Investment opportunities in FinTech

Bluntly, we believe the financial system is undergoing a set of long overdue structural changes.  In time, the industry will deliver much greater value to customers – especially to consumers and SMEs. Much of the customer value will ultimately be delivered via incumbents. Most (almost all) FinTech startups will fail.  Assembly Capital Advisors helps make sense of a complex picture. We help you find and back the winners.

Finance has embarked on a roller coaster ride from which it will emerge very different.

 

Assembly looks forward to making a positive contribution to the new financial system which society needs and to delivering excellent returns to its investors.

Assembly Capital Advisors is being created with the aim of delivering outsize investment returns for its limited partners.  We believe we will also be supporting a series of changes that will create huge social utility.

 

Venture capital investment is, of course, intrinsically risky when compared to many other forms of investment.  However, given what is happening to finance, we believe it is possible to make very large returns for our investors by:

  1. Understanding the macro perspective so that we invest in line with structural changes in the industry, especially those in regulation, information technology and its possibilities, and consumer behavior and needs.
  2. Getting deep into the firm-specific details so that we can exercise ultra-selectivity in choosing our portfolio companies.

We believe the VC industry is another example of the "barbell effect".  The most successful firms are likely to be those which benefit from positive selection of investment opportunities – i.e., those which are perceived by the founders of attractive startups as delivering value.  This could be specialist knowledge, in the case of small deeply-specialized firms, or validation from large ‘brand name’ firms.  Assembly firmly positions itself as one of the former and will not drift into the middle territory of acting as a generalist VC.

 

Why a VC at all?  Many of the most exciting investment opportunities today either do not come to the public equity markets or do so at a much later stage (e.g., Uber, AirBnB and many others).  It is debatable whether this is a positive development or not for society, but the simple reality is that the public equity markets provide less access to growth than they used to.

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