#321
Let's Stay Friends...
3 years and 3 Prime Ministers later - the UK has left the European Union. Brexit supporters were chuffed to bits celebrating last night - while others didn’t bother to participate in the festivities dubbed ‘Let’s Stay Friends’ - with pubs promoting reduced prices of German beer, French vodka, and Irish whiskey.
Fintech startups in the UK are arguing “Brexit Shmexit!” as the UK pulled in more fintech funding ($4.9b) in 2019 than China and India, and double the rest of the EU. Moreover, more than 1,000 European financial firms have plans to open their first office in post-Brexit Britain.
But it may be the humble Dover sole that ends up causing some unpleasantness in the EU - UK trade negotiations. The EU threatens to restrict the City’s market access in Europe if fishing quotas for herring, mackerel, and sole can’t get ironed out.
So, in the ups and downs that will define the next 12 months negotiations, the best advice for everyone in Europe is perhaps Kipling’s mantra, which Boris took to heart as Foreign Secretary, “treat triumph and disaster the same” and have a cup of tea!
Portfolio News
Colombia's Minka aims to disrupt infrastructure for fintech startups with blockchain - Leveraging its partnership with ACH Colombia, portfolio company Minka's blockchain-based cloud platform represents a major milestone in disrupting finance within the LatAm region. Read more
Extend’s Andrew Jamison: "We see ourselves as an ‘Intel Inside’ for B2B payments" - Tearsheet sat down with CEO of portfolio company Extend to discuss his past experience at Amex and the future of B2B payments with his company's unique product. Read more
Embroker: 10 best U.S. cities for startup costs - Washington D.C. is the most expensive city to launch a company in the US, with a yearly cost of $145k, while Tucson, Arizona was the least expensive, at a cost of $63k, according to a report from portfolio company Embroker. Read more
Let's Stay Friends
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Industry News
U.S. regulators propose simpler restrictions around bank fund investments - U.S. banks would be able to take large ownership stakes in venture capital funds under proposed rules unveiled by the Federal Reserve. Read more
Institutional crypto lender Genesis Capital sees continued surge during Q4 2019 - In another record-breaking quarter, the cryptocurrency lender issued over $1bn worth of loans and saw high international demand. Read more
Despite lackluster fundraising round, STO platform tZERO is moving ahead with its broker-dealer plan - tZERO, owned by online retailer Overstock, currently only has two tokens listed on its exchange and one broker-dealer - but believes it has the right leadership team in place and tech build to support its full-stack platform plan. Read more
Ripple’s IPO could come within 12 months - Brad Garlinghouse, Ripple CEO, expects crypto/blockchain IPOs to over the next year and hinted Ripple would be early in that pack (though not the first). Ripple raised a $200m Series C last month valuing the company at $10b. Read more
SoftBank wants its on-demand portfolio to stop losing so much money - Following the FT reporting that Uber and DoorDash discussed merging last year, it seems like the Vision Fund will encounter several scenarios where their portfolio companies will be direct competitors. Read more
How the mighty Goldman has fallen - A dollar invested in Goldman in 2010 would be worth just $1.60 today. A dollar wagered on the s&p 500 would be worth $3.60, and on JPMorgan Chase, $4.10. If Goldman’s reinvention fails it may ultimately have to do a deal. Read more
When Ana ditched Andrea - She runs mega-bank Santander; he’s a top deal-maker. She offered to make him the best-paid CEO of any bank in euroland. It didn’t happen, and the $123 million lawsuits that followed shows even banking royalty can’t always get their way. Reuters special report! Read more
Elon Musk just dropped an EDM track on SoundCloud - Following Tesla posting positive earnings, the Starling project coming together, and SpaceX nailing its commercial crew flight test Musk thought it was the right time to drop the mixtape with the lyrics "Don't doubt your vibe / because it's true." Read more
Marcus steps back from UK stocks and shares Isa - Goldman had been working with Nutmeg, a UK based online wealth manager, to launch a product ahead of the UK's “Isa season” this spring. The move would have brought Goldman into the UK retail investment market for the first time. Read more
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