The Focal Point

Manufacturing doesn't look like it has a cash flow problem. That's exactly why it does.

The bottleneck in industrial finance isn't capital - it's infrastructure. A generation of companies are laying the foundation to unlock this data. Not fintech, but workflow software that will make industrial finance possible.

Machines drive billions in economic activity every day on rails built for humans. They need their own infrastructure.

Startups to Watch

When debt service costs can triple overnight, borrower risk shifts in months—not years. Traditional credit models can't keep up. This volatility is opening the door for AI-native companies building adaptive lending infrastructure.

While fraud companies race to detect faster, the smartest founders are building systems where fraud becomes structurally impossible. Through Blindspot, we're tracking three breakthrough approaches.

“We don’t invest in hardware" has been the go-to response for many VCs because software offers higher efficiencies. However, with AI, this mindset is shifting as the economics of hardware investments become increasingly compelling. With the right team solving a big problem, accepting a longer development timeline and high initial upfront costs might just be worth it for AI-powered hardware. Here's why:

As consumer trends continue to evolve, some companies stand out by adeptly capturing these shifts. Here are four remarkable female C-suite executives in Los Angeles-based companies who are at the forefront of these changes. They are not only steering their companies through these uncertain times but are also redefining the future of their industries with their leadership and influence.

AI's ability to revolutionize industries, alongside its expanding energy footprint, presents a complex dilemma. While AI can reduce energy consumption and optimize efficiencies, it also demands substantial computing power, which can strain energy grids and contribute to air pollution. This paradox raises an important question: How can we leverage AI's strengths while mitigating its climate impact?

Robotics and material science are revolutionizing manufacturing, but what about the financial solutions needed to bring these innovations to life? I think there's an interesting opportunity for fintech to bridge the gap between cutting-edge ideas and commercially viable businesses in advanced manufacturing. Here's how:

AI is making headlines once again with OpenAI's Sora, generating lifelike video from simple text inputs. This mind-blowing innovation is pushing the boundaries of what we thought was possible. However, the potential of AI extends far beyond creating realistic videos. It's a driving force that can transform industries and our everyday lives. But to truly harness this power, there's a critical factor we need to consider: representation. AI must accurately represent the diverse range of people it serves. Here's why:

The once-unstoppable fintech sector has hit a major roadblock. After years of soaring valuations and record-breaking funding rounds, the industry experienced a staggering 50% decline in investment in 2023. This dramatic shift, a stark contrast to the previous boom years, begs the question: what happened, and what's next for fintech?

From its simple beginnings of data crunching to now generating autonomously produced content, AI is continuing to transform the digital space. Its newest version, generative AI, has piqued consumer interest with its ability to generate human-like content, images, and audio - setting a precedent for what's technically achievable. This technology opens a new door of possibilities for B2B startups; ones that are creating the algorithms (such as OpenAI) and ones that are implementing them into real-world applications.

The headlines in the past few weeks have been inundated with FTX - the once high-flying cryptocurrency exchange that went from being one of the most lauded upstarts in the industry to being mired in scandal and embroiled in lawsuits. As shocking as this may be for the crypto ecosystem, which has yet to be regulated, one may be surprised to know that in the traditional world, where financial services have been regulated since the Civil War, financial institutions are still constantly facing regulatory concerns and financial crime.

Crypto backed loans and wallets, neobanks in emerging markets and personal finance tools tailored for millennials are the fintech trends I predict will gain momentum this year. Here’s why.

I had the pleasure of addressing 500+ John Deere Financial employees as the keynote speaker during their quarterly company-wide meeting. I shared my thoughts on how lenders can utilize their data as a product to drive innovation by partnering with Fintechs. [Presentation]

Forming partnerships with banks is challenging for startups as they need to navigate through bureaucratic approval structures and legacy technology systems. For early-stage startups, this process is time-consuming and requires extensive resources with no guarantee of acquiring a paying customer in the end. From my experience working with banking innovation teams, here are 4 things startups should consider while entering the banking sales cycle to increase their chances of success.

Autonomous finance is a financial service that automatically conducts personal finance management based on algorithms, rather than manual human input. Essentially, a firm can manage their client’s spending, savings or investments automatically, without the firm or even the client manually submitting information. Here are the trends that are happening in this space.

As customer preferences change, banks are challenged with keeping up with expectations and the slew of alternative options. However, to keep pace with current innovation, banks can leverage their competitive advantage, customer data. Data can be used to enhance the customer experience by offering personalization throughout the customer lifecycle. Startups support this approach in a number of ways.

As fintech is developed on the basis of automation and modern technology, banks are partnering with startups to accelerate their operational transformation from human-based to digital.

Clubhouse, the social audio app that enables users to listen and speak to each other in real time, has 2 million weekly active users but has not generated any revenue yet. They partnered with Stripe to enable listeners to tip creators, but Clubhouse will not take a cut. Well, if partnering with a fintech company isn't a part of the revenue model yet, how else can Clubhouse finally monetize their service? Here are my thoughts.

Square, a payments technology company, acquired Tidal, a global music streaming service, for almost $300M. In a tweet, Square’s founder stated that “it comes down to a simple idea: finding new ways for artists to support their work.” As artists get paid from earning streaming royalties, performing and selling merchandise, this partnership can go in multiple directions. Here are my ideas.

Social media has opened the door into a financial world that many knew existed but few actually understood. Although the power of social media is evident, it was still a shock to see a stock trading community on Reddit disrupt the financial market using a trading app, Robinhood. Interestingly enough, this heightened interest in trading benefited not only Robinhood but also its competitor, Public.com.

Political unrest, a deadly virus, and soaring unemployment may sound like an interesting night at the movies, but it's actually a succinct description of the year 2020. As our new normal materializes, what does it all mean for fintech?