25 January 2023 |

S4 Ep4: Meet The Unconventional Fintech Founder Changing The VC World

By Nicole Casperson

From struggling to read to becoming a highly successful VC and Founder, this is the unique story of Drew Glover.

Drew is Co-Founder of Fiat Ventures and Fiat Growth, helping fintech startups scale through mentorship and investment. He grew up overcoming learning difficulties, thanks to his own determination and an encouraging mom, and is now a successful investor and mentor.

Nicole and Drew get into how his success as an athlete helped him become the best communicator, why admitting your weaknesses is the key to self-growth, and why he believes fintech investment will unlock opportunities for smaller companies who deserve success.

And if you love listening to Humans of Fintech, please leave me a 5-star review on Rate My Podcast: https://ratethispodcast.com/humansoffintech

Thank you so much!

Follow Drew:

LinkedIn:linkedin.com/in/drewbailerglover

Twitter: https://twitter.com/DrewBailer

You can keep up-to-date with everything Humans of Fintech at https://workweek.com/brand/wtfintech/

And if you’ve enjoyed Humans of Fintech why not try: Chicks of FinTwit, Tech Unlocked, Breaking Banks or Fintech Insider

Timestamps:

00:00 Intro

02:22 Outside The Traditional School System

05:52 Making It Out Alive

06:12 Fintech Is Meant To Be Unconventional

10:45 The Aha Moment

14:15 Noticing Your Super Powers

16:30 When Your Mom Knows Too Much

20:50 Change Needs to Happen

21:17 A Different Vantage Point

26:33 Unique From Day One

Unlocking the Secrets of Venture Capitalism: A Comprehensive Guide

Venture capitalism is a highly lucrative yet complex field of finance. If you’re an entrepreneur looking to raise capital for your startup, you need to have a thorough understanding of venture capitalism and the various aspects associated with it. This guide will provide you with a comprehensive overview of venture capitalism and equip you with the knowledge necessary to make informed decisions when it comes to raising capital.

Introduction to Venture Capitalism

Venture capitalism is the practice of investing in newly established businesses with the expectation of a higher return on investment. It is a form of private equity and typically involves high-risk investments in startups and other early-stage businesses. Venture capitalists provide financial capital, managerial expertise, and access to networks in exchange for a stake in the company.

Venture capitalists are typically wealthy individuals, family offices, or institutional investors with a high risk tolerance and a long-term outlook. Venture capital firms are specialized firms that invest in startups and other early-stage companies with the aim of generating a return on their investments.

Venture capitalism is an attractive option for many entrepreneurs because it provides access to capital, resources, and expertise that would otherwise be difficult to obtain. However, venture capitalists typically demand a certain level of control over the company in exchange for their investments, which can be a difficult pill to swallow for some entrepreneurs.

Investment Strategies

Venture capitalists employ various investment strategies when it comes to investing in startups and other early-stage companies. These strategies typically involve identifying promising businesses, conducting due diligence, and deciding on the right amount of capital to invest.

One of the most popular strategies employed by venture capitalists is “spray and pray”, which involves making a large number of small investments in different startups. This strategy reduces the risk of a single investment failing and allows venture capitalists to diversify their portfolios.

Another popular strategy is “bottom fishing”, which involves investing in late-stage startups that have already gone through several rounds of financing. These startups are typically more mature and have a better chance of succeeding.

Finally, venture capitalists may employ a “top-down” approach, which involves investing in the most promising startups. This strategy involves a greater risk, as the venture capitalist is betting on the success of a single startup.

Types of Venture Capitalists

There are several types of venture capitalists, each with their own strategies and preferences. Angel investors are wealthy individuals who invest their own money in startups.

These investors typically prefer to invest in early-stage companies and have a high risk tolerance.

Venture capital firms are specialized firms that invest in startups and other early-stage companies. These firms typically employ a variety of strategies and may have different preferences when it comes to investment types.

Family offices are private investment firms that invest the wealth of wealthy families. These firms typically invest in more mature companies and have a lower risk tolerance.

Finally, institutional investors are large companies, pension funds, and other organizations that invest in startups and other early-stage companies. These investors often invest in more mature companies and typically have a lower risk tolerance.

Managing Risk

Venture capitalism is a high-risk investment strategy, and venture capitalists need to be aware of the associated risks. These risks include market risk, operational risk, financing risk, and legal risk.

Market risk refers to the risk that the company’s products or services may not be successful in the market. Operational risk refers to the risk that the company’s operations may be inefficient or ineffective. Financing risk refers to the risk that the company may be unable to raise additional capital.

Finally, legal risk refers to the risk that the company may be exposed to legal liabilities.

To mitigate these risks, venture capitalists need to conduct thorough due diligence and invest only in companies that have a clear path to success.

Steps to Raising Venture Capital

Raising venture capital can be a complicated process, and entrepreneurs need to be aware of the various steps involved.

The first step is to develop a business plan that outlines the company’s objectives and strategies. This plan should include a detailed description of the company, its products or services, and its target market.

The second step is to identify potential investors and develop relationships with them. This involves researching potential investors and networking with them to build relationships.

The third step is to present the company to potential investors. This involves creating a pitch deck, which is a presentation that outlines the company’s objectives and strategies.

The fourth step is to negotiate the terms of the investment. This involves negotiating the valuation of the company and the terms of the investment.

The final step is to close the deal. This involves signing the necessary documents and transferring the funds.

Valuation of Start-ups

Valuing a startup can be a complicated process, and venture capitalists need to be aware of the various valuation methods. These methods include the cost approach, the market approach, and the income approach.

The cost approach involves valuing the company’s assets and liabilities. This approach is typically used for more mature companies that have a track record of profitability.

The market approach involves valuing the company based on the valuations of comparable companies. This approach is typically used for early-stage companies that don’t have a track record of profitability.

Finally, the income approach involves valuing the company based on its expected future cash flows. This approach is typically used for startups that have a product or service with a clear path to profitability.

Finding the Right Investment Partner

Finding the right investment partner is crucial for entrepreneurs looking to raise venture capital. It’s important to find an investor that shares your vision and has a similar risk tolerance.

The best way to find the right investment partner is to network with potential investors and build relationships. This involves researching potential investors and attending industry events. It’s also important to research the track record of the investor and evaluate their portfolio to determine if they’re a good fit.

Once you’ve identified potential investors, it’s important to present your company to them in a professional manner. This involves creating a pitch deck, which should include a detailed description of the company and its objectives.

Finally, it’s important to negotiate the terms of the investment. This involves negotiating the valuation of the company and the terms of the investment.

Conclusion

Venture capitalism is a highly lucrative yet complex field of finance. If you’re an entrepreneur looking to raise capital for your startup, you need to have a thorough understanding of venture capitalism and the various aspects associated with it. This guide has provided you with a comprehensive overview of venture capitalism and equipped you with the knowledge necessary to make informed decisions when it comes to raising capital.

It’s important to research potential investors, develop relationships with them, and present your company in a professional manner. It’s also important to understand the various investment strategies employed by venture capitalists, the different types of venture capitalists, and the steps involved in raising venture capital. Finally, it’s important to manage risk and understand the various methods used to value startups.

By following the tips outlined in this guide, you’ll be well-equipped to find the right investment partner and raise the capital necessary to launch your startup.