Stephany Kirkpatrick, CFP®

I see a lot of people wishing or working to bring ICOs back. But Initial Coin Offerings, as we've known them in 2017 / 2018, when projects raised funds directly from retail using immediately liquid tokens (or quasi), are never coming back. The problem with ICOs is an incentive alignment problem. Let me explain 👇 A/ If tokens are tradeable from day 1, then nobody is aligned on long-term value creation: it's a get-rich-quick scheme, and you get thousands of scammers to launch ICOs to speculators. From the investor perspective, your token is nothing more than a memecoin. There is 0 incentive to build anything long-term in that scenario. Note also that this ICO model can only exist in the non-security world. The only projects that did ICOs and are still here today are only here because their founders were missionaries who needed no incentives: they were here to create something in the world they deeply believe in vs getting rich. Founders like that exist: Vitalik Buterin (Ethereum), Martin Koppelmann (Gnosis), Stani Kulechov (Lend / Aave), Kain Warwick (Synthetix), Luis Cuende (Aragon)... are the first ones that come to mind, but they are the exception, not the rule. B/ If tokens are not tradeable from day 1, then you have better alignment in future value creation, but now you need to find investors that believe in your project long-term and are willing to wait (wait = risk + opportunity cost). Naturally, those investors will also ask for some level of investor protection, given the risk they take. In that scenario, you'll find fewer investors and want fewer investors because you don't want to give governance rights to people you don't know. In summary: In the non-equity assets world, pump dot fun has created the ultimate ICO platform. It solves the ICO incentive alignment issue by treating everyone as a trader/speculator. If you're a founder, you can try to build something long-term with a token you launched on Pump Dot Fun... but you have little financial incentive. At best, you bought a ton of your tokens at launch, and you sold high enough to now self-fund your project, but you're now facing a choice with this newfound money: eat glass and stare at the abyss for the next 5 years or.... go enjoy your money and your micro CT influencer status from the beach. Tough... In the equity world, ICOs (as people know them, where retail can broadly participate to fund a project) will *never* come back. Don't get me started on scammy crowdfunding platforms (that's for another post). The only ICO model that works is called the IPO. We can (and should) make IPOs more accessible to more companies, that would be an excellent thing for the economy (and I would love to see it happen). But, as of now, IPOs are for $10B companies growing 30% YoY, so it will take a long time and lots of regulatory work & political will to make IPOs accessible to early-stage companies. 

13

5 Comments

Curious about how we spot the most unobvious winners at seed? It’s simple - we invest in those we’d never want to bet against. In 2017 slice was a scrappy fintech financing smartphones for college students. Today, it’s set to become India’s first true digital bank, catering to the needs of India’s Gen Z. With this merger, Slice is poised to simplify digital banking for a billion Indians, establishing a new gold standard of customer-focused banking.

146

3 Comments

Today we're announcing Wallets. Wallets are the third account type on Unit, in addition to deposit accounts and credit accounts. Like other account types, they: - Carry a balance (example: $50) - Contain transactions (example: two ACH credits of +$25 each) Why do companies open wallets for their end-customers, instead of bank accounts? 1. Depending on the use case, wallets can be faster and easier to set up, with streamlined onboarding flows (subject to bank approval).  2. They can be a good fit for end-customers who don’t need the full suite of services that come with a traditional bank account. 3. They can be a good fit for use cases that limit how and where the money can be spent (e.g., closed-loop payments, FSA accounts). All Wallets use cases and onboarding requirements are subject to approval by your bank partner. How do Wallets work? Historically, banks partnered with companies by letting them manage a single FBO (For Benefit Of) account and requiring them to build a large number of processes / tools to manage it well. Including: ledgering, reconciliation, security, limits, statements, terms, oversight and more. These are very complex tasks that are achieved differently by every partner the bank works with. Unit’s implementation of wallets introduces standards that reduce the complexity. Wallets already include a lot of the important controls and features (example: wallets have a balance and transactions through one ledger, each wallet has associated limits and terms, and the bank has real-time access & oversight of all activities). This design benefits both sides. It helps companies work with safer and more intuitive entities like wallets, payments, transactions and cards. It helps the bank be in full control and have real-time oversight into every activity, across any program, in ONE place, with audit logs and permissions. You can find the links to guide + docs in our announcement: https://lnkd.in/eWXQ3gpv

