Dimitri Dadiomov, Co-Founder & CEO of Modern Treasury
Oct 16, 2023
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Dimitri Dadiomov, Co-Founder & CEO of Modern Treasury, discusses the complexity of money movement, liquidity issues during a bank run, ideal startup timing, and the future of Modern Treasury.
Modern Treasury automates the process of moving and reconciling funds, streamlining money movement for businesses.
During the crisis involving Silicon Valley Bank's shutdown, Modern Treasury played a crucial role in helping companies navigate the situation and rebuild their financial flows.
Modern Treasury aims to revolutionize the banking industry by providing reliable and efficient financial infrastructure, and addressing shortcomings like slow payment rails and outdated systems.
Deep dives
Founding Modern Treasury and Solving the Movement of Money Problem
Dimitri Daddiamov, co-founder and CEO of Modern Treasury, shares his journey of founding the startup and solving the problem of efficiently moving money into and out of companies. Dimitri's experience working at Lending Home exposed him to the pain points of integrating with banks for payment flows, which led to the idea of creating a software platform to streamline money movement. He highlights the challenges of scaling operations and the manual work involved in reconciling transactions, which prompted him to build a product that automates these processes. Modern Treasury's API-based platform connects software systems to banking systems, enabling businesses to move and reconcile funds seamlessly. Dimitri also discusses the future of payments and the emergence of new payment rails like FedNow, which will revolutionize transaction speed and efficiency.
The Swift Response to the Silicon Valley Bank (SVB) Crisis
Dimitri recounts his experience during the crisis involving Silicon Valley Bank's shutdown and freezing of funds. He discusses the rapid response from the FDIC, which temporarily suspended SVB's operations. Dimitri describes the immense uncertainty and panic that gripped entrepreneurs, investors, and finance heads during those critical 72 hours. He shares how Modern Treasury played a role in helping companies navigate the situation, providing real-time updates on payment systems, facilitating introductions to alternative banks, and supporting clients in rebuilding their financial flows. Dimitri also reflects on the ethical dilemma faced by entrepreneurs and investors deciding whether to withdraw funds or contribute to the problem.
The Importance of Banking Solutions for Startups
Dimitri emphasizes the significance of banking solutions for startups and the need for a reliable and efficient financial infrastructure. He discusses the trend of payments running through software and the increasing demand for modernizing banking operations. Dimitri sheds light on banking industry shortcomings, such as slow payment rails and outdated systems, which present opportunities for startups like Modern Treasury to innovate and provide enhanced services. He underscores the value of being a good partner to startups, understanding their unique needs, and helping them navigate the challenges of payment operations. Dimitri also explores the future of banking and the potential for significant changes and improvements in the industry.
The Journey of Modern Treasury and Lessons Learned
Dimitri shares his personal journey as a founder and the lessons learned along the way. He emphasizes the importance of consistency and endurance in building a successful startup, highlighting the need for long-term commitment and resilience. Dimitri also reflects on the role of prior experiences, such as working at startups and venture capital firms, in preparing him for the challenges of entrepreneurship. He discusses the value of diverse experiences in helping founders understand various industries and identify pain points that can be addressed with innovative solutions. Dimitri concludes by expressing his excitement about the future of Modern Treasury and the opportunity to revolutionize the financial landscape.
The Story Behind the Name Change and the Future of Modern Treasury
Dimitri shares the story behind the name change from Turnkey Treasury to Modern Treasury. He explains that the initial name sparked confusion and lacked a connection to the company's mission. The decision to rename the company came after the Y Combinator acceptance and the realization that the original name did not align with the company's identity. Dimitri also provides insights into the future of Modern Treasury, including the company's focus on working with larger businesses and capitalizing on the evolving landscape of payment technologies. He discusses the introduction of FedNow, a new payment rail by the Federal Reserve, which will bring faster and more efficient transactions. Dimitri expresses his enthusiasm for helping companies navigate the changing payment landscape and being at the forefront of innovation in the financial technology industry.
Today we're talking with Dimitri Dadiomov of Modern Treasury, a startup Y Combinator funded in 2018. Dimitri works in a very important world whose existence is hidden from most people: the movement of money into and out of companies. Listen in as we follow the money!
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