VC Panel: Raising Capital in Fintech and 2013 Forecast

On Wednesday, January 9th, OLC attended the NY Fintech Startups Meetup, where several venture capital firms discussed capital raising strategies for future entrepreneurs and their 2013 predictions.

Mike Cichowski from Edison Ventures explained how his company is interested around two themes. First being capital markets and markets and their paper trails, meaning that everything should be done electronically. He stressed how his company understood the amount of paperwork when dealing with bills, mortgages and thus opportunities for companies that can relieve that stress.

The topic switched to tips for entrepreneurs and for Cichowski, he stated that they sought out entrepreneurs that were fully prepared and invested in one’s company.

Edison Ventures looks for businesses with a strong business plan proposal and be fully aware of their competition, if any.

Huck O’Connor from Multiplier Capital talked about how his company looks for companies that produces a great quality of their idea—a clear point from point A to point B and the size of the market.

O’Connor also mentioned how the company should be able to access the markets when they can and not when they have to. Meaning, one should have a backup and not a forced path. The current types of businesses Multiplier Capital looks for are peer-to-peer lending, where it is a day-to-day lending system and free markets.

Jordan Bettman from Bain Capital Ventures elaborated how on his company looks to invest in companies that would result in high revenue. He mentioned how his company seeks out investments, which will help them profit up to four times the amount invested.

The advice he gave for entrepreneurs is to limit attacking one’s competition and to be aware of any questions thrown at, specifically stating, "Be aware of what you know and what you don’t know." Bettman also mentioned how one should realize the risks of one’s company. "Know the case and situation of their proposal very well and despite low revenues in the beginning, it should eventually excel," he said.

Josh Abramowitz of Deep Creek Capital explained how future entrepreneurs should be extremely crisp and clear about one’s business plan proposals to keep practicing and make sure one is able to get the message across. He also mentioned how his company is looking for companies that are like axial markets and private markets as well. 

Last month's Meetup: