German messaging app Hoccer raises a second round of funding with €50 million from Dirk Stroer, the CEO of Media Ventures GmbH, raising its valuation to a total of €100 million. Now with 51 percent of the shares in the Berlin-based company, Stroer is convinced that the security and anonymity Hoccer offers users will give it a competitive edge in the market, currently dominated by WhatsApp. He predicts that the demand for secure messaging will grow dramatically in the future, only serving to increase demand for the app.
Hoccer’s Berlin-based team of 15 is currently running two apps, Hoccer Classic and Hoccer XO, but these will soon be combined into a single messaging product, German blog VentureVillage reported. The resulting product will provide multiple features, for both B2C and B2B markets. The present versions grew by 2.5 million downloads in February alone, suggesting Stroer’s optimism is warranted.
Secure messaging is a significant advantage that should serve to strengthen Hoccer’s market position, at least in North European markets where the NSA-originated wiretapping and secret surveillance scandals caused widespread upset. Germany was particularly vocal about the recent disclosures of US intelligence agencies wiretapping many of Germany’s most senior decision-makers. So it is of no surprise that German investors have recently shown special interest in startups who emphasize the keywords “security” and “privacy”, expecting these concerns to show no signs of abating in the future.
European Union authorities continue to seek tech solutions to prevent NSA violations, but are yet to effectively address the issue. Data protection expert Jan Philipp Albrecht, a Green Party member in the European Parliament, said the Union needs a digital breakthrough to finally make Europe’s IT infrastructure and companies independent of interference.
Until the authorities manage to find a viable solution, Hoccer and its peers are set to continue to attract significant attention and popularity.