240

4 Comments

The best thing with a front-to-back solution isn’t fewer integrations or licenses. I've seen system consolidations enough times by now. The best thing is: -- Let's start with the background -- The common view is that a simpler operating model, means fewer systems, which in turn reduces cost. That is true. What's often misunderstood is why. ▶ It's not the number of licenses. Three systems at $100k each -> $300k total. A broader system that covers all areas might come in below $300k. So there is potentially a direct cost saving, but it's often not huge. ▶ It's not integrations. With 1 system instead of 3, there are fewer Integrations. Each integration comes with a cost (to the vendor, or internal). Each integration also comes with a risk that data isn't sync:d correctly. But there is something more important. ▶ The biggest win is: less data management. An F2B solution reduces the number of places you need to perform the same type of data management. Each system needs to process corporate actions, orders, fees, taxes, accruals, subscriptions, manage instruments, etc. Fewer systems reduce the number of times a data management task needs to be performed. Ideally, each data management task should be performed 1️⃣ time. Find this valuable? click "..." and then "Save" Disagree or agree? Let's discuss in the comments! 

21

11 Comments

Great night with Headline: Fintech Panel Series💸 1) Despite the advances in digital payments, hundreds of millions of dollars continue to be processed through checks, representing roughly 20% of BILL transaction volume. 2) Given the well-established ACH infrastructure, consumer preferences still dominate the market. The key to winning in the fintech space today is creating a superior user interface (UI). Fintech companies are intensely focused on developing the best UI. 3) At Workee, we’ve encountered this as well - All big players are building ways to make money happen locally while swift remains the biggest system in the world yet. Thank you Henrique Ceribelli King Goh, CFA Matt Schrey Michelle F. and Headline for this event. #Fintech #Payments #Innovation #ConsumerTrends #EmbeddedPayments

27

1 Comment

Fin Capital’s Fintech CEO Pulse Report is out! We surveyed over 50 CEOs and C-suite leaders of private companies from our portfolio and the broader fintech industry during June and July 2024 to get a quick pulse on what’s top of mind for fintech’s leaders. Here are some key takeaways: Optimism in the Air: More than 60% of CEOs reported being bullish or highly bullish on the fintech industry for the second half of 2024. Regulatory Changes on the Horizon: CEOs identified Cryptocurrency, Open Banking, and Buy Now Pay Later as the top three sectors likely to see increased regulation by the end of 2024. CEOs Want Business Development Support: Beyond capital and fundraising, business development support emerged as the top area where CEOs seek investor assistance.For more insights, including comments from my colleagues Ren Riley, Logan Allin, Matthew D. Mann, CFA, and Stephanie Perez, check out the full report here: https://lnkd.in/euHK8-9B

33

2 Comments

Corporate card wars continue… Brex, Ramp, Rho, etc. American Express, Visa and Mastercard are also continuing to scale. Glorified reward programs, like Bilt Rewards, seem like interesting approaches, but is it not just a race to the bottom? So many companies are focused on rewards and niche markets, but the more appropriate path forward is workflow-driven solutions. The challenge is that the unit economics for card players are juicy, so if you partner on the commercial card side, you’re losing out on large attractive spreads. It’s a fascinating landscape with 100s of companies taking various approaches.

46

2 Comments

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.

17

3 Comments

Robinhood's stock closed yesterday above its 2021 IPO price for the first time in 3 years. Vlad Tenev leadership has been steadfast in the years after the GameStop saga. Moments like that coupled with the ‘22 market correction were hard things to manage a large team through, but he did it. Most importantly, he got them back to doing what they do best: shipping beautiful, industry-leading financial products at a crazy pace. He announced recently on a podcast they now have 8 product lines doing over $100m+. The laws of compounding will be in their favor. It will inevitably be a $100b+ company.

200

8 Comments

What should SaaS founders know about payments monetization? Mike Lyon and I dive into the basics of integrated payments strategies including: -Identifying your opportunity -Finding the right payments partner -How to get started -Thinking with the end (exit!) in mind Thanks to Vista Point Advisors for the opportunity to educate your audience on the immense opportunity that integrating payments can offer! Utopaya #IntegratedPayments #EmbeddedPayments #ISV #SaaS https://lnkd.in/gwEf_HM9

50

2 Comments

I know SaaS businesses are beloved in the search world by both technical and non-technical folks. Why? 👇 They're remote, utilize economies of scale arguably better than any other business model, and ✨ recurring revenue ✨ The daunting part? The jargon and technical understanding required to talk SaaS. Here's a post to help you out ⬇️

8

Ever received a cold email that left you laughing? Just got one pitching a media request to our simplified payments solution for... farmers? 😂 After a good laugh (and a quick check to confirm we weren't suddenly targeting agriculture), I realized it was a classic case of automation gone haywire. Apparently, our targeting for field services software got lost in translation as Tilled providing payment solutions for farmers. Don’t be like Krantz and blindly trust AI 🫣 What's the funniest cold email you've received? #ai #startups #payments #farmers

