Gabriel Braga

Square, Mercado Libre, Rappi, Zillow, and Stripe alumni have founded 1,511 startups over the last decade. That's a lot! And about 12% of these founders are building a fintech company. What is it about the DNA of these firms that they attract a lot of would-be founders? Some of the great fintech companies founded by ex-employees of this group include Pomelo, Ontop, Persona, Mundi, AgentSync, Divvy Homes, and Pacaso Square - 355 total startups, 32 in fintech Mercado Libre - 282 total startups, 37 in fintech Zillow - 294 total startups, 22 in fintech Rappi - 290 total startups, 28 in fintech Stripe - 290 total startups, 25 in fintech Read our full report ➡ https://bit.ly/GGMVFF Andrew Endicott Paula You David Erickson Kirstie Irmana Kristofer Jenk Josh Jagota Gilgamesh Ventures The Wharton School

111

2 Comments

Brex is one of my favorite fintechs. Ever wonder what their journey from $0 to over $300M in revenue within 7 years looked like? 2017-2018: The Birth of Brex • Henrique Dubugras and Pedro Franceschi, both 22-year-old Stanford dropouts, decided to flip the fintech world on its head by launching Brex, a corporate credit card tailored for startups. • With their co-CEO model (which has become popular), they doubled their management bandwidth. Internal & external duties? No problem when you have twice the number of CEOs to lead folks 2019-2020: Rapid growth • Brex quickly partnered with big names like DoorDash, Flexport, and Roblox. • In 2019, they secured $300 million in funding, catapulting their valuation to $2.6 billion. It’s amazing what you can achieve when you’re swimming in a pool of investor cash. 2021-2022: Diversification and challenges • Brex expanded its product suite to include expense management, bill pay, & travel booking services. If you’re going to burn through cash, you might as well make it convenient. • Despite their success, they faced some “minor” hiccups. Layoffs in 2022 were a delightful reminder that even fintech unicorns aren’t immune to cutting costs by cutting people. 2023: Strategic shifts • Transitioning to a single CEO model, Pedro took the helm while Henrique became chairman. Having two brains was slowing things down? • They continued to innovate, integrating AI into their platform. By the end of 2023, Brex hit over $300 million in revenue, proving that even with all the chaos, they were still making bank​. 2024: Path to profitability • With a goal of being cash-flow positive by 2025, Brex halved its cash burn by chopping 20% of its staff and focused on sustainable growth. Making money instead of burning it is always a sound strategy. • Serving 30K+ customers globally, Brex’s commitment to transparency & customer-centric solutions has kept them in the game. They’re not just participating – they’re rewriting the rules. Want to copy their homework? 1. Identify a significant pain point in an industry and create a solution that addresses it. Please don't start a business without doing this. 2. Utilize a strong co-founder dynamic to maximize efficiency & divide responsibilities effectively. Two heads are better than one, until they aren’t. 3. Secure early partnerships with influential companies to build credibility and a customer base. It’s always about who you know. 4. Listen to your customers. & Expand your product offerings to meet their evolving needs. 5. Maintain a strong focus on transparency & trust to build a loyal customer base. People surprisingly prefer not being lied to. 6. Strategically manage growth, and make tough decisions like layoffs when necessary to ensure long-term sustainability. 7. If you want to go public, be profitable. Did I miss anything?

86

2 Comments

Would a Nubank copy-paste work in Africa? Probably not (at least right now). "LATAM is similar to the US: credit-cards are understood, widespread. Credit cards as a product are supremely powerful. Users can seamlessly borrow and spend. It’s a gold mine for the issuer, and it’s (in part) what made Nubank so successful. A small survey estimated that 58% of Latin Americans have credit cards. In Nigeria, Africa’s most populous country, the figure stands at around 1.6%. Any African neobank play has to start with contextually-relevant products, like someone’s first proper bank account." Read the full Realistic Optimist piece by Hassan Bourgi, co-founder of Djamo here: https://lnkd.in/gSb4TNfB

