Amy Oswick

Startup neobank Mercury is taking on Brex and Ramp with new bill pay, spend management software "...Digital banking startup Mercury is layering software onto its bank accounts, giving its business customers the ability to pay bills, invoice customers and reimburse employees, the company has told TechCrunch exclusively. The additional features puts the company in even more direct competition with the likes of Brex and Ramp, two rival fintechs that have for years been fighting for market share in an increasingly crowded space..." #billpay #spendmanagement #neobank #fintech _____________________________________________________ If you want to immediately see new content that I curate 👉🏻 Ring my bell (🔔) and follow #informationbanker or if you want to get the posts that got noticed in my weekly What’d I miss newsletter, subscribe here: "https://lnkd.in/d5_KvWwu"

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Founder secondary stock related business ideas – marketplaces and funds for secondary txs. My notes: 1) When you’re fully VC backed, it’s simplest to sell as part of a round. You already have the buyers lined up (the investors in that round, or the ones who wanted in but didn’t get an allocation). Either opportunistically if the round is heavily oversubscribed, or done intentionally up-front as a part of the round.  2) Founders don’t really think about doing secondaries outside of rounds. And even if they did, they’d go via their insiders. The investors generally have ROFRs on secondary txs too. 3) For the great companies, this is a solved problem (doing it as part of a round). For the companies that aren’t already hot, there’s value in creating demand for their shares. 4) For companies that raised a round, are making good money, but are no longer VC track and not growing fast, there may be some value there. But why not negotiate a distribution to all investors? 5) There’s demand from investors that don’t have access to hot private companies to get access, but this is tough too. It’s a marketplace for lemons: the sellers have all the info. The buyer knows less than the seller. The seller will either sell only if desparate, or if they believe the buyer is overpaying, based on their information asymmetry.  6) Some companies are utilizing the high-demand dynamic by doing big secondary offerings, via a network of kind-of SPV middlemen, e.g. CoreWeave. 7) Founders don’t want employees selling unless they can control price, and access/captable. Generally have veto rights. 8) "Secondaries are bought not sold." 9) If there are 5-10 big winners, then a marketplace doesn’t really work. If 100+, then it might. 10) Buying stock in private companies in exchange for ongoing dividends could be interesting. Would founders sell at an attractive price, relative to the dividend, though?  11) But also, people have made good money on secondary stock purchases (SpaceX, others), and the dollar amounts involved in the transactions are often large (7-8 figures, sometimes more). See also: Chris Sacca’s Twitter secondary stock purchases. 12) You can sell financial products people want to buy (like Destiny Tech100), or you can buy financial products people don’t want to buy at your price (yet) but where you can own it long enough that they’ll come around. A fund seems like the better move, but then you’re an investor, not running a marketplace. See also: EquityZen, Collective Liquidity, 137 Ventures. Destiny Tech100, Carta (Carta exited the secondary business). Thank you to mike yu, Timothy Wee, David Zheng 🍉, Eric Chen, Justin Mares, and Chris Yeh, for your quick reactions and input.

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2025 State of Fintech report from Simon Taylor just dropped! 113 pages. Covers a lot. My biggest take away is that fintech is still so early. Fintech has ~1% market share of the $30 trillion financial services market...but so many things are still early. - Hyperscalers are just getting started. There are 5+ companies worth $30+ billion (think of Stripe, Revolut, Nubank, Robinhood). But many are just getting started and are agressively expanding products. 5 years ago, it seemed impossible one of these could be worth more than JPM or VISA. Now, it's doable. Look at Robinhood. 5 years ago their average account balance was $2k. A tiny customer no incumbent cared about. Today, the average account balance for a transfer is $81k (this is happening due to the 1% match). 40x higher. That represents a mass affluent customer, something banks very much care about! -RTP is just getting started. Great adoption of PIX / UPI abroad, but they are just starting to innovating w/ putting credit on top of real time rails. And RTP in the US is really only now getting going. -AI is just getting started. Of the $30 trillion of revenue in financial services,. 90%+ goes to humans doing labor. Now software can do what humans used to. This creates amazing opportunities not just for efficiency, but rebundling. - Stablecoins are just getting started. Stripe make their largest every acquisition, Bridge, for $1 billion. And Stablecoin transaction volumes are ramping. I could go on, but you get the point. Fintech is young and more is up for grabs than ever. Enjoy the report. Oh and Simon and I recorded a live discussion, we'll have that out this weekend, stay tuned! https://lnkd.in/gRjSnkQ7

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Here's an interesting way for limited partners to exit their investments early! If you're concerned about LP illiquidity, you may want to consider this option.

