Inside the $5B Plaid Deal That Never Happened and the Massive Business Model Transition That Did
Run the Numbers
Navigating Growth in a Startup Environment
This chapter explores the speaker's journey through eight years at a fast-growing company, emphasizing the challenges and opportunities in understanding customer needs and financial health. It contrasts different business models and discusses how a deep comprehension of financial statements can guide product development and enhance customer relationships.
If you’re curious about what it’s really like to navigate a multibillion-dollar acquisition deal during a global pandemic, while under intense scrutiny of the Department of Justice, this episode is for you. Jason Pate, Chief Strategy Officer at Plaid, takes us behind the scenes of Visa’s $5 billion bid to acquire Plaid and why it ultimately didn’t happen. Jason also explains the massive evolution of Plaid from a linking infrastructure company to a thriving network business powering some of the biggest names in fintech. The conversation delves into the company’s pivotal moments, including its recent $575 million fundraising round to solve for employee RSU liquidity. Beyond that, Jason shares lessons from his experience, unpacking the importance of understanding a customer's P&L, breaking down how to build durable fintech revenue streams through diversification, and offering candid insights on negotiation, the future of payments, and making big bets to fix something that isn't broken.
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LINKS:
Jason Pate on LinkedIn: https://www.linkedin.com/in/jason-pate-50735310/
Plaid:
https://plaid.com
CJ on X (@cjgustafson222): https://x.com/cjgustafson222
Mostly metrics:
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TIMESTAMPS:
(00:00) Preview and Intro
(01:43) Sponsor – Brex | Aleph | RightRev
(06:08) Duke and “I Hate Christian Laettner”
(07:45) Jason’s Product Development Experience and Career Journey
(10:38) The Importance of Understanding Your Customer’s P&L
(12:41) Plaid’s Transition From Linking Infrastructure to Network Business
(15:23) Sponsor – Navan | Rillet | Pulley
(18:55) Building the Plaid Data Network and Ecosystem
(25:41) Friction in Payments: Feature Versus Bug
(27:46) The Future of Payments: Check-In Versus Checkout
(31:21) Negotiations: Less Like Chess, More Like Marco Polo
(35:21) Identifying Gives That Aren’t Actually Gives
(37:10) Plaid’s Unsuccessful Acquisition by Visa
(40:45) Being Interviewed by the DOJ During the Pandemic
(43:49) Plaid’s Recent Raise and the Unconventional Reason for It
(47:00) Valuations: Fundraises Versus Sales
(48:19) Building an Equity Program When Companies Stay Private Longer
(50:48) Multi-Product Diversification: The Key to Durable FinTech Revenue
(53:07) When & How To Transition From an Infrastructure to a Network Business
(59:03) Jason’s Philosophy on Ramping Team Members
(1:01:04) Lessons From Roger Federer
(1:02:52) Long-Ass Lightning Round: A Career Mistake
(1:04:03) Advice to Younger Self
(1:04:48) A Helpful Tactic for Negotiations
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SPONSORS:
Brex offers the world's smartest corporate card on a full-stack global platform that is everything CFOs need to manage their finances on an elite level. Plus, they offer modern banking and treasury as well as intuitive expenses and accounting automation, bill pay, and travel. Find out more at https://www.brex.com/metrics
Aleph automates 90% of manual, error-prone busywork, so you can focus on the strategic work you were hired to do. Minimize busywork and maximize impact with the power of a web app, the flexibility of spreadsheets, and the magic of AI. Get a personalised demo at https://www.getaleph.com/run
RightRev automates the revenue recognition process from end to end, gives you real-time insights, and ensures ASC 606 / IFRS 15 compliance—all while closing books faster. For RevRec that auditors actually trust, visit
https://www.rightrev.com
and schedule a demo.
Navan is the all-in-one travel and expense solution that helps finance teams streamline reconciliation, enforce policies automatically, and gain real-time visibility. It connects to your existing cards and makes closing the books faster and smarter. Visit https://navan.com/runthenumbers for your demo.
Rillet is the AI-native ERP modern finance teams are switching to because it’s faster, simpler, and 100% built for how teams operate today. See how fast your team can move. Book a demo at https://www.rillet.com/metrics.
Pulley is the cap table management platform built for CFOs and finance leaders who need reliable, audit-ready data and intuitive workflows, without the hidden fees or unreliable support. Switch in as little as 5 days and get 25% off your first year: https://pulley.com/mostlymetrics.
#Plaid #Fintech #acquisition #fundraise #employeeRSU #BusinessTransition
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