17

1 Comment

VCs don't want you if you're not throwing tons of 💸💸💸 at outbound marketing... 😮 From Matheus Darós Pagani's experience, this is why taking Venture dollars was not an option 🙅‍♂️ As an offshore development shop (located in Brazil), he experienced first-hand how cold email was a money pit 😣 Too many of his ideal clients were resistant to accepting software development labor from an offshore team that they'd never met. What did he do? He focused his marketing on building relationships and taking an organic approach to growth. Was it slow-going? Yes. But it has proven more successful than when he was pursuing cold email campaigns. Is this unique to offshore dev agencies? Is this true for all dev shops? I'd love to hear your thoughts below! 👇 _____________________________ Are you a software development agency looking for a little guidance on your journey to growth? Subscribe to the Dev Launch podcast! We interview software dev agency owners as they share their startup journey and what they're learning in the process. This isn't some generic entrepreneurial podcast with "rah rah" advice - we're talking about specific industry challenges. Find us on YouTube and Spotify. We are changing things up in the format as we launch into Season 2, so stay tuned!

39

9 Comments

NU is not seen as a tech company it’s still seen by people as a bank and it’s that that is driving the growth. And this growth is because TRUST is flowing into the digital banking market. Trust is all that is needed for people to leave ‘traditional’ banks and go to new digital banks like Nubank, Wise, Revolut, TymeBank and others. Why? Because of UX. These new banks’ UX is still light years ahead of tranditional banks. UX isn’t just the UI of an app or a website it’s how you feel when you interact with them. There is such a big difference between the new and traditional banks the the only thing stopping a massive exodus (this is already starting) is trust. We should expect to see way more growth as more people switch. We are still at the beginning of ‘the early majority’.

26

4 Comments

When celebrities invest cash into startups they often get lower valuations in exchange for promotion. And I believe that is exactly what happened with Ronaldo’s latest investment in wearable technology company WHOOP. The Portuguese soccer icon just invested and became an official global ambassador for Whoop, the wearable technology company. “Whoop has had a transformative impact on my life both on and off the pitch,” Ronaldo said in a statement. “I wear Whoop while training, sleeping, and recovering. It’s been one of the most important tools helping me elevate my game and monitor my health.” The financial details of the investment have not been disclosed, but according to Whoop, the deal represents one of Ronaldo’s “most significant investments to date.” Although it could definitely be true that Ronaldo invested cash, I don’t believe he paid the full price for it (but this is just an assumption). Often when celebrities invest, they get discounted valuations or do a part equity deal in exchange for promoting the company. Ronaldo for example has 629 million followers on Instagram and is the most followed person on the platform. One post about a company and the website will probably blow up (which is exactly what Ronaldo did this morning btw announcing his partnership with Whoop). Besides getting a financial injection, most often the startups receiving the celebrity investment also gain a lot of social exposure, which they normally have to pay millions of dollars for. So it makes sense to do a part equity deal or offer a lower valuation. What do you think? 

51

11 Comments

The best way to understand if your company has PMF…

12

How to approach due diligence with emerging managers? Tips & tricks from Rodrigo Ferreira, Investment Director at Vinthera. 1/ Strategy. Define your unique USP. How do you stand out in front of founders? Think about it. Why should founders take your money? Are you a specialist or a generalist? If you are a specialist? What specific field are you picking? Why? What is the added value you add to founders? Will your presence in their cap table have a meaningful impact? 2/ Portfolio Construction. Something that is very often overlooked by GPs. Understand the different dynamics that play there and how much ownership has an impact. What about you? How do you approach due diligence and the performance of an emerging manager? Join the conversation in the comments section. 🔽 #venturecapital #startupfunding #angelinvesting #Europe

