The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Why The Unbundling of Fintech Will Continue, How VCs Are Propping Up The Neo-Banking Industry & Why We Need A New Framework To Value Businesses Today with Clay Wilkes, Founder & CEO @ Galileo
Jul 31, 2020
Clay Wilkes, Founder and CEO of Galileo, shares his insights on the fintech revolution, detailing his journey in building a leading API provider. He discusses the ongoing unbundling in the industry, pondering whether every company will turn into a payments company. Clay reflects on the advantages of growing a profitable business without early VC funding and critiques the current venture capital discovery mechanisms. He also touches on the strategic implications of Galileo's acquisition by SoFi and the balance of profitability and growth in today’s fintech landscape.
30:10
Verticalization of NeoBanking
- Verticalization is one aspect of the increasing integration of financial services.
- Wilkes believes all companies will eventually incorporate financial services.
Fintech's Infancy and Future
- Wilkes predicts consolidation in FinTech and the emergence of new players in developing markets.
- He believes FinTech is in its infancy, with a "FinTech 2.0" and big tech integration on the horizon.
Neobanks vs Traditional Banks
- Wilkes believes current neobanks will be significant players but not necessarily replace traditional banks.
- Neobanks need sustainable business models and must expand their services.
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Intro
00:00 • 3min
Navigating the Fintech Frontier
03:18 • 8min
The Implications of VC Influence on Neobanking and the Strategic Merger with SoFi
11:41 • 3min
Navigating Fintech: Profitability and Growth Strategies
14:49 • 10min
Navigating Entrepreneurship: Tenacity vs. Adaptability
25:04 • 2min
Personal Growth and Future Ambitions in Fintech
26:42 • 3min
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Clay Wilkes is the Founder & CEO @ Galileo, the API standard for card issuing and digital banking, powering many of the leading global FinTech companies including Chime, TransferWise and Monzo to name a few. Prior to their reported $1.2Bn acquisition by SoFi, Clay raised just $86M in funding with Galileo from the likes of Accel and Ryan Smith @ Qualtrics, having run the company as a profitable company before that for over 15 years. Clay also has a keen interest in philanthropy having created the Galileo foundation with his wife in 2005.
In Today's Episode You Will Learn:
1.) How Clay made his way into the world of tech and startups more than 20 years ago and how he came to build the foundations for many fintechs today with Galileo?
2.) When looking at the current financial ecosystem does Clay believe we are in a phase of bundling or unbundling? Does Clay believe we will see the verticalisation of banking? Will every company become a payments company? Does Clay believe we will see consolidation in the space?
3.) What does Clay believe were the benefits of going 15 years withour raising VC money, building a profitable business? What are the trade offs? What could he have done if he had raised? With hindsight, does Clay wish he had raised earlier? Why was then the right time to raise?
4.) Why does Clay believe the discovery mechanism for VCs finding startups is broken? How did Clay select the venture firm he chose to work with, Accel? What advice does Clay give to board members when it comes to being the best board member to their founders?
5.) Why did Clay believe that selling to SoFi was the right decision? What are the benefits of the merger? How does Clay think about the competitive element that many of Galileo's current clients are competitors with SoFi? How do they remedy and solve for that today?
Items Mentioned In Today's Show:
Clay's Fave Book: Why Nations Fail: The Origins of Power, Prosperity and Poverty
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