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Block, the parent company of Square and Cash App, aims to leverage its dual ownership to create synergy between its point-of-sale software and peer-to-peer payments app. Jack Dorsey, Block's founder, highlighted the advantage of having relationships with both merchants and consumers, stating it's a rare position in commerce and payments. Ryan Budd, Cash App's head of financial products, hinted at plans to integrate a small business experience into Square and incentivize Cash App users to engage with Square merchants. Block is focused on connecting Cash App's consumer base with Square's merchant network, aiming to transform Cash App into a consumer app for interacting with Square merchants. This move aligns with Block's strategy to dominate various aspects of the consumer ecosystem and potentially monetize consumer spending data for advertising purposes. Read More Here: https://lnkd.in/eh-8KS9V Eugene Tsay Wade Robison John O'Beirne Emily C. Chiu Eileen Wiens Jim McKelvey Branded Hospitality Ventures #innovation #venturecapital #hospitality #technology Owen Jennings (OBJ) Brooke Ellis Jamie (Russo) HicksMing-Tai Huh

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Sony Bank launched NFT platform where users can collect and trade the NFTs they’ve received as promotions.Security token may be on a private blockchain, which is the regulator’s preference, SNFT uses the Polygon public blockchain. In order to make the experience more user friendly for new users, some apps try to hide blockchain functionality, such as the need to pay for gas fees. However, SNFT does not, although it lets users on-ramp with credit cards. Right combination of public and private blockchain for achieving relevant business goals. For making user experience better uses an on-ramp so users can pay with credit card instead of gas fees. #blockchain #nft #publicblockchain #privateblockchain #hybridblockchain https://lnkd.in/dMTqwmME

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Small, focused fintechs are shaking things up in banking and payments. Payments remain the crown jewel of fintech, pulling in $21.4 billion in H1'24. But beyond the headline numbers we're seeing a shift towards fintechs that excel in specific, high-value areas: → Payments insurance → Unsecured lending → Insurance claims These companies are succeeding by tackling real issues with smart tech, not just adding bells and whistles. I've seen this shift coming and it's exciting to see it materialize. There is also increasing investor attention on emerging markets like Africa, Indonesia, and the Philippines. Places that were off the radar are now hotbeds of innovation due to massive unmet needs and leapfrog potential. The generalists had their day in the sun. For those of us who've been in the game a while, we know that the next big winners will be the specialists who can execute flawlessly in their niche. If you're in the trenches of specialized fintech I’d love to hear about what you’re seeing firsthand. Leave a comment.

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Politicized reg of banks: no fintech. Fear of ruin makes banks compliant: no crypto. Bank compliance officers are paid to be risk averse: no upside for innovating. Fintech and crypto startups are unbanked & underbanked. Incumbents benefit. Donate to build more chokepoints.

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The bankruptcy of Synapse, where $100 million of customer funds is missing, raises serious concerns about bank-fintech partnerships and the need for rigorous due diligence. This situation underscores the immediate need for banks to reassess their partnerships and prioritize consumer protection. Stricter regulations and enhanced oversight could become the norm, ensuring only fintechs that can withstand scrutiny will thrive in the financial ecosystem. #Fintech #AI

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Q3 is out and Q4 is in!  This is a great read about Base10's strategic switch showcasing how Carta is simplifying fund administration for emerging managers, which is especially important now rolling into the year-end busy season. 