17

1 Comment

BJJ CORE PRINCIPLES APPLIED TO THE STARTUP JOURNEY 🥋 As I navigate the startup journey, I’ve been reflecting on core principles of Brazilian jiu-jitsu and how they apply to startups (and to life in general). The parallels are numerous! Just as in BJJ, the startup path is marked by BLOOD, SWEAT, AND TEARS -pushing through the hard times and constantly refining your approach. BJJ has provided lessons in strategy, patience, and perseverance, all of which are just as relevant in business as they are on the mat. 1. LEVERAGE: Doing More with Less In BJJ, leverage allows a smaller practitioner to overcome a larger opponent. In startups, it’s about maximizing limited resources. Whether it’s capital, personnel, or time, founders must make strategic decisions to gain an edge with what they have. ---------------- 2. CONNECTION AND SENSITIVITY: Building Relationships and Staying Attuned In BJJ, connection is about staying in sync with your opponent’s movements, while sensitivity helps you react to subtle shifts. In startups, this translates to building meaningful relationships - with customers, your team, or investors - and staying attuned to their needs. Sensitivity to feedback and market changes allows a startup to adjust and grow, and make complete pivots if warranted. --------------- 3. WEIGHT DISTRIBUTION: Balance and Control Proper weight distribution in BJJ enhances control. In startups, it’s about balancing focus across product development, marketing, and operations to keep the business steady during highs and lows. ---------------- 4. TECHNIQUE: Precision Over Power In BJJ, superior technique wins over brute strength. In startups, it’s about focusing on execution, ensuring strategies are well thought out and refined. It’s not about doing more, it’s about doing it RIGHT. --------------- 5. BEING COMFORTABLE IN UNCOMFORTABLE POSITIONS In BJJ, you learn to breathe and stay calm in hellish positions. Startups often face tough moments - financial constraints, rejections, or setbacks. The ability to remain calm and adapt during these times is crucial. --------------- 6. ADAPTABILITY In BJJ, no two matches are the same—you have to adapt to your opponent’s style and strategy. Similarly, startups operate in constantly shifting environments. The ability to adjust and embrace uncertainty is what keeps startups alive. -------------- 7. RESILIENCE AND PERSEVERANCE Both BJJ and startups demand resilience. Failure is part of the process in both, but those who learn from mistakes and keep pushing forward ultimately succeed. ------------- #Startup #Unicorn #JiuJitsu #BusinessStrategy #Innovation #AngelInvesting

6

3 Comments

Imagine speaking without saying a word! Sci-fi? Not Anymore 🧠🗣️ Rubén D. and I had the chance of interviewing Vasco Pedro, the CEO & Co-Founder of Unbabel, who demoed their mind-blowing product, Halo Halo is a revolutionary technology that combines hardware, software Gen AI and a non invasive neural interface to translate brain signals into words hence - "speaking without saying a word" 🤯 Early usage is transforming the lives of ALS patients who haven't been able to speak in years. Seeing it in action is absolutely jaw-dropping 📽️ You've got to see the demo in the interview below 👇 AI For Good 🤖💖 - It's here ✅

91

42 Comments

A few months ago, I accidentally misgendered a VC in my email outreach 😬 I was trying to say "nice to meet you" in Portuguese and ChatGPT translated it to "prazer em conhecê-lo." It assumed I was communicating with a man and my Portuguese wasn't good enough to spot the gender agreement issue. Fortunately the VC gave me grace and still took a meeting with me, but I'll never forget the panic that hit me when my wife pointed out the mistake - the email was sent and I couldn't take it back. We're actively investing in techniques to make Verbalista more inclusive by prioritizing gender-agnostic phrasing when possible. For example, a perfectly acceptable gender-neutral alternative in this scenario is "prazer em te conhecer." In high stakes professional environments, words matter and a general translator will leave you prone to these kinds of mistakes. At Verbalista, we're obsessing over these details so our customers can be confident deploying it to their teams.

