StarZero All shows Try the podcast clipper →

Dec 11, 2016 · 22m · top-founders

EP 505: Qwil.co Pre-Pays Contractors/Freelancers $10M in 2016 with CEO Johnny Reinsch

Nathan Latka · 10m spoken Johnny Reinsch · 8m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The Top, host Nathan Latka interviews Qwil.co co-founder and CEO Johnny Reinsch, exploring how the FinTech startup utilizes proprietary algorithmic underwriting to advance millions of dollars in instant payments to freelancers without default risk.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 55.9% of the talking time here. How this is scored →

Nathan as informed peer 4.0 Guest teaching 4.0 Guest disagreement 2.0 Nathan pushing back 3.8
05100:0010:0020:000:48–4:00 · Nathan as informed peer 3/10 Productivity Spotlight on Acuity Scheduling Software Nathan introduces Johnny and inquires about his shift from corporate M&A law into cryptocurrency and founding Qwil. Johnny explains Qwil's value proposition of solving cash flow delays for freelancers via instant payment advances.4:01–7:10 · Nathan as informed peer 4/10 Qwil’s Early Growth and Debate Over Convertible Note Funding Nathan aggressively presses Johnny on undisclosed fundraising rounds, insisting an SEC Form D must be filed publicly within 15 days if a round closed. Johnny, a former M&A lawyer, schools Nathan by noting that convertible notes without direct equity issuance do not require the Form D disclosure Nathan is citing.7:10–10:07 · Nathan as informed peer 5/10 2016 Volume Projections and Advance Rate Mechanics Nathan explores transaction metrics and presumes Qwil operates like a traditional bank earning interest on the float. Johnny clarifies the difference between volume under management and advance rates, and corrects Nathan's float assumption by citing strict regulatory restrictions against touching client cash.10:10–12:13 · Nathan as informed peer 5/10 Algorithmic Credit Underwriting and Zero Default Rates Johnny explains Qwil's real-time credit underwriting algorithm that maintains a zero percent default rate. Both host and guest discuss how automated factoring replaces slow and expensive legacy bank underwriting.12:13–17:20 · Nathan as informed peer 5/10 Qwil’s Fee Structure, Risk Discounting, and Profit Margins Nathan drills down into how Qwil extracts profit margins by discounting advance rates based on counterparty risk. Nathan pushes Johnny on why platforms like Toptal or Upwork wouldn't already solve this, prompting Johnny to explain developer-side income guarantees.17:21–20:53 · Nathan as informed peer 2/10 Acuity Scheduling Mid-Roll Promotion and Special Offer Nathan transitions into an Acuity Scheduling mid-roll ad read before wrapping up with the rapid-fire Famous Five questions. The exchange remains lighthearted, concluding with Johnny's advice against going to law school.0:48–4:00 · Guest teaching 2/10 Productivity Spotlight on Acuity Scheduling Software Nathan introduces Johnny and inquires about his shift from corporate M&A law into cryptocurrency and founding Qwil. Johnny explains Qwil's value proposition of solving cash flow delays for freelancers via instant payment advances.4:01–7:10 · Guest teaching 7/10 Qwil’s Early Growth and Debate Over Convertible Note Funding Nathan aggressively presses Johnny on undisclosed fundraising rounds, insisting an SEC Form D must be filed publicly within 15 days if a round closed. Johnny, a former M&A lawyer, schools Nathan by noting that convertible notes without direct equity issuance do not require the Form D disclosure Nathan is citing.7:10–10:07 · Guest teaching 6/10 2016 Volume Projections and Advance Rate Mechanics Nathan explores transaction metrics and presumes Qwil operates like a traditional bank earning interest on the float. Johnny clarifies the difference between volume under management and advance rates, and corrects Nathan's float assumption by citing strict regulatory restrictions against touching client cash.10:10–12:13 · Guest teaching 4/10 Algorithmic Credit Underwriting and Zero Default Rates Johnny explains Qwil's real-time credit underwriting algorithm that maintains a zero percent default rate. Both host and guest discuss how automated factoring replaces slow and expensive legacy bank underwriting.12:13–17:20 · Guest teaching 4/10 Qwil’s Fee Structure, Risk Discounting, and Profit Margins Nathan drills down into how Qwil extracts profit margins by discounting advance rates based on counterparty risk. Nathan pushes Johnny on why platforms like Toptal or Upwork wouldn't already solve this, prompting Johnny to explain developer-side income guarantees.17:21–20:53 · Guest teaching 1/10 Acuity Scheduling Mid-Roll Promotion and Special Offer Nathan transitions into an Acuity Scheduling mid-roll ad read before wrapping up with the rapid-fire Famous Five questions. The exchange remains lighthearted, concluding with Johnny's advice against going to law school.0:48–4:00 · Guest