPont, Phelps Dodge, General Cable, Mondi Packaging and Corning. He sold the business in 2005 to ChemConnect for an undisclosed amount
In 2007, Damelin founded Wonga.com, a financial technology business that provided web- and mobile-based short term loans in the UK and later in over a dozen countries. Wonga is regarded as the earliest of fintech companies. Damelin and his co-founder Jonty Hurwitz, conceived of and deployed the world's first fully automated, real-time risk decisioning system together with a breakthrough 'slider' user interface. Under their stewardship, and together with early investor, Chairman and close mentor Robin Klein, Wonga grew to one of the UK's most well-recognised brands [reference] and successful companies. It sponsored premier league football teams Blackpool F.C. and Newcastle United F.C., where is purchased the naming rights to the historical home ground and promptly handed the naming back to the fans, renaming it St James' Park. The company had grown from a standing start to revenues of [£300 million] and over 500 staff in 2013, his last year as Wonga CEO. The company had. launched a number of new products and services including Everline (formerly Wonga for Business), which was designed to provide short-term cash flow solutions for small- and medium-sized businesses [3][4] and Damelin lead the acquisition of Germany-based BilPay as part of its international expansion. Wonga came under pressure from the media amidst allegations of exploitation of the most vulnerable in society.[5] A few weeks after he stepped down, Wonga was required by the Financial Conduct Authority to offer about £2.6 million in compensation to customers for poor historic debt collection practices, including sending fake solicitor letters to customers. It later surfaced that their practices were industry standard and that most UK utilities and banks had long been using similar approaches to collection. Damelin always called for better regulation of the consumer lending sector and more transparency in the wider financial services industry within the United Kingdom.[6] The Office of Fair Trading (OFT) was responsible for regulating the industry during Damelin's tenure building the business. From April 2014, responsibility for consumer lending companies moved to the Financial Conduct Authority (FCA), a change Damelin welcomed. In a statement published in The Guardian newspaper, he disclosed that he felt no moral personal issues relating to Wonga's criticised trading ethics because credit can be an important force for good when transparent and fair and Wonga's customers were overwhelmingly happy with and supportive of the company.
Financial interests
Damelin is a major shareholder in Wonga.com, owning 16.8m shares through Castle Bridge Ventures, an offshore company based in the British Virgin Islands.[7]
In 2014 the Daily Mail estimated Damelin's personal wealth as more than £34 million.[8]
In June 2014, after 8 years as CEO, and having grown it from nothing to over £300m in annual revenue, he stepped down from the management of Wonga. Wonga stated that Damelin wanted to "begin an orderly exit from the company" and to focus on "new business ventures".
Angel investing and mentoring
After stepping away from executive involvement at Wonga.com, Damelin seems to have focussed on investing in and mentoring the next generation of early-stage technology entrepreneurs. He has been an early-stage backer of successful young technology companies including Ravelin, TransferWise, CityMapper, Thread, Skurt, Farmdrop, VivaReal, BitPay, Songkick and PurpleBricks.
Awards
Damelin received a number of entrepreneurial awards.
- Ernst & Young Entrepreneur of the Year, 2011[9]
- The Guardian’s Digital Entrepreneur of the Year, 2011[10][11]
- Ruban d’Honneur in the RSM International Entrepreneur of the Year category of the European Business Awards, 2009
- Founder of the Year, Founders Forum 2012[12]
- Credit Suisse Entrepreneur of the year at the National Business Awards, South East, 2008
- Digital Entrepreneur of the Year (Digital Entrepreneur Awards), 2010[13]
- Entrepreneur of the Year (Growing Business Awards), 2010[14]
- Founder of the Year (Tech Crunch – The Europa's), 2010[15]
Wonga is also ranked in the Sunday Times Tech Track Top Three, with 2012 seeing the organisation being awarded "fastest growing company" at the Media Momentum awards in Berlin.
Philanthropy
Damelin is active in Jewish charities, and has appeared on panels and discussions for World Jewish Relief and Jewish Care.[16][17]
Damelin has also been an ambassador for Charity: Water, the New York-based charity that builds wells to provide sustainable, clean water in Africa and Asia. He ran the Antarctic Ice marathon in 2012 where he raised substantial funds for the charity.
Founders Pledge: In 2015, Damelin was listed as a founding member of the group of technology entrepreneurs who pledged 2% of the equity in their companies to philanthropic causes.
References
- ↑ Wonga chief speaks to the JC
- ↑ FT profile of Errol Damelin
- ↑ London Leweb – Errol Damelin
- ↑ Andrew Cave (13 May 2012). "Wonga's Ice-cool chief Errol Damelin can take the heat". Daily Telegraph. Retrieved 26 June 2014.
- ↑ "Wonga.Com Account fraud?". Watchdog. BBC. 12 September 2012. Retrieved 26 June 2014.
- ↑ James Quinn (30 June 2013). "Wonga boss Errol Damelin: it's time to push the bad guys out of payday loans". Daily Telegraph. Retrieved 26 June 2014.
- ↑ "Wonga sets £1.2bn target" by Simon Duke in The Sunday Times, Business section, 10 November 2013, p. 2.
- ↑ Sean Poulter (25 June 2014). "Why isn't Wonga in the dock? Fury at payday lender over bogus legal letters used to bully debtors". Daily Mail. Retrieved 26 June 2014.
- ↑ http://www.ey.com/UK/en/Newsroom/News-releases/EOY---4-October-2011---Entrepreneur-Of-The-Year-2011-Winners-Announced
- ↑ http://www.theguardian.com/megas/winners-2011
- ↑ http://www.theguardian.com/megas/errol-damelin
- ↑ http://www.wired.co.uk/news/archive/2012-06/25/david-rowan-founders-forum
- ↑ http://www.digital-entrepreneur.co.uk/winners.html
- ↑ The 2010 Growing Business Awards
- ↑ The Europas European Startup Awards 2010 – The Winners and Finalists
- ↑ "The JC Profile: Errol Damelin, payday loan king". Jewish Chronicle. 3 October 2013. Retrieved 25 June 2014.
- ↑ Sandy Rashty (3 October 2013). "Jewish Care attacked over Wonga appearance". Jewish Chronicle. Retrieved 25 June 2014.
External links
- wired.co.uk, Cash machine: Could Wonga transform personal finance?, May 5th 2011 http://web.archive.org/web/20120908194930/http://www.cnbcmagazine.com/story/the-loan-arranger/1685/1/
- BBC Business News, Wonga: What makes money lender tick?, May 11th 2012
- CNBC Business, The Loan Arranger, September 2012 at the Wayback Machine (archived 8 September 2012)
- Errol Damelin official webpage