90

2 Comments

Lenny Rachitsky interviewed Jag Duggal, CPO of Nubank, and the entire interview is packed with great insights for fintech startups. One thing that stuck out to me was his commitment to “being fundamentally different, not incrementally better.” Today, the fintech ecosystem is crowed with lots of companies making marginal improvements to existing products by revamping the user experience or offering the product through new distribution channels. These can be good for consumers, but in order to grow into a multi-billion dollar company, it is likely not enough. Fintechs must focus on reinventing new categories to offer a different experience all together. Some companies that I think do this very well: 💸 Wingspan - Wingspan revolutionizes freelancer management by offering an all-in-one platform that handles everything from payments to compliance, making life easier for both freelancers and the companies that hire them. 🎱 Triumph - Triumph redefines digital gaming by integrating real-money competitions into everyday games, creating an entirely new category in the gaming-fintech space. 📈 Yieldstreet - Yieldstreet democratizes access to alternative investments, allowing everyday investors to participate in asset classes traditionally reserved for the wealthy. 💰 Tippy - Tippy transforms the tipping experience for service professionals by providing a digital tipping platform that maximizes earnings and simplifies transactions. 👷‍♂️ Trayd: Construction Payroll - Trayd sets itself apart by offering a tailored payroll solution that consolidates subcontractor, employee, and time data into one platform, allowing businesses to easily customize payroll by job site and project, providing real-time insights with just a few clicks.

37

2 Comments

I would've rejected Nubank's Seed Round. Here's how I would've reviewed it. This is an internal exercise I did when I started at Latitud, reviewing the seed deck Nubank used to raise their first round. 8 times out of 10, I would've rejected them. It's so easy to dismiss. Colombian founder with no leadership experience challenging the most profitable banks in the world in a tough market like Brazil in 2013? REJECT. For aspiring VC analysts or entrepreneurs working on their story, here's a window into how a VC could review your materials. One of the capital sins of Venture Capital is to fall prey to thinking how things could go wrong instead of imagining or carefully distilling how things could go right. Because of the volume of deals getting assessed, the job-description could be thought of as "reject 80% of deals as fast as possible to unlock time for the 20% that have potential". And you... would you have had invested in this?

380

33 Comments

"Running the Gauntlet of Global Trade" Elizabeth stood in her London office, staring at the contract before her. It was the kind of deal her company had been chasing for years—a significant contract with a fast-growing telecommunications giant in Brazil. But excitement quickly turned to anxiety when the Brazilian firm demanded a guarantee before transferring funds. The clock was ticking, and Elizabeth knew this deal could evaporate as quickly as it had materialized without the proper financial assurances. International trade isn't for the faint of heart. It's a gauntlet filled with currency fluctuations, regulatory minefields, and the complexities of working across time zones. But Elizabeth had an ace up her sleeve: HSBC. She had heard about HSBC's global footprint, a vast network that spans 64 countries, supporting businesses like hers in navigating the treacherous waters of international trade. With one call, Elizabeth was connected to an HSBC expert who laid out the perfect solution: a Standby Letter of Credit. This wasn't just any financial instrument but a trust builder, a bridge between her company in the UK and their new partners in Brazil. Backed by HSBC's global presence, the Standby Letter of Credit gave the Brazilian firm the confidence it needed to proceed. It was a lifeline in a moment of uncertainty. By the end of the day, the deal was secure, and Elizabeth's company was on the brink of entering a new market that had once seemed out of reach. It was all made possible by choosing a partner who understood that trust is everything in global trade. This isn't just about one company's success. It's about the power of a global network that can turn challenges into opportunities. HSBC doesn't just operate in 64 countries; it brings those countries closer together, ensuring your business can move forward confidently, no matter where the trade winds blow. So, when facing the complexities of international trade, ask yourself: Do you have the right partner to help you run the gauntlet? For Elizabeth, the answer was HSBC. To explore how HSBC's Standby Letters of Credit can transform your global trade strategies, delve into Standby Letters of Credit: Turning Paper into Profits. Find out more here: https://lnkd.in/gZsbuptD

