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Understanding How The Innovator’s Dilemma Affects You

Both Sides of the Table

The thesis of the book is that incumbents in markets – especially large and well entrenched markets – seldom survive fundamental technology changes in their industries. It should affect how you think if you are an incumbent but also if you’re a startup. So the startups tend to focus on totally new customers.

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Parafin Transforming Delivery of Small Business Financial Services Closes $100M Series C

American Entrepreneurship

Embedded finance infrastructure makes financing decisions based on real-time data. Fintech startup Parafin innovatively tackles this challenge through its embedded finance infrastructure used by partners such as DoorDash, Amazon, and others. and Canada. This has historically hindered small business growth.

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When AI Favors the Incumbents

Tomasz Tunguz

Incumbents have lept onto advances in generative machine learning more aggressively than any trend in recent technology history. Mobile, cloud, social - startups led each of those waves. But generative ML differs because incumbents are pushing the envelope.

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Israeli fintech Personetics raises $85M for tools to help incumbents personalize banking services to compete with neobanks

TechCrunch

Today a startup that is building tools to help incumbent address this challenge is announcing a round of funding on the back of a lot of demand for its services. “T hey are seeing the impact of the alternatives,” he said, with the migration away from the incumbents happening gradually. That’s a common thing.”

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Fintechs could see $100 billion of liquidity in 2021

TechCrunch

2019 looks to continue another lights-out year for fintech startups. For the fourth straight year, the publicly traded fintechs massively outperformed the incumbent financial services providers as well as every mainstream stock index. 2020 performance of individual fintech companies vs. SPX Image Credits: CapiQ, Yahoo Finance.

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How I Invest

Both Sides of the Table

I was speaking recently to the team at NuOrder , an LA-based company we’re an investor in about “realism in startups” — an impromptu talk I have given to any of our portfolio companies who ask. I spend hours thinking about the products, competitors, market opportunities, recruiting and financing of these businesses.

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Proptech in Review: 3 investors explain how finance-focused proptech startups can survive the downturn

TechCrunch

Startups operating in the financial side of the real estate tech market suddenly faced a surge in demand, and many departed on hiring sprees to keep up. This meant that the once high-flying startups were suddenly dealing with the opposite problem — too many employees and not enough transactions to make money.

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