Building FinTechs Through Financial Crises
What Is The New Normal?
On the 12th of March - Vestigo moved their operations home, and it worked better than we anticipated. Daily video conferences are helping us to stay connected and to keep our objectives clear.
We have been holding advisory sessions with our portfolio companies to offer our experience and perspective on the current economic turbulence and uncertainty. We are sharing a great video and a brief write up on these activities in the "Staying Connected" blog below.
The next upcoming months will be particularly difficult. Our entrepreneurs will need to dig deep for their determination and courage as we must face the uncertainty and setbacks in the manner as we have always done - unhindered and undeterred.
We think the future remains bright for the majority of our firms. Some are already finding effective ways to adjust their business to uncover new pockets of growth. However, we do expect everyone to experience a brief delay in their plans lasting two to six months.
Beyond the immediate need to create new plans and check on capital levels, we are trying to understand what will be altered post COVID-19.
Few notable points:
- This is a great time to invest due to lower valuations and slower decision making by the venture industry.
- Incumbents will need to innovate to drive down costs. Startups focused on this aspect should find more willing partners.
- Every process that can go digital will go digital. This is wonderful for startups that are already digitally well positioned.
- Consumers will likely fall back to old and trusted brands making the familiar more valuable, driving more B2B traction than B2C in FinTech.
- Personal information will become even more exposed to the government, slowing down some of the protectionist measures and data privacy rules that were started in Europe and California.
- Fundamentals matter. They always have but moments like this reinforce the need to get things like pricing right or ensuring that your LTV/CAC estimate is robust and sustainable.
We hope you and your families are safe in these unusual times. We also welcome your thoughts. Please email us at MCasady@VestigoVentures.com.
—Dave & Mark
Envisions Interview
Building FinTechs Through Financial Crises
w/ Craig Welch, CEO at Kingfield
Staying Connected
In March we reached out to our leaders to discuss the predicament caused by COVID-19.
A few simply wanted to talk, while others required more involved and strategic advice. Without a doubt, these are remarkable times. We recognize the need, now more than ever, to remain connected and to help each other see this crisis through to the end.
As we all began to experience the fallout, it became clear that our companies need enough capital to withstand at least 18 months of economic turmoil. All companies were advised to reduce their operational expenses to the absolute minimum, hopefully extending their runway without additional funding. Beyond the most immediate measures in reducing their operational expenses, we advised them to project the potential impact on their customers' fortunes and in turn on their company’s bottom line. For every company the situation is different. However, most will see delays in revenues. On the other hand, we are happy to acknowledge that there are several firms in our portfolio that are seeing accelerated business opportunities.
Additionally, we have been helping our startups apply for the CARES Act SBA PPP. The application process is very convoluted, but we are seeing success as several companies were already able to get help.
We ended this first set of communications with a well-attended video conference featuring Craig Welch (Kingfield’s Founder & CEO). We think Craig’s perspective is invaluable. This is his third startup and third major economic crisis. The recording of our discussion is this month’s video blog.
The aforementioned communication will remain paramount as the situation develops. We continue having weekly check-ins with our portfolio companies and finding ways to support our CEOs.
—Halina
Portfolio Updates
Digital Assets Data
Digital Assets Data CEO and co-founder Mike Alfred shares his perspective on how to be successful in the financial services industry. Read on to see what Mike considers to be the five most important things for succeeding in your venture.
Charlie Katz
Hourly Workforce Shifting to Address Logistical Impacts of Coronavirus Pandemic
Information and timely communications are key to job safety and security. That's why Jobble keeps a close watch on the pandemic to make sure their communication is up to date. Jobble has a base of over 500,000 workes that can be quickly deployed anywhere in the United States to fill the gaps in our supply chains.
Vault is Partnering with Voya Financial
Voya will be offering Vault's platform to their workplace clients that are looking to help their employees to pay off student debt. Vault has three core offerings with various levels of assistance that employers can add as a benefit to their employees. By alleviating financial stress for existing workforce and prospective hires, employers can fight turnover and create a more productive workspace.
Vestmark and Axos Clearing
Vestmark partners with Axos Clearing to provide better solutions to broker-dealer and registered investment advisor clients. VestmarkONE platform offers integrated portfolio management, accounting, and trading. Paired together with Axos Clearing, which brings 18 years of tailored clearing solutions into the partnership, Vestmark can provide a truly unique solution for the users.
TowerIQ Freemium
TowerIQ added a Free Addition to their platform. This innovative approach allows the Company to attract prospective clients by having them try the limited edition of the service, see how much value it adds to their workflow, and come back to purchase the Enterprise version. Check out the article to see what features the Free Edition offers.
Wagmo + Bark Bright
Wagmo partnered with creators of BarkBox to take care of your pet's dental health. Bark Bright is an innovative solution for stress-free daily teeth cleaning for your dog. With Wagmo Extra plan, you can get the first three months of Bark Bright for free. Better teeth hygiene is paramount for pets' health and happiness.
Interesting Reads
Simon Chandler
Kevin Buehler
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