44

9 Comments

Make sure your investors and funding partners don’t inadvertently kill your business. Beyond just putting cash into your company your funding partners need to fall into one of the three following buckets: 1. SWEET MONEY: funding that’s such a sweet deal you can’t possibly turn it down. Supportive grant programs with non-onerous funding requirements fall into this bucket. 2. SMART MONEY: people who can make connections, add legitimacy, guide you, and know how to execute investments with standard terms. Savvy angel investors and professional investors fall into this bucket. 3. SHHHHHH MONEY: silent investors who want to support you and are willing to lend a hand when asked fall into this bucket. Funding partners can create bad corporate structures, distract you from your customers, or create burdensome requirements and kill your company if you’re not careful. We’ve been very fortunate to have amazing funding partners, when I looked at why it’s so easy to work with them it’s because they fall into one of these three buckets.

23

2 Comments

Pivot - TIME = Money Loan Origination: TIME (Save 8 to 12 Hours a week) = MONEY (You and your Team can save more than 29% using Next Generation Presentation software that does the Three (3) critical parts of Loan Origination, not just one. A)   Prequalification – Interview Process builds Relationships and gathers critical Information for the loan transaction B)   Presentation – Terms and Scenarios must be fully Detailed and Presented for ALL types of loans C)   Compliance – The Loan MUST fit ALL Compliance terms and Guidelines To schedule a 15 minute Executive Overview of the software, click or copy and paste this link: https://lnkd.in/gy2QyYAR. You will be given a Promo Code for a 30 day free trial and no credit card is needed. www.golanis.com [email protected] 805-498-4843 #loans #mortgagesoftware #compliance  #software

1

Pivot - TIME = Money Loan Origination: TIME (Save 8 to 12 Hours a week) = MONEY (You and your Team can save more than 29% using Next Generation Presentation software that does the Three (3) critical parts of Loan Origination, not just one. A)   Prequalification – Interview Process builds Relationships and gathers critical Information for the loan transaction B)   Presentation – Terms and Scenarios must be fully Detailed and Presented for ALL types of loans C)   Compliance – The Loan MUST fit ALL Compliance terms and Guidelines To schedule a 15 minute Executive Overview of the software, click or copy and paste this link: https://lnkd.in/gy2QyYAR. You will be given a Promo Code for a 30 day free trial and no credit card is needed. www.golanis.com [email protected] 805-498-4843 #loans #mortgagesoftware #compliance  #software #mortgagebrokers

1

Pivot - TIME = Money Loan Origination: TIME (Save 8 to 12 Hours a week) = MONEY (You and your Team can save more than 29% using Next Generation Presentation software that does the Three (3) critical parts of Loan Origination, not just one. A)   Prequalification – Interview Process builds Relationships and gathers critical Information for the loan transaction B)   Presentation – Terms and Scenarios must be fully Detailed and Presented for ALL types of loans C)   Compliance – The Loan MUST fit ALL Compliance terms and Guidelines To schedule a 15 minute Executive Overview of the software, click or copy and paste this link: https://lnkd.in/gy2QyYAR. You will be given a Promo Code for a 30 day free trial and no credit card is needed. www.golanis.com [email protected] 805-498-4843 #loans #mortgagesoftware #compliance  #software #efficiency

1

Pivot - TIME = Money Loan Origination: TIME (Save 8 to 12 Hours a week) = MONEY (You and your Team can save more than 29% using Next Generation Presentation software that does the Three (3) critical parts of Loan Origination, not just one. A)   Prequalification – Interview Process builds Relationships and gathers critical Information for the loan transaction B)   Presentation – Terms and Scenarios must be fully Detailed and Presented for ALL types of loans C)   Compliance – The Loan MUST fit ALL Compliance terms and Guidelines To schedule a 15 minute Executive Overview of the software, click or copy and paste this link: https://lnkd.in/gy2QyYAR. You will be given a Promo Code for a 30 day free trial and no credit card is needed. www.golanis.com [email protected] 805-498-4843 #loans #mortgagesoftware #compliance  #software #efficiency #mortgagebrokers

1

An important discussion that I see first hand in both my very deep tech focused investing industry in venture capital and as an ethnic minority. The anti-woke discussion MUST not derail critical corporate DEI initiatives but the lesson is we need to more than box tick. Fabric Ventures Money20/20

7

Love the down to earth assessment in this article from SaaStr. I also love the window into a world that I am unfamiliar with - so much to learn and lots of thought-provoking articles 🧠 #AI | #GenAI | #MachineLearning

3