Cillufo: Valuation changes will spark increased bank acquisitions of fintech startups
Bill Cillufo · 20VC: How Today's Market Changes How Companies Should Approach Burn and Runway, Are Financing Markets Closing? How To Know When To Pay Up vs Stay Price Disciplined & Why The Most Important Thing in Venture is Generating Positive Selection with Bill Cilluf · Apr 22, 2022 · at 22:43
Bill Cillufo, Partner at QED, addresses shifting market dynamics and how public fintech valuation corrections enable traditional banks to acquire fintechs.
0:00 / 0:12exact quote · 12.6s
720p mp4 · rendered on demand · StarZero watermark
“The banks so far have held up generally much better than the fintechs in the public markets, and so valuation environment might become more conducive to some more sort of fintech to bank type M&A. We've started to see some of it. I think there's probably more that will come.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Bill Cillufo
Cillufo: Early-stage valuations will drop but avoid the late-stage crash
“And I do think as the later stage comes down, probably eventually that'll flow in, but I don't think there'll be the same level of crash at the early stage that there is later.”
Cillufo: Early-stage value investing risks severe adverse selection
“Truly being a, quote, value investor at the early stage, that has a serious risk of some adverse selection problems”
Cillufo: QED passed on Nubank and Loft seed rounds over high valuations
“We turned down both NewBank and Loft at their seed stage, right? So in both cases, we knew the CEO long before they had the idea for the company... And in both cases, they had what at the time looked like offer sheets with really high valuations. We looked at …”
Cillufo: VCs cannot rely on operator skills to fix incomplete founder teams
“One of the terms we use is operators masquerading as investors. A lot of us have experience either at Capital One or at startups or other places operating businesses. And I do think at times we've fallen in love with an idea. We may not have been totally sold …”
Cillufo: Venture firms that move slowly suffer from adverse selection
“Speed has become a weapon in the market. Back to the discussion of positive selection. If you're not moving quickly, you're going to get adversely selected.”
Cillufo: Growth companies should plan to avoid fundraising for 12–18 months
“Related to the growth stage companies, I think very similar conversations are happening across geographies, across business types, and it's almost all of the flavor of, look, you shouldn't be planning on needing to raise money in the next 12 to 18 months.”