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All The Fintech - Oct 9th, 2017

Happy Monday! I actually had a much longer post here, but unfortunately the platform that I'm current
October 9 · Issue #4 · View online
All The Fintech
Happy Monday! I actually had a much longer post here, but unfortunately the platform that I’m currently trying out to send out this newsleter (Revue) crapped the bed and failed to save my entire post :(. In the interests of just getting something out this week, I’ll try and distill the same thoughts into a much shorter list and apologies in advance if there are typos! Without further ado, 10 bullets, of which some are reasons, on why I’m bullish on financial technology.
1) We are still in early innings when it comes to financial technology, and I’m super bullish. 
2) There are a ton of market headwinds and trends which will lead to opportunities to create large, market defining companies. Huge college debt load, low active use of credit cards, low home ownership, and much more. (Check out Benchmark’s Sarah Tavel for more reading)
3) There is no Facebook or Snapchat today in Fintech. One could argue that companies such as Venmo and Credit Karma are perhaps the closest on the consumer side perhaps…but still not quite close enough in regards to scale for DAU. The time to start to create a new financial brand is today for the future. Chase was founded in 1799, Amex in 1850, Visa in 1958, and PayPal in 1998. 
4) Creating products in financial services is difficult, one way to accelerate product experience is knowing what products to integrate and who to integrate with (e.g. what’s involved with integrating an ODFI for ACH, how to connect to Visa direct, etc)
5) Creating a large company in social is pretty much next to impossible today (IMO), the large social media companies dominate that space in relation to product execution and scale. Financial technology is the next closest market to social in terms of sheer size and number of addressable users, people interact with their finances every day. 
6) That being said, banks have an advantage of being hundreds of years old and I believe that most people like their money in an old, established institution.
7) The above norms are starting to change as demographics shift, real opportunity to build a brand (although this takes time too), see point 3. Starting to see this across several financial technology companies today (SoFi, Affirm, etc)
8) Financial products driven by technology need to be at least 100x better than what’s currently offered, and this needs to be obvious. One of the hardest experiences to create is an immediate result - something I’ll explore later…
9) Tech is not front office at banks, although this attitude is starting to change (I think GS is making the most moves towards moving this forward). Best engineering and product talent are not going to banks. 
10) More experienced founders and teams creating more financial services products + companies. While prior experience is certainly not a prerequisite, does offer significant advantage (i.e. point 4), this creates a feedback cycle where more information is shared into the market. The less knowledge/expert asymmetry there is, the better for the market and experience around esoteric aspects becomes less necessary (or can hire more experts when required)
TLDR - excited for what other products will be created in fintech as well as tracking what current companies do today to continue to capture marketshare and mindshare. Still a whiles to go :).

Top news IMO💯
Navient to Buy Fintech Firm Earnest for $155 Million -
The coming war over your financial data - Axios
Cryptocurrency 🤑
Once again, another week that’s heavy on crypto (it’s so hot right now): Fidelity going deeper on bitcoin, more ICO’s (including one from Overstock), and more regulatory attention to crypto.
Why Fidelity Is Mining Bitcoin and Ethereum
Cryptocurrency Flash Crash Draws Scrutiny From Watchdog
The Social Network Doling Out Millions in Ephemeral Money
$500 Million: tZERO ICO Will 'Raise a Fortune', Predicts Patrick Byrne
AngelList Creator Naval Ravikant Backs S&P-Style Cryptocurrency Fund
Oracle climbs on blockchain bandwagon with new cloud service
Lending 🤝
Online lending IPOs haven’t been the best asset class to invest in and Earnest acquisition wasn’t exactly the best exit, will this lead to a cooldown in investor interest in the space?
Funding Circle hits £50 million in revenue as CEO restates IPO ambitions
Payments 💳
Fin – Finterview: Flutterwave’s Iyin Aboyeji
Why are Amazon, PayPal meeting with bank regulators?
Will PayPal Get Paid…For Venmo?
People Are Getting Kicked Off Venmo For Breaking Its Very Long User Agreement
Wealth Management 💰
Is Yahoo a fintech company now?
Corporate Banking
JPMorgan created a new position to unleash emerging technology onto its investment bank - Business Insider
Fundraising 💵
UK-based insurance platform PremFina raises $36M from Rakuten, Draper Esprit, and others; provides software tools to insurance brokers and their customers (link)
PremFina, a British provider of financing software for insurance brokers, has raised $36 million in new VC funding. Rakuten and Draper Esprit co-led the round, and were joined by Thomvest Ventures, Emery Capital, Rubicon Venture Capital and Talis Capital. (link)
Roofstock, an Oakland-based online marketplace for single-family rental home investments, has raised $35 million in Series C funding. Canvas Ventures led the round, and was joined by return backers Lightspeed Venture Partners, Bain Capital Ventures, Khosla Ventures, Nyca Partners, QED Investors and FJ Labs. (link)
FlyHomes, a Seattle-based real estate buyers’ platform, has raised $2 million in Series A funding. Mark Vadon led the round, and was joined by Pritzker Group Venture Capital and Al Goldstein. The company also secured $2 million in debt financing. (link) 
Online real estate startup Home61 raises $4M led by FF Angel; the firm provides a brokerage platform, allowing users to find and market properties in Miami; raised $5M to date (link)
Product of the Week 🚀
Onchain Finance - cryptoasset metrics & ranks
IPOs & Exits 💸
Digital wealth manager Moneyfarm acquires tech behind fintech chatbot Ernest
Navient to Buy Fintech Firm Earnest for $155 Million
Random 🔖
San Franciso official pushes for taxes on robots
'Our minds can be hijacked': the tech insiders who fear a smartphone dystopia
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