Maria Gotsch details how investment gains are recycled into new civic projects rather than paid out as carried interest or investor dividends.
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“So we have the investor's money for 45 years, and if we make returns, it comes back to us to fund new projects.”
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More from Maria Gotsch
Opinion
SoFi is a rare exception among consumer fintech startups scaling independently
“So I think people like SoFi are the exception to the rule. Where you're able to, you know, come in with a new product that the, an area where the banks are not paying it, you know, are not working for whatever reason, and then expand to be a big company.”
Maria GotschMay 8, 2017▶ 17:59653: She Invests $120 Million Into Financial Tech Companies, 39 Graduates, 6-8 New Per Year with New York Partnership Fund CEO Maria Gotsch
PredictionNot checkable as stated
Scaling fintech startups will ultimately partner with or be acquired by incumbents
“I think you're going to see most of the companies end up being when they get to a certain size or asset size. Partnering or acquiring with a large institution because they have the regulatory expertise and they have the distribution power.”
Maria GotschMay 8, 2017▶ 18:16653: She Invests $120 Million Into Financial Tech Companies, 39 Graduates, 6-8 New Per Year with New York Partnership Fund CEO Maria Gotsch
PredictionNot checkable as stated
Enterprise interest in distributed ledger enabling tech will rebound by 2019
“And I predict that in like two years, there will be an increased interest back in more enabling technologies that will help fit around the distributed ledger, but the core systems, people have made their bets.”
Maria GotschMay 8, 2017▶ 9:44653: She Invests $120 Million Into Financial Tech Companies, 39 Graduates, 6-8 New Per Year with New York Partnership Fund CEO Maria Gotsch
AssertionSupported
Henry Kravis raised Partnership Fund's capital in the late 1990s
“Henry Kravis of KKR raised the funds in the late nineties, and he raised them from major, major corporations in New York, as well as individuals.”
Maria GotschMay 8, 2017▶ 2:21653: She Invests $120 Million Into Financial Tech Companies, 39 Graduates, 6-8 New Per Year with New York Partnership Fund CEO Maria Gotsch
Disclosure
Partnership Fund operates as a civic evergreen vehicle without profit motive
“We're structured as an evergreen fund. So the investors put up the money not to make a financial return, but to try to create jobs and expand the economy in New York City.”
Maria GotschMay 8, 2017▶ 2:36653: She Invests $120 Million Into Financial Tech Companies, 39 Graduates, 6-8 New Per Year with New York Partnership Fund CEO Maria Gotsch
Disclosure
FinTech Innovation Lab takes small warrant coverage from all participants
“Initially, we take a very small warrant coverage and everybody that comes into the lab. Now we will invest in some of the graduates post program, but the program it's, but that's a separate, that's separate from the lab.”
Maria GotschMay 8, 2017▶ 7:17653: She Invests $120 Million Into Financial Tech Companies, 39 Graduates, 6-8 New Per Year with New York Partnership Fund CEO Maria Gotsch
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