02:00:27 · John Coogan, Micky Malka
[02:00:27] S1: Yeah. Yeah. Yeah. How how do you actually build that trust and build that brand in some of those markets? Is it different in Brazil than other countries? Are you talking about the the feel of the product or actually just the marketing and telling people what your brand stands for? Or does it infuse through the interactions with bank teller in the virtual environment probably? [02:00:50] S8: I think it's all of the above. It's the little things. [02:00:53] S1: Mhmm. [02:00:53] S8: It's really telling a story in a way that people believe and consistently see that you're doing that. Mhmm. And everyone every company does it in a different way. So there was a a story I remember from Nubank in Brazil when we backed them super early. You know, in Sao Paulo, they are 18,000,000 people, but there's I think there's, like, 4,000,000 dogs. It's almost like one dog for and so whenever they saw that you you had a transaction on your credit card for a a a vet, you you they will send you cookies to your home. [02:01:30] S1: Wow. [02:01:31] S8: Right? Because it meant that your dog was sick or something was happening. So imagine but those are little things that you do that with consistency. And if the message is we care about you and we're paying attention to what's going on in your life, that's how you build that trust. It's a bunch of little details. There's never a big thing, but it has to be genuine. And you can see when when CEOs or teams are not genuine, you can see it 10 miles away.
02:01:31 · Micky Malka, Jordi Hays
[02:01:31] S8: Right? Because it meant that your dog was sick or something was happening. So imagine but those are little things that you do that with consistency. And if the message is we care about you and we're paying attention to what's going on in your life, that's how you build that trust. It's a bunch of little details. There's never a big thing, but it has to be genuine. And you can see when when CEOs or teams are not genuine, you can see it 10 miles away. [02:02:00] S0: How do you feel about so so you did the first institutional round of Coinbase and Robinhood. Correct? [02:02:06] S8: Yes. [02:02:07] S0: And did did you did you think at the time that that those companies did you have a feeling that that if they were successful they would end up ultimately competing with each other because it's not exactly head to head yet but you can imagine ten years from today these companies will just be going at it. And maybe that's just because of the trends around bundling and Fintech, Right? If you can create one product, you can add a bunch of others. If you can earn someone's trust in one category, you can expand out. But I think we're at this really interesting moment where the last ten years were about you had like, you know, traditional Fintech and you had Crypto and they were these distinct categories. But it seems that it it seems very obvious now that they will be, you know, massively overlapped in a ultimately just one category, which is money.
02:02:07 · Jordi Hays, Micky Malka
[02:02:07] S0: And did did you did you think at the time that that those companies did you have a feeling that that if they were successful they would end up ultimately competing with each other because it's not exactly head to head yet but you can imagine ten years from today these companies will just be going at it. And maybe that's just because of the trends around bundling and Fintech, Right? If you can create one product, you can add a bunch of others. If you can earn someone's trust in one category, you can expand out. But I think we're at this really interesting moment where the last ten years were about you had like, you know, traditional Fintech and you had Crypto and they were these distinct categories. But it seems that it it seems very obvious now that they will be, you know, massively overlapped in a ultimately just one category, which is money. [02:02:53] S8: Yes. So we we were the first institutional round to Coinbase and Robinhood, but also to Revolut, which is the same camp, and and also to Nubank. Yeah. Also to we were super early, and we build with MercadoLibre and MercadoPago, which is a competitor of Nubank. You know? So if you had told me back then that all these companies were gonna be competing for this, we would have never guessed it ever. And and the reality is [02:03:21] S0: Well, I'm surprised you say that because it seems like you you have a bit of a you got a secret crystal ball or something if you were gonna
02:03:21 · Jordi Hays, Micky Malka, John Coogan
[02:03:21] S0: Well, I'm surprised you say that because it seems like you you have a bit of a you got a secret crystal ball or something if you were gonna [02:03:27] S8: Well, five years ago, we told our our our LPs, our investors in our one of our investor day meetings, that the rails of crypto and and financial services were actually starting to blend, and it was gonna be indifferent. And then companies that didn't do both were gonna be completely spaced out or lost the window of chance to build. So five years ago, we started to see it, but not it wasn't obvious before that because there were different geographies and all of that, but now they're competing globally to each other. So the way I think about it is the first decade of all of this momentum was the few companies that will have the right to win. And they've earned it by building brand, by building teams, by delivering on services, by getting licenses, by doing all these things that they need to do. So now we have a, call it, 30 or 40 players worldwide that we call the compounders, the one that will deliver and compound for the next decade. Now this second decade of those 40 names or 30 names is a decade where they steal market share from every single incumbent. [02:04:33] S1: Mhmm. [02:04:33] S8: Because so far, they haven't that much. [02:04:37] S1: Yeah.
02:04:37 · John Coogan, Micky Malka, Jordi Hays
[02:04:37] S1: Yeah. [02:04:37] S8: But this decade, with AI, with crypto, with the way they're building new products, with the way they're using their own brands, with the trust they have, with the government regulators leverage they have today versus five years ago, buckle up because what's coming is gonna be really fun if you're an incumbent and really tough if you're an incumbent. [02:04:58] S0: What lessons do you think the the company, the Coinbase's, the Robinhood's, etcetera of the world learned in 2020 during in 2021 during that sort of chaotic market cycle that it it feels good and that and that many of them learned various lessons. Was also told to ask you about [02:05:20] S1: Are you talking about COVID era [02:05:22] S0: or Yeah. Just the whole like, you know, the Like Robinhood that felt like You know, the Robinhood, GameStop, saga, those moments. It feels like there was a lot of hard ones, lessons. And then we've started this new cycle, this new bubble, whatever you wanna call it. And hopefully, lot of them have taken those taken learnings from that and are are implementing it, whether it's around risk management and things like that.
02:05:22 · Jordi Hays, Micky Malka, John Coogan
[02:05:22] S0: or Yeah. Just the whole like, you know, the Like Robinhood that felt like You know, the Robinhood, GameStop, saga, those moments. It feels like there was a lot of hard ones, lessons. And then we've started this new cycle, this new bubble, whatever you wanna call it. And hopefully, lot of them have taken those taken learnings from that and are are implementing it, whether it's around risk management and things like that. [02:05:46] S8: Yeah. So I think the lessons from that time was when COVID started, most of these companies were not ready to turbocharge. And what happened during COVID, if you look back, is that you probably fast track four, five years of customers and growth into twelve months. Yeah. And none of these teams were prepared for it. Being at home, not being able to do much more, it just supercharged all of these companies. And they overhire, and they were working remote, and they didn't have capital, you know, frameworks in place because the growth was unexpected. And we remember getting a bunch of calls during that time. In the beginning, like, this is amazing. And then, like, this is getting tough, and this is gonna be problematic. And and it it can crack here or there. And when we got the phone call at three, four, five in the morning from Robinhood saying the GameStop day and what needed to be done, And we funded them in four hours, almost [02:06:42] S0: half a [02:06:43] S8: billion dollars that we didn't have, that we asked a bank to lend us to do it. [02:06:48] S1: We've all [02:06:48] S0: Called it an old favor from an old friend?