What Are We Thankful For In FinTech?
In Giving Thanks
As we approach the holidays, the rhythm of life at Vestigo shifts. Deal activity slows down, giving us more space to reflect on what we’ve learned over the past year. Ian and Mike buckle down on audit work and planning for next year with the boards they serve on. Frazer invariably retreats into some ambitious data project. I don’t know that it will be the same this year.
It is fashionable to write off 2020 as an irredeemable, "lost" year. We are deeply conscious of our good fortune at Vestigo in that our families have been safe and that we are able to continue to do our jobs with modest disruption. Our portfolio companies have proven their resilience and we have been able to give our leadership teams the support they need.
And despite our role as financiers of disruption, we are thankful for the world of financial services as it exists today. The banking system has fulfilled its job in protecting consumer deposits and facilitating relief checks to those in need. The equity markets are near all time highs and the credit markets have weathered the storm. Debit and credit card networks continue to function, enabling people to get food and necessities delivered without endangering themselves or others.
We are grateful. All of us are grateful for the privilege we have of working together. We appreciate the face-time we get with the entrepreneurs we invest in, even if it's digital. We understand that the extra time we’ve been given with our families this year is a blessing.
So as we gather in the spirit of thanksgiving next week (partitioned by a screen or not), I hope we can all banish "after covid" thinking for a few hours and take pleasure in the people we are with and the tasks at hand. Thank you very much for your continued interest in what we're thinking and doing at Vestigo. We'd love to hear what you're thankful for in 2020 (at mcasady@vestigoventures.com)!
—Mark & Dave
Envisions Interview
What Are We Thankful For In FinTech?
w/ Adam Levine, Co-Head of Digital Partnerships at BNY Mellon
Crossing the Enterprise Chasm
Startups with credible founders and an enterprise go-to-market strategy are by consent (at least among VCs) the most repeatable strategy for making money investing in early-stage technology companies. Yet at Vestigo, we’ve seen dozens, if not hundreds of early stage fintechs with credible if not superlative founders looking to sell their product into banks, insurance companies, alternative lenders, asset managers, hedge funds, or some other brand of financial services incumbent; most of them will fail.
The ability to recognize (by guesswork or analysis) which companies will succeed is what we are lucky enough to be paid to do. We spend a lot of time thinking about this and talking to incumbents about their problems and how they like to work with startups.
This month, Frazer spoke to Adam Levine, who co-leads digital partnerships at BNY Mellon about their innovation program and how startups should approach partnerships (if they want to succeed at least). We would encourage you to check out their conversation above.
Adam makes two important points about (1) client needs and (2) expectations which startups need to think about as they develop their first enterprise relationships. In order to succeed, startups must have the client needs of their enterprise customers in mind and be able to answer questions such as: How does my product help my customer’s customers? What threats might using my solution expose my partner (or their clients) to? How long will it actually take my enterprise customers to diligence my balance sheet, cyber security solutions, and team? How robust does my balance sheet need to be to work with this customer?
While having these answers by no means guarantees success, this is a great place to start to avoid pitfalls, frame your enterprise sales messaging, and not outstrip your cash runway while waiting on procurement.
—The Vestigo Team
Portfolio Updates
Wagmo Continues to Innovate Pet Insurance
Christie Horvath (CEO) and Alison Foxworth (COO) were included in Entrepreneur's 100 Powerful Women! Wagmo has also received approval in Texas while developing a crucial partnership with Boost to bring them one step closer to their vision of a digitally-focused experience of pet-insurance, covered by Yahoo Finance.
Entrepreneur Staff
Interesting Reads
Karen Hao
Portage Ventures
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