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20VC: Lessons Building Nubank to the Largest Neobank in the World, How AI Changes The Future of Finance, Leadership Lessons from Sequoia's Doug Leone & What European and US Fintech Can Learn From LATAM with David Velez, Founder @ Nubank

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Sep 11, 2023

David Velez, Founder and CEO of Nubank, discusses the incredible journey of building one of the world's largest neobanks, with half of Brazil's adults as customers. He shares insights from his time at Sequoia Capital and highlights key factors behind Nubank's rapid growth. Velez explores how AI will revolutionize financial services and the valuable lessons Western fintech can learn from LATAM markets. He also touches on balancing leadership with fatherhood, providing a relatable glimpse into his personal life.

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ANECDOTE

Unique Interview Process

David Velez's Sequoia interview was unlike any other, starting with Doug Leone, the head of the firm.
The questions focused on personal character traits rather than his resume, like his relationship with his parents.

ANECDOTE

Balancing Act

David Velez juggled business school and working for Sequoia, prospecting Brazilian firms early in the morning before class.
He frequently flew to Sao Paulo with Doug Leone for whirlwind one-day trips, meeting companies and signing term sheets.

INSIGHT

The Power of Reading People

Doug Leone's ability to read people is his biggest strength, essential in both running a business and investing.
Velez adopted this focus on character traits in Nubank's hiring process, prioritizing strengths and weaknesses over general competence.

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David Velez is the Founder and CEO of Nubank, one of the largest and fastest-growing financial institutions in the world. 1 in 2 people in Brazil alone have a Nubank account. Nubank's purple credit card in Mexico is the highest-rated NPS product of any consumer product in the world. Before founding Nubank in 2013, David was a partner at Sequoia Capital between 2011 and 2013, in charge of the firm’s Latin American investments group. Before Sequoia, David worked in investment banking and growth equity at Goldman Sachs, Morgan Stanley and General Atlantic.

In Today's Episode with David Velez We Discuss:

1. From Sequoia Partner to Creating One of the Largest Financial Institutions:

What was the Sequoia interview process like?
What questions did Doug Leone really dive into when hiring David?
What impressed David most about how Sequoia interview and win talent?
What are 1-2 of David's biggest lessons from working with Doug Leone?

2. From a Small House to a $BN Public Company:

What does David believe are the 1-2 core but non-obvious reasons why Nubank scaled so fast?
What does David believe are the most non-obvious but massive opportunities Nubank has to 10x from here?
Why does David believe emerging market fintech providers will be more valuable than Western fintechs?
What does David believe Western fintechs and regulators can learn from BRIC economy fintechs?

3. How AI Changes The Future of Financial Services:

How does David believe AI will change financial services?
What products are the lowest-hanging fruit? Which products will be harder for AI to serve?
How will AI handle the ambiguity of which master to serve; the consumer and their experience or the bank and their fees and profit motive?
Will banks need to own and operate their own models? If using other models, what will differentiate them when they are layers on top of someone else's technology?

4. David Velez: The Leader and Father:

What does it mean to be a great listener? How does David approach it?
What has been David's biggest lessons from Sequoia on culture? What works? What does not?
What are David's biggest pieces of advice to raise kids that are not spoiled and are hard-working and humble?
How does David think about "efficient giving" with the philanthropy he does today?
What is the big paradox and challenge in philanthropy today?