#281
The Meme Generation
We all know millennials get the ultimate bad rap as brash, narcissistic, and entitled. But few can deny their impact on corporate America and the manner in which financial services are delivered.
So what about the lesser talked about Generation Z, otherwise known as the post-millennials, that sits behind them?
With 66m Americans born between 1995 and 2005, Generation Z is now the largest living generation in the US. The generation has never known a world without the Internet - it has been raised in an on-demand culture that has been shaped by social media, mobile technology, and a post 9/11 world.
As expected, Gen Zers desire a high amount of personalization from the services in which they engage - and are more likely to engage via mobile than web. As it pertains to the wealth and asset management space, Gen Zers are more likely to vote with their pocketbook and put their money where their values are.
But contrary to expectations, Generation Z seems to be embracing pragmatism over idealism – having seen the plight of millennials, early indications are that Gen Z is much more conservative when it comes to taking on student loans and personal debt. Brands that have thrown digital ad dollars at millennials may need to re-think their strategy – this new generation is much more likely to rely on word-of-mouth and social influencers.
So for the “meme generation” (our name for Generation Z until one is officially sorted out), we are serving one up that may help you better communicate with them...
Portfolio News
Announcing US stock index token, powered by UMA and Dai - Congrats to portfolio company Universal Market Access for forging an alliance with MakerDAO to launch USStocks, an ERC20 token representing synthetic ownership in the S&P 500. As part of our DeFi thesis, we believe in a future where anyone with access to an Internet connection can gain exposure to any financial market through a single marketplace for risk transfer. Read more
Dharma markets report #5: Visions of Dai - Portfolio company Dharma Labs reviews MakerDao's greatest ever stress-test, with Dai spending most of March trading under its desired $1.00 USD peg. The company also revealed its tremendous growth, with over $280k in borrow volume and $350k in lend volume last week alone. Read more
The Meme Generation
Corporate America can't afford to ignore Gen Z - Companies, admitting they got millennials wrong, try memes and ethical stances to lure the newest spenders. Read more
In search of Generation Z - While Gen Z's name is in flux, we are beginning to learn a lot more about their habits - and they are more earnest, hardworking, and driven by conservative views of success than you may expect. Read more
Industry News
Fitness trackers enter the pet insurance market - In the latest development in the world of “insurtech”, MoreThan has launched a partnership with PitPat, the dog world’s equivalent of the FitBit, by offering cash rewards of up to £100 for owners who regularly exercise their pet. Read more
Banks use AI to catch rogue traders before the act - Banks have already made major leaps in trader surveillance in the past few years, but "false positives" remain an issue with one bank admitting it was getting 450,000 alerts per month for “silly things,” like a trader asking his wife for a favor. Read more
Big Banks’ clampdown on data puts Silicon Valley apps on alert - To secure the data, banks are starting to demand that apps stop logging in as customers, while JPMorgan and Capital One lead the shift to gateways with strict terms of access. Read more
Peter Thiel backed crypto broker secures its BitLicense - Tagomi, the New York startup that allows institutional and HNW clients to trade cryptocurrencies across multiple exchanges through one portal, has secured its license in NY from the Department of Financial Services. Read more
DE Shaw: inside Manhattan’s ‘Silicon Valley’ hedge fund - The FT profiles the rise of D.E. Shaw from a "ramshackle startup" with "geeky programmers trying to crack the code to financial markets" to a $50b quantamental powerhouse. Read more
Crypto mining giant Bitmain lets Hong Kong IPO application lapse - The lapse follows rumors that Bitmain's P&L has inverted from highly profitable to unprofitable in the back half of 2018. The company's future IPO plans remain uncertain. Read more
Marijuana banking bill approved by Congressional committee - The House Financial Services Committee has voted to approve legislation that would improve marijuana businesses' access to banks. The banking bill will next move to Congress, where floor action has not yet been scheduled. Read more
Marqeta’s long road to success - Forbes reviews Marqeta's bumpy ride - from being at the end of its cash runway in the Spring of 2015, to partnering with winners such as Square and Instacart, to its recent financing at roughly $2 billion valuation. Read more
RBC iShares launches its first set of ETFs under new partnership - BlackRock and RBC have joined forces to begin trading six new ETFs on the Toronto Stock Exchange. The funds integrate environmental, social and governance (ESG) factors into the investment process. Read more
Select Financings
Airwallex - Australia based enterprise platform for cross-border payments has raised a $100m Series C financing led by DST. The company is now valued over $1b. Read more
Kyriba - San Diego based cloud treasury and financial solutions company raised $160m of growth equity led by BridgePoint. The funding round values the software company at $1.2b. Read more
MotoRefi - Virginia based auto refinance startup has raised a $4.7m Series Seed led by Accomplice, with participation from QED and Motley Fool Ventures. Read more
Pagantis - Madrid based e-commerce lender has raised $75m in Series B funding, led by Prime Ventures, SPF Investment Management, and Rinkelberg Capital Group. Read more
Prosperity - New York based wealth management app has raised a $9m Series A from Accel and Greycroft. Read more
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