Link: There is no “technology industry”

‘But today, the major players in what’s called the “tech industry” are enormous conglomerates that regularly encompass everything from semiconductor factories to high-end retail stores to Hollywood-style production studios. The upstarts of the business can work on anything from cleaning your laundry to creating drones. There’s no way to put all these different kinds of products and services into any one coherent bucket now that they encompass the entire world of business.’
Original source: There is no “technology industry”

Link: Docker founder Solomon Hykes leaving company, cites need for enterprise-focused CTO

“To take advantage of this opportunity, we need a CTO by Steve’s side with decades of experience shipping and supporting software for the largest corporations in the world. So I now have a new role: to help find that ideal CTO, provide the occasional bit of advice, and get out of the team’s way as they continue to build a juggernaut of a business.”
Original source: Docker founder Solomon Hykes leaving company, cites need for enterprise-focused CTO

Link: Fintech Has Grown Up

“Fintech has lost its direct-to-consumer ambition. Previous editions of Finovate have seen presentations by now established brands like Fidor Bank, eToro, Kabbage, rPlan, and Scalable Capital. Most of these startups have since shifted their business model from just direct to customers – consumers or businesses – to some form of B2B2C, working with incumbents as their distribution partners. That’s because despite all the claims about incumbents neglecting their customers’ needs, customer acquisition in financial services remains hard and expensive.”
Original source: Fintech Has Grown Up

Link: Fintech Has Grown Up

“Fintech has lost its direct-to-consumer ambition. Previous editions of Finovate have seen presentations by now established brands like Fidor Bank, eToro, Kabbage, rPlan, and Scalable Capital. Most of these startups have since shifted their business model from just direct to customers – consumers or businesses – to some form of B2B2C, working with incumbents as their distribution partners. That’s because despite all the claims about incumbents neglecting their customers’ needs, customer acquisition in financial services remains hard and expensive.”
Original source: Fintech Has Grown Up

Link: The Majority of Top Performing IPOs Were Never Unicorns | Jeff Richards | Pulse | LinkedIn

“Given the data we shared at the beginning of this post – 75% of the top 20 performing IPOs from the last four years went out at valuations below $1 billion – one would think we’d see this trend picking up steam. Recent sub-$1 billion IPOs by companies like SendGrid, Blackline and TradeDesk have all done very well. Our bet, however, is small cap IPOs will continue to be few and far between until a) the late stage private capital market gets more difficult, b) investment banks decide to focus on smaller deals, or c) the regulatory requirements of public companies are reduced. None of these is likely to happen soon.”

The gate keepers want the biggest pound of flesh possible. It’s how percentages work.
Original source: The Majority of Top Performing IPOs Were Never Unicorns | Jeff Richards | Pulse | LinkedIn

Five banking startups: back office optimatition and retail analytics

You can get a sense of the types of projects and applications of cloud native banks are interested in by looking over these Capital One startup contest winners:

– Credit Kudos – an alternative credit scoring platform that measures credit worthiness using real-time transaction data captured automatically from the borrower, providing a transparent and up-to-date view of a person’s credit profile. Freddy Kelly, CEO of Credit Kudos, said: “Our aim is to change the way credit scoring works, from an opaque black box system to something that allows individuals to get the most value from their data. As a pioneer in lending, we believe Capital One is the perfect partner for us to bring Credit Kudos to the market.”
– Multisense – a secure end-to-end solution put together as a user-friendly mobile platform which includes face, voice and fingerprint recognition which can be combined with GPS and NFC. Aviram Siboni, CEO of Multisense, said: “Being part of this accelerator programme is an amazing opportunity. Not only to get the chance to join forces with Capital One, but also to bring our biometrics authentication platform a step closer to the UK market – it’s such an incredible time for us to innovate alongside Capital One.”
– Pariti – a mobile banking app enabling users to take control of their money, reduce interest payments and start saving. The app connects to separate bank accounts and credit cards and automatically identifies income and bills so users know what they can safely spend each week. Matthew Ford, CEO and Founder of Pariti, said “It is extremely exciting to have been selected to go forward in this process and I look forward to working very closely with Capital One to further develop Pariti and enhance the future of banking.”
– Warwick Analytics – a provider of automated predictive analytics that can remove the 80% of time data scientists need to organise and process data prior to analysis. Dan Somers, CEO of Warwick Analytics, said: “We’re delighted to be part of Growth Labs and working with Capital One – one of the most innovative financial services companies. We are looking forward to collaborating to develop disruptive solutions for them and for this sector.”
– WealRo – a real-time assistant for savings and investing that aims to use AI technology and machine learning to find areas of a user’s budget where savings can be made. Owen Haggith-Khonje, WealRo’s founder, said: “Growth Labs presents a fantastic opportunity for WealRo to receive world-class mentoring, with the hope of building a long term relationship with Capital One that positively shapes the financial landscape.”

There’s a mixture of optimizing existing services (better authenticating, credit scoring, improving data analysis), but also analytics-drive services that encourage customers to keep more money in the bank (savings).

Source: Capital One announces finalists for startup accelerator

Link: Billionaire CEO and investor Marc Benioff says unicorn startups manipulated private markets and he’s done investing in them

“The unicorn thing, I’ve been saying for a while now, is not great,” Benioff told Stephanie Ruhle on Bloomberg GO earlier this week. “The reason why it’s not great is not necessarily that these companies are not worth this much money or whatever — we don’t actually know because they’ve manipulated the private markets to achieve these valuations.”

“There is no reason why these companies who claim to be worth billions of dollars and making billions of dollars to stay private,” he continued. “They need to get out on the market, run their companies with the right level of governance, and let the market rationalize these valuations.”

“Being a public company is good. It forces us to make sure we keep the cadence…we have to keep our eye on the ball,” Benioff said. “The unicorn mania that’s going on, that’s dangerous for our Silicon Valley economy.”

Hey, he’s got all sorts of biases where this view favors him and Salesforce…but that doesn’t mean it’s wrong-think.

Source: Billionaire CEO and investor Marc Benioff says unicorn startups manipulated private markets and he’s done investing in them