6

This fintech company disrupted the entire industry in 6 years. Its Brex. They turned a small startup into a $12.3B giant. How? Here’s the story: Henrique Dubugras and his co-founder, Pedro Franceschi, dropped out of Stanford to start Brex in 2017. They wanted to solve a real pain point they experienced firsthand, "startups’ difficulty in securing corporate credit cards". Traditional banks failed to serve startups with no credit history, so they thought of building a financial services platform that addressed these challenges. Built from scratch, no relying on third-party processors. Brex created a solution for startups: No personal guarantees, fast signups, and higher limits. Now it's $12.3B company. And here's how they did it in just 6 years: 1. Targeted User Acquisition Cold emails, billboards, and champagne, their growth strategy was unorthodox but effective. They built a pipeline by marketing where their users hung out, even on LinkedIn.     2. Nailing Retention Early Brex understood retention was critical. They used churn data to improve customer service and even developed white-glove support to keep customers happy. 3. Iterating for Scale From a simple corporate card, Brex grew into a financial platform. They created multiple revenue streams — expense management, bill pay, and even venture debt.     4. Creating a Moat The founders kept adding value with features like a cash management account and travel integration. Customers were more likely to stay, leading to strong expansion revenue.     5. Non-traditional marketing They experimented with unique tactics, driving demo bookings through creative campaigns — this set them apart from competitors.     When faced with growing pains, Brex doubled down on venture-backed startups, offloading SMBs to maintain their premium positioning. Brex’s journey proves that success comes from understanding your market’s pain points and solving them better than anyone else. What can you take from this? Focus on retention, find creative marketing channels, and don’t be afraid to pivot. #startup #casestudy

108

14 Comments

Nubank is larger than Coinbase, Robinhood, Affirm, and SoFi combined, has more customers than Bank of America (while only operating in three countries in Latin America), and 80% to 90% of its growth comes through word of mouth because of the way they make customers fanatical about their product. Jag Duggal is chief product officer at Nubank, and in our conversation, we dig into: 🔸 How Nubank creates fanatical users 🔸 Measuring love through the Sean Ellis score 🔸 Tactics for driving word-of-mouth growth 🔸 The role of category design in creating successful products 🔸 Why companies should strive to be “fundamentally different,” not “incrementally better” 🔸 Much more Listen now 👇 - YouTube: https://lnkd.in/gFsQZCSU - Spotify: https://lnkd.in/gyj3Tvbk - Apple: https://lnkd.in/gx2wmjzt Some key takeaways: 1. The “Sean Ellis score” is a key element of how Nubank measures product-market fit and makes decisions about investing in new products. The score is based on asking customers, “How disappointed would you be if this product went away?” The answer options are: a. Very disappointed b. Somewhat disappointed c. Not disappointed d. I no longer use this product 2. A few of your strongest customers can teach you more than many of your weaker ones. Your strongest customers are generally your most engaged users, deriving the most value from your product. If you use the Sean Ellis question, your strongest customers will be those with the highest scores. Try to learn: what characteristics make them a better fit for your product? What can they teach you about the value of your product? 3. The best user research technique is often to just pick up the phone and call 10 customers. You don’t need a research plan, a research lead, someone to summarize results, etc. Those things just add distance between you and the customer and overhead that slows research down. If you have a direct line to the customer instead, you’ll often find that it only takes five conversations before you gain strong, reliable insights. 4. Your strategy doesn’t have to be “right,” but it does have to be clear. A clear strategy allows you to identify when things are off course, because it defines “what was supposed to be happening.” Aspirations or vague statements like “to re-invent banking” are not clear strategies. Clear strategies are detailed plans centered on specific problems, solutions, customers, and strengths. 5. Jag lives and breathes the motto “We’re in the business of being fundamentally different, not incrementally better.” In competitive markets, merely improving incrementally on existing solutions isn’t enough. Strive to be fundamentally different by reinventing or creating new categories. This approach not only sets you apart from competitors but can also redefine the industry standards.

