Fintech Leaders Matt Harris, Partner at Bain Capital Ventures – Lessons From Three Decades of Fintech Investing, What Defines Great Founders, & Embedded Finance’s Massive Potential
Feb 20, 2024
Matt Harris, Partner at Bain Capital Ventures and long-time fintech investor, shares reflections from decades backing fintech infrastructure and embedded finance. He discusses investing through cycles, why he favors B2B infrastructure over consumer fintech, the promise of embedded finance, and what makes founders and boards succeed. Short, insightful, and full of hard-won perspective.
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Prefer B2B Unless CAC Is Proven
- Avoid early-stage consumer bets unless you have clear customer-acquisition edge or later-stage proof.
- Matt Harris prefers B2B fintech where product, recurring revenue, and distribution are more predictable.
The Hidden Costs Of Credit Businesses
- Credit businesses carry liquidity, credit, and regulatory risks that often beat venture returns.
- Those risks make credit hard for VCs unless the model meaningfully reduces liquidity or credit exposure.
Embedded Finance Is Software Monetized
- Embedded finance is the convergence of sticky software and financial services monetization.
- Bain Capital Ventures packaged research to give founders a framework to act on that trend.