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Has the SEC gone too far this time? With the Wells Notice to RobinHood, the SEC is essentially pushing for Crypto PROHIBITION and not regulation. Consider that RobinHood was FORCED to offer crypto through a NON Broker Dealer affiliate as the SEC & FINRA would not allow the BD a "non securities" license. Today, those regulators seem to be claiming that the crypto products they offer ARE securities & the NON BD is breaking the law. Programmers would call such a contradiction a "deadly embrace" where the rules are such that NO FIRM CAN COMPLY. Thus, this action is emblematic of this administration attempting to PROHIBIT the 40% of Americans estimated to own crypto from doing so... FWIW, the future of capital markets is digital & the rest of the world is starting to embrace it. As a result, if this administration is re-elected and continues on its Prohibition path, I suspect that it will be as successful for crypto as prohibition was for alcohol... (with similar results in increased fraud, etc)

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Digital lenders vs. traditional banks: Who will win when rates drop? My take might surprise you. As we look towards possible rate reductions this fall, companies like LendingClub and SoFi are particularly well-positioned. Here's why: 1 - Online lenders can typically respond more quickly to rate cuts than traditional banks. 2 - These firms have a strong incentive to prioritize growth, often translating to more competitive rates for consumers. 3 - This combination creates what I view as an opportune moment for investment in the digital lending space. In particular, LendingClub's consistent profitability over the past three years is a point of interest. Digital lending is evolving rapidly and we're at a pivotal juncture. How do you see fintech adapting to the changing interest rate environment? For a deeper dive into this topic, including additional market insights, check out the full article in The Information linked in comments.

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Firms are being fined left and right for not monitoring social apps like What's App. See the article below. The only firm that makes this easy is our portfolio company, Archive Intel Get in touch with them and Larry Shumbres today to make sure you are compliant and stay out of harm's way!

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Coinbase founder and CEO Brian Armstrong's best advice for a pre-product/market fit startup “If you’re pre-product/market fit, the best advice that I have from that period is: action produces information. Just keep doing stuff.” … “Even if you’re not sure what to do, just do anything. Because when you do it, it’ll produce some information—people liked it, they didn’t, etc.” Brian shares that there were many times in the early days of Coinbase when he just shipped something rather than debate it endlessly: “There were a couple of times where the minute I shipped it, I knew we built it wrong. But I now had an idea of what to do next. And I only would’ve had that idea by actually going through the exercise of building it.” He concludes: “My other favorite analogy for this is that it’s like you’re at the base of a mountain that’s shrouded in fog. You’re looking up at the mountain and trying to figure out how to get up there, but you can only see three or four steps ahead because the fog is so thick. So you have to just take steps into the unknown. And when you take three steps, another three steps will be revealed ahead of you. And sometimes you’ll end up on some local maxima and have to retrace your steps… But most people in life don’t take the steps into the unknown because it’s scary.” (h/t @brian armstrong, Startup Archive )

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🌟Innovative VC Firm Overcomes Exits Drought with Secondary Sales🌟 ⛵Navigating a challenging landscape where exits are scarce, Santa Barbara Venture Partners (SBVP) has pioneered a novel approach to sustain its growth and attract investors for its second fund: secondary sales. Instead of waiting for traditional exits like IPOs or acquisitions, SBVP opted to sell shares of its portfolio companies, demonstrating its ability to generate returns for investors and stand out in a competitive market. 🎤According to Dan Engel, founder and managing partner of SBVP, these secondary transactions have been a game-changer, sparking investor interest and bolstering the firm's credibility. By leveraging its recent successes, including a lucrative stake in sports-betting company DraftKings Inc.' acquisition of digital lottery app Jackpocket, SBVP seized the opportunity to return profits to its limited partners (LPs) and pave the way for its second fund. 💡Engel highlighted the challenges faced by young VC firms in raising subsequent funds, particularly amid a downturn in exit activity and heightened investor scrutiny. With traditional exit routes becoming increasingly elusive, the pressure is on for firms to demonstrate tangible returns and establish a track record of success. ✨"For us, secondary sales have been a game-changer. They've helped us return profits to our LPs and attract investors for our second fund," said Dan Engel. 💰For SBVP, the decision to pursue secondary sales was driven by the need to provide liquidity to LPs and validate its investment thesis in the eyes of prospective investors. By strategically offloading portions of its holdings in high-performing portfolio companies like Bark Technologies and Rad AI, SBVP not only generated substantial returns but also bolstered investor confidence in its ability to deliver results. ⚠Despite the complexities and potential stigma associated with early share sales, Engel emphasized the importance of prioritizing investor returns and seizing opportunities to unlock value for stakeholders. With a focus on profitability and transparency, SBVP remains committed to its mission of delivering sustainable growth and maximizing returns for its LPs. 🔍 "Returning profits to our investors is our top priority. By strategically selling shares, we're proving our commitment to delivering results and driving value for our stakeholders," added Engel. As SBVP continues to explore secondary transactions and expand its investor base, the firm stands as a testament to innovation and resilience in the face of market challenges. 🚀 ✅ Looking to raise capital for your #fund and increase the international pool of your LP #investors?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #VCInnovation #SecondarySalesSuccess #InvestorReturns #ValueCreation 

