Name: Funding Strategy - Producing Significant Growth
Uploaded: 2023-10-04T13:17:00.882Z
Duration: 180.08

FF3 FUNDING STRATEDGY.mp4

FF3 FUNDING STRATEDGY.vtt

ENGLISH 

{{00:00:08}}
So how I prioritize focusing investment
is typically on revenue, especially

{{00:00:13}}
right now in the current economic
climate of FinTech, I think we're

{{00:00:15}}
having a right sizing two years ago.

{{00:00:17}}
I think capital was bananas and
there was inflated valuation and

{{00:00:21}}
now the economy is right sizing and
companies valuations are getting more

{{00:00:26}}
in line with where they should be.

{{00:00:28}}
And so I think that investing capital
where you can actually make your

{{00:00:33}}
business thrive and successful revenue.

{{00:00:36}}
Making money is the bottom line.

{{00:00:38}}
I think it's especially important
right now when capital is tight, right?

{{00:00:42}}
You want to be a cash conscious
business and watch your burn rate

{{00:00:47}}
and really just invest in those
that revenue line that adds to your

{{00:00:51}}
valuation and your long term success.

{{00:00:54}}
Yeah, the piece of the strategy
that worked the best for us, as

{{00:00:58}}
simple as it sounds, is traction.

{{00:01:00}}
So show that there's an opportunity,
not only just idea market fit,

{{00:01:04}}
but product market fit that
people are willing to pay for.

{{00:01:07}}
Whatever service or solution that
you're providing, and that's where

{{00:01:09}}
we found a lot of opportunity.

{{00:01:11}}
Yeah, we growth is always a great
strategy for attracting investors.

{{00:01:18}}
Getting as much traction as you can
possibly out of the gate which means

{{00:01:22}}
building a great product and finding the
right market to deliver that product into.

{{00:01:27}}
And we really did accomplish that in
the first few years of the company.

{{00:01:31}}
We really did.

{{00:01:32}}
achieve some significant
growth those few years.

{{00:01:35}}
And that made it much easier for us
to go and find and attract investors.

{{00:01:42}}
In looking for early stage investment
partners, one of the most important

{{00:01:46}}
things was strategic alignment
of capabilities with our goals.

{{00:01:50}}
For instance, when you're trying to
build a nationwide digital neobank and

{{00:01:54}}
channel specifically for physicians,
dentists, and veterinarians.

{{00:01:57}}
It's incredibly important to have an
investment partner that has experience in

{{00:02:01}}
the financial space, the banking space,
the healthcare space, or preferably all of

{{00:02:05}}
the above if we can find the right ones.

{{00:02:08}}
We're very lucky that we have strong
customer base with good revenue and

{{00:02:15}}
capital efficient business, which
means we don't often have to raise

{{00:02:19}}
and haven't raised too much to date.

{{00:02:22}}
So we haven't gone through the
process of attracting early

{{00:02:26}}
stage investors to the business.

{{00:02:28}}
But what I'm finding is based on
as we're getting deeper into the

{{00:02:31}}
market and the problem space we
operate in, how much we can help.

{{00:02:36}}
We are now using our existing
investor base and the network in

{{00:02:39}}
general to find the right type of
investors who've been in the market,

{{00:02:43}}
who've been in the industry of.

{{00:02:45}}
Helping banks solve problems.

{{00:02:48}}
So that's, so we're, basically
activating the network on that front.

So how I prioritize focusing investment
is typically on revenue, especially

right now in the current economic
climate of FinTech, I think we're

I think capital was bananas and
there was inflated valuation and

now the economy is right sizing and
companies valuations are getting more

And so I think that investing capital
where you can actually make your

I think it's especially important
right now when capital is tight, right?

You want to be a cash conscious
business and watch your burn rate

and really just invest in those
that revenue line that adds to your

Yeah, the piece of the strategy
that worked the best for us, as

So show that there's an opportunity,
not only just idea market fit,

but product market fit that
people are willing to pay for.

Whatever service or solution that
you're providing, and that's where

Yeah, we growth is always a great
strategy for attracting investors.

Getting as much traction as you can
possibly out of the gate which means

building a great product and finding the
right market to deliver that product into.

And we really did accomplish that in
the first few years of the company.

achieve some significant
growth those few years.

And that made it much easier for us
to go and find and attract investors.

In looking for early stage investment
partners, one of the most important

things was strategic alignment
of capabilities with our goals.

For instance, when you're trying to
build a nationwide digital neobank and

channel specifically for physicians,
dentists, and veterinarians.

It's incredibly important to have an
investment partner that has experience in

the financial space, the banking space,
the healthcare space, or preferably all of

We're very lucky that we have strong
customer base with good revenue and

capital efficient business, which
means we don't often have to raise

So we haven't gone through the
process of attracting early

But what I'm finding is based on
as we're getting deeper into the

market and the problem space we
operate in, how much we can help.

We are now using our existing
investor base and the network in

general to find the right type of
investors who've been in the market,

So that's, so we're, basically
activating the network on that front.

Fintech Founders

Expert Insight

Useful insights from fintech entrepreneurs and founders on funding and the best strategies.

In our latest FinTech Founders mini series we explore various aspects of funding and the best strategies to use.

This brief, to-the-point video features useful insights from fintech entrepreneurs and founders including Kathleen Craig, Plinqit; Chase Neinken, Chimney; Michael Duncan, Bankjoy, Ned Palmer, Panacea Financial; and Karan Jain, NayaOne.