disagreement 1/10 Productivity Spotlight on Acuity Scheduling Software Nathan introduces Johnny and inquires about his shift from corporate M&A law into cryptocurrency and founding Qwil. Johnny explains Qwil's value proposition of solving cash flow delays for freelancers via instant payment advances.4:01–7:10 · Guest disagreement 5/10 Qwil’s Early Growth and Debate Over Convertible Note Funding Nathan aggressively presses Johnny on undisclosed fundraising rounds, insisting an SEC Form D must be filed publicly within 15 days if a round closed. Johnny, a former M&A lawyer, schools Nathan by noting that convertible notes without direct equity issuance do not require the Form D disclosure Nathan is citing.7:10–10:07 · Guest disagreement 2/10 2016 Volume Projections and Advance Rate Mechanics Nathan explores transaction metrics and presumes Qwil operates like a traditional bank earning interest on the float. Johnny clarifies the difference between volume under management and advance rates, and corrects Nathan's float assumption by citing strict regulatory restrictions against touching client cash.10:10–12:13 · Guest disagreement 1/10 Algorithmic Credit Underwriting and Zero Default Rates Johnny explains Qwil's real-time credit underwriting algorithm that maintains a zero percent default rate. Both host and guest discuss how automated factoring replaces slow and expensive legacy bank underwriting.12:13–17:20 · Guest disagreement 2/10 Qwil’s Fee Structure, Risk Discounting, and Profit Margins Nathan drills down into how Qwil extracts profit margins by discounting advance rates based on counterparty risk. Nathan pushes Johnny on why platforms like Toptal or Upwork wouldn't already solve this, prompting Johnny to explain developer-side income guarantees.17:21–20:53 · Guest disagreement 1/10 Acuity Scheduling Mid-Roll Promotion and Special Offer Nathan transitions into an Acuity Scheduling mid-roll ad read before wrapping up with the rapid-fire Famous Five questions. The exchange remains lighthearted, concluding with Johnny's advice against going to law school.0:48–4:00 · Nathan pushing back 2/10 Productivity Spotlight on Acuity Scheduling Software Nathan introduces Johnny and inquires about his shift from corporate M&A law into cryptocurrency and founding Qwil. Johnny explains Qwil's value proposition of solving cash flow delays for freelancers via instant payment advances.4:01–7:10 · Nathan pushing back 8/10 Qwil’s Early Growth and Debate Over Convertible Note Funding Nathan aggressively presses Johnny on undisclosed fundraising rounds, insisting an SEC Form D must be filed publicly within 15 days if a round closed. Johnny, a former M&A lawyer, schools Nathan by noting that convertible notes without direct equity issuance do not require the Form D disclosure Nathan is citing.7:10–10:07 · Nathan pushing back 4/10 2016 Volume Projections and Advance Rate Mechanics Nathan explores transaction metrics and presumes Qwil operates like a traditional bank earning interest on the float. Johnny clarifies the difference between volume under management and advance rates, and corrects Nathan's float assumption by citing strict regulatory restrictions against touching client cash.10:10–12:13 · Nathan pushing back 3/10 Algorithmic Credit Underwriting and Zero Default Rates Johnny explains Qwil's real-time credit underwriting algorithm that maintains a zero percent default rate. Both host and guest discuss how automated factoring replaces slow and expensive legacy bank underwriting.12:13–17:20 · Nathan pushing back 5/10 Qwil’s Fee Structure, Risk Discounting, and Profit Margins Nathan drills down into how Qwil extracts profit margins by discounting advance rates based on counterparty risk. Nathan pushes Johnny on why platforms like Toptal or Upwork wouldn't already solve this, prompting Johnny to explain developer-side income guarantees.17:21–20:53 · Nathan pushing back 1/10 Acuity Scheduling Mid-Roll Promotion and Special Offer Nathan transitions into an Acuity Scheduling mid-roll ad read before wrapping up with the rapid-fire Famous Five questions. The exchange remains lighthearted, concluding with Johnny's advice against going to law school.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 64% · guest 36%0:00 · Nathan 64% · guest 36%3:00 · Nathan 34.5% · guest 65.5%3:00 · Nathan 34.5% · guest 65.5%6:00 · Nathan 59.8% · guest 40.2%6:00 · Nathan 59.8% · guest 40.2%9:00 · Nathan 47.4% · guest 52.6%9:00 · Nathan 47.4% · guest 52.6%12:00 · Nathan 40.9% · guest 59.1%12:00 · Nathan 40.9% · guest 59.1%15:00 · Nathan 62.9% · guest 37.1%15:00 · Nathan 62.9% · guest 37.1%18:00 · Nathan 75.8% · guest 24.2%18:00 · Nathan 75.8% · guest 24.2%21:00 · Nathan 100% · guest 0%21:00 · Nathan 100% · guest 0%
Sharpest disagreement ▶ 5:17 Johnny refuses to disclose round details

Johnny brushes off Nathan's insistence that company funding data is already public on Form D filings with a teasing 'If you can find it'.