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Wherever you go, Peter Piatetsky, bankers and regulators should follow! If you are a #RegTech or #FinTech founder like Peter and Julian Vasilkoski (offering the fastest, most accurate, and most reliable financial crime risk screening solution), Entrepreneurs Roundtable Accelerator wants to meet you! Applications are now OPEN for ERA's Winter 2025 cohort (details below). Or, maybe you're like Ralph Nanad, CPA and Bhav Bhela (using AI to streamline your corporate reporting), Baptiste Bouvier (building the future of regulatory intelligence), or Max Klein and Chuck Blake (AI-powered productivity for wealth management), let's talk - or apply to ERA now! ✍ Apply: https://lnkd.in/dqz985D 💰 Companies selected to participate in the four-month program will receive an initial investment of $150K on a 6% post-money SAFE and the potential for follow-on funding. 🗽 ERA is New York City’s leading technology accelerator and early-stage venture capital fund. Since its founding in 2011, ERA alumni companies have raised more than $2 billion in investor capital and collectively exceed $10 billion in market capitalization. 🗓 Deadline: November 4, 2024 📅 Program start date: January 13, 2025 #venturecapital #technology #funding #startup Castellum.AI 10clear DiploAI LEA (getlea.io)

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Fascinating article here on #memecoins. At Exorde Labs, memecoin trading desks use our data to stay ahead of their positions. “…there is “no intrinsic value” in memecoins and there is no “rhyme or reason” to which ones will succeed.”” Alan Jagolinzer wrote about the social-psychological manipulation in crypto in his article here. Thanks, Alan for your Bluesky post where I picked this up.

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👏 It’s an exciting day for fintech! After more than a decade in the making, the CFPB published its final 1033 rule, which protects consumer financial data access. I spent years negotiating Plaid's first data access agreements with banks; limited regulatory guidance made this exceptionally challenging. Here is a quick recap on what happened, and - most importantly - what it means for fintech founders. ❓ What is 1033? 1033 is a section of Dodd Frank that states that a bank must make a consumer’s financial information (including txn detail) available to them in a portable format. Its critical to the functioning of fintechs and the millions of consumers they service. 🗞️ What happened today? The CFPB issued a FINAL Rulemaking for Dodd Frank Section 1033, which provides eagerly awaited details on exactly HOW banks, aggregators, and fintechs are expected to work together to make data available to consumers (data fields, format, fee structure, governance etc.). The timeline for compliance ranges from April 1, 2026, to April 1, 2030 depending on institution size​​. 👉 What does this mean for fintech founders?  👍 No additional bank fees - Several large banks have threatened to charge for data access - which would almost inevitably be passed on to the fintech customers of aggregators. The proposed rule prohibits this, which is a win for fintechs. (The downside of this is that aggregators still need to align incentives with banks in the absence of fees…) 👍 No technical standards - The rule is not prescriptive with regards to how the APIs are constructed, but does encourage standardization. This is good for fintechs because it allows the market to drive the solution and encourages more innovation on the aggregator side. We expect this to result in better data access for fintechs. Additionally, the emphasis on standardization will make it easier to retrieve and use consumer data across different financial institutions. 🚩 New Responsibilities - The proposed rule does impose some responsibilities on fintechs - notably, to disclose how the data is used, only use data for the consented use case, honor customer deletion requests, and to refrain from selling consumer data. Fintechs - even young ones - should start thinking now about how to comply and to consider these requirements in future product rollouts. Many of these terms are already included in aggregators' terms of use.  Additionally, all data access must be through APIs; screenscraping is prohibited. 👎 No protections for brokerage & payroll data access - While the rule explicitly covers bank accounts (deposit, credit, debit, prepaid), it’s silent on brokerage account & payroll data access, which is non-ideal for any fintechs accessing these categories of data today. Shameless VC plug: If you're an early stage fintech founder building something cool + world positive, let's chat at M2020! cc: Obvious Ventures

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