FinTech: The Journey and the Hurdles

Peter HatzOperations DirectorVeridate Financial

June 2016

2

The views expressed in the following material are the author’s and do not

necessarily represent the views of the Global Association of Risk

Professionals (GARP), its Membership or its Management.

FinTech everyone is included and participates

in which we operate

genuinely try to improve the market

and it is your contribution that shapes the outcome

there is a better way

two schoolsof thought

embrace technology

seek opportunities

deliver proventechnology

two serious challenges

investor KYC single integrated system

Startupevery business in existence started at one time or another

Capital Raising Early stage investing is hard, really hard.

Thinking you can find the next Uber or Snapchat is a mirage with odds of about

1/1000.

Twitter, and Facebook, and Uber. They all seemed like pretty stupid ideas.

Twitter, and Facebook, and Uber. They all seemed like pretty stupid ideas.

Until they weren’t.

It has become quite fashionable to be an angel investor

The “wannabe” investors who don’t have the means, or former entrepreneurs who don’t want to leave the arena. They always have one more issues to investigate or another set of questions, but never bring the checkbook.

the rise ofthe PretAngel

The “wannabe” investors who don’t have the means, or former entrepreneurs who don’t want to leave the arena. They always have one more issues to investigate or another set of questions, but never bring the checkbook.

the rise ofthe PretAngel

They take advantage of an entrepreneurs need for funding

the rise ofthe PretAngel

Reversediligence them

Your valuation is too high

How do you value Uber or Snapchat when you have no access to the audited financials

and absolutely no way to value the Next Uber or Snapchat venture in the garage phase

You do not have a clear exit

We are in the technology business and the beauty is that it is changing all the time.

Are you getting paid

No we should die trying to succeed and once I am dead you should

see what use I am to you.

The most importantfactor

for a Startup

Your teamis everything

automating private wealth administration

C r e a t i n g a c u l t u r e o f r i s k a w a r e n e s s ®

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About GARP | The Global Association of Risk Professionals (GARP) is a not-for-profit global membership organization dedicated to preparing professionals and organizations to make better informed risk decisions. Membership represents over 150,000 risk management practitioners and researchers from banks, investment management firms, government agencies, academic institutions, and corporations from more than 195 countries and territories. GARP administers the Financial Risk Manager (FRM®) and the Energy Risk Professional (ERP®) Exams; certifications recognized by risk professionals worldwide. GARP also helps advance the role of risk management via comprehensive professional education and training for professionals of all levels. www.garp.org.

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