Transcript
Page 2: The FinTech Startup Ecosystem

“The FinTech Startup Ecosystem”By: John F. C. Cheong, Ph.D.

1. The Business of Startups2. The “Big Question”3. “Small” is the New “Big”4. Iterating to “Product-Market Fit”5. Disruption by a Thousand Arrows6. The FinTech Startup Space7. BlockTech and Recent Activities8. My Approach to BlockTech9. What Does a BlockTech Stack Look Like?10. Demographics Trumps Technology11. Vertical Networked Community12. A BlockTech-Centric Investment Thesis

Feedback and comments to: [email protected].

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Building A New Business: “The Business of Startups”

“I’m starting a startup that helps other startups start up.”

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The “Big Question” for Entrepreneurs and Investors:How Best to Launch and Accelerate New FinTech Ventures?

Huff! Puff!

“We can do it all by ourselves!”— Atlas

vs.

“Give me a place to stand, a lever long enough and a fulcrum, and I shall move the World.” — Archimedes

Now, isn’t this a much better way…?

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“Small” is the New “Big”: How StartupsCo-Evolve with Platforms and Ecosystems.

Suite Platform

Multi-Platform Bus“There is a new breed of “big” on whom the coming age of “small” is built: the platform players (like eBay, Etsy, Amazon, Apple, and Google) on whose platforms smaller businesses blossom.”

— Nicco Mele

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An Iterative “Build-Measure-Learn” Methodology:Ideas to Code to Data … Until “Product-Market Fit”.

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“Disruption by a Thousand Arrows”: FinTech Startups Unbundling Wells Fargo, Citi and Bank of America.

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Hundreds of Companies Across A Dozen Categories(Global Funding: $3B 2013, $12B 2014, …, $__B 2018):

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Making Sense of The FinTech Startup Space:How Capital Markets Make the World Go Round …and Around?

Payments & Remittances

Lending & Personal Finance

Asset/Wealth Mgmt & Trading

(Basic Income?)

Equity Financing& Capital Markets

Crowd Funding

Insurance& Payroll

Banking Infrastructure

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FinTech’s Wheel of Disruption:Six Clusters of Financial Services Innovation?

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Blockchain Activities of Financial Intermediaries & Banks

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Blockchain: A Fundamental Technology That Impacts Other Technologies (i.e., BlockTech Disrupting Tech!)

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Feedback and comments to: [email protected].

My Approach: “Industry Model Canvas” for Assessing BlockTechOpportunities in and around Value Creation and Value Capture.

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Keep It Super Simple: A Fully ConfigurableModular 4-Layer Stack for BlockTech?

Smart Contracts

Blockchain Mediation

Proof-of-X Algorithm

Network Topology

Business logic layer where smart contracts are coded using high level languages.

Distributed ledger layer where inconsistencies and conflicts are resolved.

Transaction verification layer where proofs are computed and communicated.

Underlying network layer that determines how the nodes are connected together.

Could this be BlockTech’s “signature stack”?

Identity

Keys

Storage

Messaging

Languages

Transaction Ledger

Consensus Method

Tokens

Mining

Nodes

P2P

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Let’s Not Forget: Demographics is What’s Driving Major Disruptive Changes in the World Today!

KP KA VP CR CS

C$ R$

CHKR

Business models are designed and executed in specific environments. So the external environment is like a “design space” for business models. And business models evolve to adapt to changing environments.

MACRO-ECONOMIC

FORCES

MARKET FORCES

INDUSTRY FORCES

KEY TRENDS

New Digital Technologies

Clobbered by Regulation Millennial Demographic Shift Underway

Changing Consumer/Enterprise Behaviors and Expectations

Suppliers & Value Chain Actors

Stakeholders

Incumbents’ Legacy IT Infrastructure

New Entrants’ Lower Startup Costs

Bitcoin & Blockchain Substitutes

Baby Boomers and Millennials

New Preferences for Banking

Confusing Choices

Lower Switching Costs

Less Attractive Revenue

Zero Interest Rate WorldRecovering from Great Recession Increasing Rates of Changes

The World Awash in Capital

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Thank You!

“FinTech”


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