17 October 2017
Rupert Bull

89268

Rupert Bull - Finceler8

4Posts 29,003Views 0Comments

What does FinTech investment success look like?

30 March 2017  |  6900 views  |  0

CBInsights quote "Venture Capital Funnel Shows Odds of Becoming a Unicorn Are Less than 1%" seems to imply everything else is failure. I strongly disagree.

They reinforced this impression by saying further down in the article "70% of companies end up either dead, or become self-sustaining (maybe great for the company but not so great for investors)."

This is wrong. I think FinTech investment success means creating a self-sustaining company. Becoming self-sustaining is good for the founders, the early stage investors and the employees. It is also good for the broader economy if more companies survive and grow - just think of all the spin off professional service revenues that ensue.

If this were to happen at scale it would also mean less capital was wasted and therefore less capital would need to be raised and invested. This would be disruptive to the traditional VC industry - since more could be achieved with less and hence the management fees would shrink. It is perhaps less good for the professional VC and therefore perhaps CBInsights whose bills they pay!

How do we get there? We need to invest more in nurturing companies early on. This is something that the current eco-system does badly. Finding the first clients and developing the platform for growth are exceptionally hard - much more so than creating great code that works. It is time consuming and costly but critical.

First time entrepreneurs need a roadmap and support - both tactical and strategic. Barriers to engagement also need to be reduced.

I would love to see the emergence of an activist early stage investor. If you are one please contact me. We might be able to change the world together!

 

TagsInnovationStart ups

Comments: (0)

Comment on this story (membership required)

Latest posts from Rupert

What does FinTech investment success look like?

30 March 2017  |  6900 views  |  0 comments | recomends Recommends 0 TagsInnovationStart ups

Why professionalising entrepreneurship and sales focus are key for startup success

20 January 2017  |  6064 views  |  0 comments | recomends Recommends 0 TagsInnovationStart ups

Is technology still the edge for FinTechs?

13 December 2016  |  9075 views  |  0 comments | recomends Recommends 1 TagsInnovationStart ups

Rupert's profile

job title Founder
location London
member since 2016
Summary profile See full profile »
I am passionate about helping early stage companies to grow and succeed. I help improve FinTech collaboration between FinTechs and their customers.

Rupert's expertise

Member since 2016
2 posts0 comments
What Rupert reads
Rupert writes about
Retail bankingInnovationStart ups

Who's commenting on Rupert's posts