Shifting Dynamics in European Venture Capital

Welcome back to the Alt Goes Mainstream podcast.

Today’s guest is an expert in financial services and capital markets who has experience as both a strategic investor and a VC.

We welcome Rana Yared, a General Partner at Balderton, where she co-leads their Growth Fund. She came to Balderton in 2020 from across the pond, where she was a Partner at Goldman Sachs, first in the Principal Strategic Investments Group, a balance sheet investing team, and later in GS Growth, when the group became part of the GS Growth efforts that began to take in outside LP capital. At Goldman, Rana oversaw investments in Financial Technology and Enterprise Technology as well as the commercialization of Goldman’s technology assets in both NYC and London. She represented Goldman on the boards of Tradeweb, NAV, Vestwell, New York Shipping Exchange, and Swapclear @ LCH. She currently serves on the board of Tradeweb in an independent capacity.

Coming off of a fundraise of $1.3B in new capital across early and growth stage funds at Balderton, Rana and I discussed what LPs were interested in and why Europe is a compelling investment ecosystem. We had a fascinating discussion about:

• Revolutionary and evolutionary innovations in financial services and private markets, including the likes of iCapital, Tradeweb, Revolut.
• Why global tech companies can be built in Europe, with Revolut, a Balderton portfolio company, as an example.
• Why London and Europe are compelling fintech and financial services ecosystems.
• How LPs should look at the European investment opportunity.
• Differences and benefits / drawbacks of being a strategic / permanent capital investor versus being an independent VC fund.
• The importance of being a risk manager in venture.

Thanks Rana for coming on the show to share your wisdom and views on Europe, venture, and private markets. We hope you enjoy.

A word from AGM podcast sponsor, Ultimus Fund Solutions

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We thank Ultimus for their support of alts going mainstream.

Show Notes

00:00 Introduction and Ultimus Sponsor Message

01:59 Introducing Balderton Capital Partner, Rana Yared

04:16 Rana's Journey from Goldman Sachs to Balderton

04:25 Transition from Investment Banking to VC

06:26 Insights on Financial Services and Market Structure

06:37 Investing in Market Structure

09:05 Disruptive vs. Evolutionary Innovations in Fintech

12:53 Partnering with Incumbents

14:31 The Importance of Durability and Product Velocity

18:11 Strategic Investing vs. Venture Capital

21:21 Investing in the European Ecosystem

27:06 The Exciting Potential of Revolut and European FinTech

27:21 FinTech Giants in Germany

27:54 European Companies' International Advantage

28:55 Investor's Perspective on European Expansion

29:48 The Role of Venture Capital in Europe

29:22 Challenges and Strategies for European Investors

30:20 The Importance of Local Presence

30:55 The Future of European Ecosystems

31:28 US VCs Entering Europe

32:15 Bridging the Talent Gap

34:02 Mentorship and Expertise

35:52 The Role of LPs and European Investment Opportunities

37:23 Challenges for European Pensions and Endowments

38:49 Innovations in Fund Structures

41:27 The Impact of Governmental Participation in Venture

42:22 Exciting Opportunities in European Venture

43:10 FinTech's Massive Potential

43:59 Europe's Unique Financial Services Advantages

44:53 Geopolitical Concerns for Investors

45:51 Lessons from War Studies Applied to Investing

47:11 The Future of Retirement Investments in Europe

49:13 The Importance of Patience in Investing