The Boost VC Podcast

Ep. 92: The VC’s Role as the Sixth Man—with FinTech Investor Michael Sidgmore of Broadhaven Ventures

Episode Summary

Michael is a Partner at Broadhaven Ventures, an independent investment bank serving the financial services industry. In his role at Broadhaven, Michael focuses on sourcing, investing and managing investments in early-stage FinTech startups. Prior to joining the firm, he served as a pre-product employee at iCapital Network and the first sales hire at Mosaic. Michael is also the founder of Let’s Humanize Finance, an interview series with FinTech entrepreneurs and innovators who are changing the way we interact with money.

Episode Notes

How is an early-stage VC a lot like Shane Battier or Andre Iguodala? When they are on the court, they make the players around them better. That’s how Michael Sidgmore sees his role as a pre-seed and seed round FinTech investor: He’s the sixth man, coming off the bench to serve as the glue that helps his team get to the next level. He may not be in the trenches on a daily basis, but when he does get in the game, good things happen.

Michael is a Partner at Broadhaven Ventures, an independent investment bank serving the financial services industry. In his role at Broadhaven, Michael focuses on sourcing, investing and managing investments in early-stage FinTech startups. Prior to joining the firm, he served as a pre-product employee at iCapital Network and the first sales hire at Mosaic. Michael is also the founder of Let’s Humanize Finance, an interview series with FinTech entrepreneurs and innovators who are changing the way we interact with money.

Today, Michael joins us to share his unique path from semi-pro soccer player to Broadhaven Ventures, explaining how reading Leaving Microsoft to Change the World changed his life. He offers insight around how to measure impact in a nonprofit organization and how FinTech companies can make both a profit and an impact. Michael also gives us his take on the evolution of FinTech and the way cryptocurrency might fit into the larger picture of financial services in general. Listen in for Michael’s top four opportunities in the FinTech space and learn how he sees the role of an early-stage VC as that of the sixth man.

Topics Covered

Michael’s path from semi-pro soccer to Broadhaven Ventures
Interned for Room to Read during accidental gap year in UK
Transfer from Middlebury to London School of Economics
Work at Goldman Sachs before shift to FinTech startups

The key to running a successful conference
Engaging content (e.g.: Shark Tank for trade ideas)
Interesting people

How to measure impact as a nonprofit organization
KPIs specific to goals (i.e.: # of students with library access)
View donors as investors expecting social return

Michael’s definition of success in business
Do something you love, doesn’t feel like work
Help entrepreneurs realize dreams + make impact

FinTech’s ability to make a profit AND an impact
Access to credit for unbanked individuals, small businesses
Facilitate growth of middle class in emerging markets

Michael’s take on the evolution of FinTech
From $3B of VC in 2012 to $16B in 2016
Challenge for disruptors to create standalone brand
Bring enabling tech to traditional financial institutions

Michael’s insight around the opportunities in FinTech
Emerging markets (Asia, Latin America)
Big brands become FinTech companies
Banking the SMB
Collaborations (e.g.: Goldman + Apple)

Michael’s thoughts on how crypto fits into the FinTech picture
Irony of centralized organizations in decentralized framework
Interesting use cases in tokenization of assets

How Michael sees his role as an early-stage VC
Serve as sixth man (critical player off bench)
Get companies ready to graduate to series A

How Broadhaven is building out their team
Institutionalizing processes
Adding skill sets like culture, HR

Connect with Michael

Broadhaven Ventures https://www.broadhaven.com/

Broadhaven on LinkedIn https://www.linkedin.com/company/broadhaven/

Michael on LinkedIn https://www.linkedin.com/in/michaelsidgmore/

Michael on Twitter https://twitter.com/michaelsidgmore

Let’s Humanize Finance http://www.letshumanizefinance.com/

Resources

Leaving Microsoft to Change the World by John Wood http://www.leavingmicrosoftbook.com/

Room to Read https://www.roomtoread.org/

LSE Alternative Investments Conference https://www.lseaic.com/

David Rubenstein at The Carlyle Group https://www.carlyle.com/about-carlyle/team/david-m-rubenstein

Silver Lake https://www.silverlake.com/

Glenn Hutchins http://www.hamiltonproject.org/people/glenn_h._hutchins

Man Group https://www.man.com/

Lord Stanley Fink https://www.crunchbase.com/person/stanley-fink#section-overview

Mosaic https://www.joinmosaic.com/

iCapital https://www.icapitalnetwork.com/

QED Investors https://qedinvestors.com/

Gusto https://gusto.com/

Chime https://www.chimebank.com/

MoneyLion https://www.moneylion.com/

SoFi https://www.sofi.com/

Michael Gilroy https://www.canaan.com/team/michael-gilroy

Canaan Partners https://www.canaan.com/

ScaleFactor https://scalefactor.com/

Greg Phillips https://www.broadhaven.com/greg-phillips

Guissu Raafat Baier https://www.linkedin.com/in/guissu/

The Third Door by Alex Banayan https://thirddoorbook.com/

Keith Rabois on Boost VC EP090 https://theboostvcpodcast.simplecast.fm/rabois

Connect with Boost VC

Boost VC Website https://www.boost.vc/

Boost VC on Facebook https://www.facebook.com/boostvc/

Boost VC on Twitter https://twitter.com/BoostVC