 Hardest push from Nathan ▶ 6:10 Nathan insists the round cannot be closed without SEC disclosure

Nathan repeatedly refuses Johnny's framing and challenges him on SEC filing requirements, declaring he intends to drill down until he gets the full story.

 Biggest teaching moment ▶ 6:38 Johnny explains convertible note equity filing rules

Johnny leverages his legal expertise to correct Nathan's assumption that all closed startup fundraises trigger immediate public Form D SEC filings.

 Nathan holds their own ▶ 8:06 Nathan maps out the advance rate mechanics

Nathan demonstrates operational expertise by translating Johnny's internal terminology into a clear scenario comparing total earnings under management to actionable advances.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Productivity Spotlight on Acuity Scheduling Software 3212 Nathan introduces Johnny and inquires about his shift from corporate M&A law into cryptocurrency and founding Qwil. Johnny explains Qwil's value proposition of solving cash flow delays for freelancers via instant payment advances.
Qwil’s Early Growth and Debate Over Convertible Note Funding 4758 Nathan aggressively presses Johnny on undisclosed fundraising rounds, insisting an SEC Form D must be filed publicly within 15 days if a round closed. Johnny, a former M&A lawyer, schools Nathan by noting that convertible notes without direct equity issuance do not require the Form D disclosure Nathan is citing.
2016 Volume Projections and Advance Rate Mechanics 5624 Nathan explores transaction metrics and presumes Qwil operates like a traditional bank earning interest on the float. Johnny clarifies the difference between volume under management and advance rates, and corrects Nathan's float assumption by citing strict regulatory restrictions against touching client cash.
Algorithmic Credit Underwriting and Zero Default Rates 5413 Johnny explains Qwil's real-time credit underwriting algorithm that maintains a zero percent default rate. Both host and guest discuss how automated factoring replaces slow and expensive legacy bank underwriting.
Qwil’s Fee Structure, Risk Discounting, and Profit Margins 5425 Nathan drills down into how Qwil extracts profit margins by discounting advance rates based on counterparty risk. Nathan pushes Johnny on why platforms like Toptal or Upwork wouldn't already solve this, prompting Johnny to explain developer-side income guarantees.
Acuity Scheduling Mid-Roll Promotion and Special Offer 2111 Nathan transitions into an Acuity Scheduling mid-roll ad read before wrapping up with the rapid-fire Famous Five questions. The exchange remains lighthearted, concluding with Johnny's advice against going to law school.

Statements from this episode (8)

Disclosure
Qwil charges flat fees competitive with Visa and Mastercard rates
“We make earnings available for them as soon as they've completed their work, and we do it at a very, very low price point. A flat fee that is typically competitive with even though the charges that Visa or MasterCard would charge for processing a payment over …”
Johnny Reinsch Dec 11, 2016 ▶ 3:16
Assertion Not checkable as stated
Qwil generated low seven-figure transaction volume in its first year
“I would say transaction volume is in low seven figures for the first year. That's a little misleading cause we haven't been live for that whole year. So that's actually transaction volume over the course of a few months.”
Johnny Reinsch Dec 11, 2016 ▶ 4:26
Prediction Not checkable as stated
Qwil predicts eight-figure transaction volume by the end of 2016
“We should be pushing you know, eight figures, I would imagine.”
Johnny Reinsch Dec 11, 2016 ▶ 7:21
Assertion Not checkable as stated
Between 25% and 50% of users accept Qwil's payment advances
“We find that somewhere between 25 to 50% of the advances that are offered or taken for various reasons.”
Johnny Reinsch Dec 11, 2016 ▶ 9:01
Assertion Not checkable as stated
Qwil claims a zero percent default rate on freelancer payment advances
“Currently zero.”
Johnny Reinsch Dec 11, 2016 ▶ 10:32
Disclosure
Qwil uses instant credit underwriting instead of rejecting users upfront
“We actually don't turn anyone away. It's more of if we're able to make some of the earnings available in advance or not. And that, that all happens actually on the spot using our credit underwriting algorithm.”
Johnny Reinsch Dec 11, 2016 ▶ 10:54
Assertion Not checkable as stated
Qwil serves thousands of contractors across tens of paying platforms
“We're in the thousands on contractors. And we work with tens, not quite hundreds, but of companies and platforms that are sort of paying out these independent contractors.”
Johnny Reinsch Dec 11, 2016 ▶ 14:09
Opinion
Reinsch: In-office colocation is always preferable to remote engineering teams
“Well it's always better to have in my opinion, you know, every, the team all in one place.”
Johnny Reinsch Dec 11, 2016 ▶ 19:28
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 2,600 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.

Try the podcast clipper Learn more