2,445

106 Comments

Building a product with the client, not for the client, is a game-changer —especially in today's competitive market. 🤝 I learned this lesson back in 2017 with Ricardo Geromel 杰罗梅尔 on my first time visiting Silicon Valley with StartSe. By involving clients in the development process, we ensure their needs and preferences are at the core of what we create. Nothing is more frustrating for a founder than creating something no one is interested in! This collaborative approach leads to solutions that truly resonate and add value. To ensure you build something that takes into consideration the customer's needs, you can apply strategy and an effective customer discovery process: ➡️ Conduct In-Depth Interviews: Engage directly with your clients to understand their pain points and aspirations. Open-ended questions can reveal invaluable insights. ➡️ Develop Empathy Maps: Visualize your clients’ experiences, thoughts, and emotions. This helps in understanding their motivations and challenges more deeply. ➡️ Iterate with Prototypes: Use prototypes to gather feedback early and often. This iterative approach ensures you're on the right track and can make adjustments before full-scale development. ➡️ Leverage Surveys and Analytics: Use quantitative data to complement qualitative insights. Surveys and analytics can help identify trends and validate assumptions. ➡️ Stay Engaged: Maintain ongoing communication with your clients (and potential clients) even after the product launch. Their continuous feedback will help you refine and improve your offerings. Remember, successful products are born from partnership and co-creation, not just service delivery. #ProductDevelopment #CustomerCentric #CustomerDiscovery #UserResearch

9

1 Comment

Everything you wanted to know about US pre-seed startups in 17 charts. Great summary and data from Peter Walker and Carta team. "Since 2020, US companies on Carta have raised on 𝟭𝟬𝟭,𝟴𝟲𝟱 individual SAFEs and convertible notes before any priced funding. Perhaps the largest data set for pre-seed investing on the planet. To the data! 𝗣𝗿𝗲-𝗽𝗿𝗶𝗰𝗲𝗱 𝗿𝗼𝘂𝗻𝗱 𝗳𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗶𝗻𝗴 • Funding on pre-priced rounds (including pre-seed and "seed on SAFEs") was relatively healthy in Q1, as estimated final volume will top $1 billion for the 10th straight quarter. 𝗦𝗔𝗙𝗘𝘀 𝘃𝘀 𝗡𝗼𝘁𝗲𝘀 • The competition for pre-seed has been won by SAFEs, which comprise 85% of capital invested into nascent startups. 𝗚𝗲𝗼𝗴𝗿𝗮𝗽𝗵𝗶𝗰 𝗦𝗽𝗹𝗶𝘁 • As usual, California leads in pre-seed investment at 38.4% over the past 12 months. Good showings from Texas, Florida, Colorado, New Jersey, and North Carolina. 𝗣𝗿𝗶𝗰𝗲𝗱 𝗼𝗿 𝗦𝗔𝗙𝗘 𝗿𝗼𝘂𝗻𝗱? • SAFEs dominate up to rounds worth ~$2M. Then there is a mixed picture until over $3M, at which point priced equity takes a solid lead. 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗖𝗮𝗽𝘀 • The median val cap for a $500K raise was $8M over the past year. But the distribution is rather wide. Median for $1M SAFE raise was a $10M cap. 𝗗𝗶𝗹𝘂𝘁𝗶𝗼𝗻 • Since most SAFEs are post-money, the dilution is easy to calculate from the raise amount and the valuation cap. Companies raising between $500K-$1M sold about 9%-12% of the business.    𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁𝘀 • They just don't get the love that valuation caps do. They appear in far fewer SAFEs and they are much less negotiated (the market seems to have settle on 20% in most cases) Data just like this flows into 23,000 inboxes every Thursday morning - type "Carta Data Minute" into your search bar to subscribe." All the slides here https://lnkd.in/guisSbuc

32

3 Comments