Peter Hartz, former VW manager and namesake of the “Hartz IV” unemployment benefit, is preparing the market launch of his own fintech. The 81-year-old is expected to publish a smartphone app with his company Timefonds next year, as “Gründerszene” found out.
“Testing is ongoing and will be completed by early next year. The final launch is then planned for the second half of 2023,” said Colin Altmeyer, CEO of Timefonds AG, when asked.
The Saarbrücken start-up is all about so-called working time accounts. Employees can use it to save part of their gross salary or payments for overtime and vacation not taken. The principle does not work via a time quota, but the hours are converted into salary.
They can use the credit later, for example to finance a sabbatical or to retire earlier. “We want to enable people to organize their working and living times more flexibly, digitally on their cell phones,” Altmeyer explains the vision behind Timefonds.
Working time accounts have been around for many years. Peter Hartz introduced this during his time as Human Resources Director at the Volkswagen automobile group. However, the concept has not yet caught on with the general public.
Timefonds boss Altmeyer sees the high administrative costs as the cause. This is where Timefonds wants to start with an app. Employees should be able to save digitally for their lifetime, and there should also be tips and information on how to prepare for a break lasting several months, for example.
In terms of design and usability, Hartz and his team want to orientate themselves towards successful apps from the fintech industry. Altmeyer: “Offers like N26 and other fintechs show very well what is possible with just a few clicks.”
A year ago, “Gründerszene” reported on the ex-manager’s start-up plans. At that time, apart from a rough description of the company in the commercial register, not much was known about the project.
Timefonds now has six permanent employees, including several programmers. The start-up has also found a partner bank that invests the money saved in the account app on the capital market. Chef Colin Altmeyer does not want to name the name yet.
One difficulty for Hartz’s start-up is convincing enough paying employers of the benefits of the time value account app. Because the model does not always lead to the desired recovery effect.
“No company would have anything against saving a lifetime through payroll accounting,” explains Altmeyer. “It becomes difficult when employees no longer compensate for their overtime and save vacation days instead of using them for vacation.” Employers must ensure that employees remain relaxed and productive.
Altmeyer also sees a need for clarification on the employee side. The Hartz confidante speaks of a “chicken and egg” problem: because time value accounts have so far only been offered by a few employers due to their complexity, many employees are not aware of them.
Altmeyer is therefore hoping, among other things, for the help of influencers with a wide reach. Already to sensitize young employees to the topic. “A print advertisement in the ‘Frankfurter Allgemeine Zeitung’ is definitely not the right way,” says Altmeyer.
However, the start-up does not want to choose its future advertising partners based on reach. According to Altmeyer, influencers from the specialist field who focus on financial topics are of particular interest: “Ultimately, this is how we reach our main target group.”
But it will still be a while before that happens. According to Altmeyer, the Timefonds app is currently being tested by around 50 people and the first companies. In order to cover the costs for marketing, the start-up also depends on capital. So far, Timefonds AG has been mainly financed by Peter Hartz and his son Michael.
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Also on board as a shareholder is the former VW manager Josef Fidelis Senn. Timefonds boss Altmeyer does not rule out the entry of further financiers, also from the VC sector. He expects investments in the seven-digit range.
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