Alex Lazarow, a respected venture capitalist and writer, has introduced the term “Fintech Families”, referring to a group of skilled professionals from reputable organizations with the objective to launch and operate significant startups, reminiscent of the famous “PayPal Mafia.”
The “Fintech Families”, like Musk, Hoffman, Thiel, and Levchin of the “PayPal Mafia”, are spearheading substantial technological and financial advancements. These groups of groundbreaking individuals are utilising their comprehensive industry knowledge and strategic insights in the dynamic fintech ecosystem.
Lazarow highlights companies such as Mercado Libre in Latin America and Aramex in the Middle East, showcasing the power of group efforts in the fintech field. Research from Gilgamesh Ventures and the Wharton School of Business supports his argument, revealing new waves of fintech companies in emerging markets that are challenging existing financial institutions and offering innovative services.
Among these companies are “Fintech Families” like Square, Stripe, and Robinhood, which along with Latin American ventures like Mercado Libre and Nubank, have created around 3,000 new creator positions worldwide, generating revenues over $250 million.
Fintech Families driving startup growth
These companies have dramatically transformed the financial sector offering digital accessibility, user-friendly interfaces, and personalised customer experiences.
The majority of these “Fintech Families” founders have backgrounds in product development and engineering, with strategy and business operations being additional common roles. This varied experience across different sectors seems to have armed these founders with unique insights to navigate the fintech landscape successfully.
The research highlights the role of strong branding strategies in the success of a Fintech Family. Companies with robust brand identities and capable workforces are better positioned to attract top talent, promote future founders and successfully compete in the dynamic fintech ecosystem.
The study also points out the potential benefits of significant liquidity events, like sizable secondary tenders or notable IPOs. Some well-known firms like Canada’s Shopify and Romania’s UiPath did not significantly feature in the Fintech Families list, underscoring the vital role investors and entrepreneurs play in connecting with top-tier talent in emerging enterprises.
