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Highlights from the FinTech O2O keynote speech
FinTech
<p>More than 200 people gathered in Hong Kong for the inaugural Fintech Initiative meet-up at Cyberport. Chris Dark, President International of the fintech juggernaut C2FO, gave the keynote speech. The initiative aims to nurture the fintech ecosystem in Hong Kong and was co-sponosred by NexChange, publisherof this app, and Cyberport.</p> <p>Highlights:</p> <p>Chris Dark ,Pres Int'l, C2FO: "You have to take risks - the real disrupters are the risktakers" #fintech #fintechO2O<br /> — NexChange (@NexChanger) September 22, 2015</p> <p>"Rule number 1 for #startups is to focus" -Chris Dark from @C2FO #fintechO2O @NexChanger @cyberport_hk pic.twitter.com/361UKaHVLp — W Hub (@WHubhk) September 22, 2015</p> <p>"Do things 10 times better than everyone, otherwise, go home" - Chris Dark, CEO of @C2FO at #FinTechO2O pic.twitter.com/pWzv9gUO4n</p> <p>— Nest.vc (@NestIdeas) September 22, 2015</p> <p>Chris Dark, Pres Int'l, C2FO: "Banking is not going away, they are not the enemy, and you can work with them" #Fintech #FintechO2Oup — NexChange (@NexChanger) September 22, 2015</p>
Fintech expected to pull in big bucks even as stock market collapses
FinTech
<p>The stock market may be in a sad, dark place right now, but fintech is riding high.</p> <p>In the week ending August 20, 25 fintech companies raised $1.63 billion, reports Finovate. Lending company Sofi was the biggest winner, bringing in a whopping $1 billion and edging toward a $4 billion valuation. Avant and Dianrong were runners up, raising $340 million and $220 million respectively. And fintech doesn't want to slow down any time soon.</p> <p>"Fintech is such a big market, and it's still so early in terms of some of these companies gaining traction, there's still room to grow," says Matthew Wong, research and data analytics at venture capital database CB Insights. Startups in general don't seem to be slowing down, and fintech is one of the hottest areas right now. Lending companies like Sofi, payments, and personal wealth management are all popular, says Wong. And investors especially love technology that appeals to millennials, such as easy apps. Funding is expected to continue to be strong for the rest of the year. Andreessen Horowitz's recent hire of a young, startup-founding partner is a prime example of where venture capitalists are looking in the future.</p> <p>Mobile payment provider Square moving to IPO will be a good lightening rod for the industry, and one that everyone will be watching, says Wong. If the IPO isn't well received, it may show that valuations for fintech are too high.</p> <p>Fintech firms are taking on the big banks and each other, but there's limited direct competition that is seen in other industries. Fintech firms typically carve out a niche, focusing on wealth management for instance, and not trying to be a giant bank. And the banks aren't stupid. Goldman Sachs has jumped fully into investing in fintech, particularly data driven companies like Motif Investing. Other banks, including JPMorgan, are close behind, looking at fintech opportunities to enhance their own businesses and show them what competition is coming. "We are seeing more banks invest now in these companies and trying to see what this technology is looking like," says Wong.<br /> Photo: Joe Ross</p>
Culture: An essential ingredient in success. Just ask any startup. Or Amazon
FinTech
<p>"Nearly every person I worked with, I saw cry at their desk." -- Bob Olson, former Amazon employee who worked in books marketing</p> <p>The New York Times<br /> Anyone who has ever worked in an office knows this for sure: culture matters. Over the weekend, The New York Times published a major expose on the culture at Amazon, depicting a workplace pushing employees to achieve unreasonable goals. The piece garnered 4,264 comments (and counting). As is the way of the digital world, the story has spawned a mini-publishing ecosystem. Amazon employee Nick Ciubotariu published a post on LinkedIn dismissing the Times story as half-truths and nonsense. That in turn prompted an assessment by Inc.: Who is right? Nick or the Times writers?</p> <p>And then what should happen to land in my inbox this afternoon? "The 3 Ways Culture Enables Startups To Scale," by Tomasz Tunguz, a partner at venture capital firm Redpoint (which has funded one of my favorite fintech companies, Expensify). To someone betting their money on a new venture, culture is not just a point of philosophical debate. It is a guiding light, a window into the likelihood of success.</p> <p>Tunguz explains that culture influences who a company is more likely to hire and daily decisions as well as the direction of a business. Tunguz writes:<br /> Contrast Google’s notion “Fast is better than slow” with Apple’s “Don’t ship until it’s perfect.” Neither philosophy is superior to the other, but they will attract different types of people. One encourages risks, while the other champions craftmanship. Google’s culture works for the web, where code pushes are immediate. Apple’s fosters better results in hardware where small mistakes can cost tens or hundreds of millions of dollars. Each philosophy works to maximize the advantages of the company given their constraints.<br /> Can you summarize your culture in one sentence? Do you know its strengths and weaknesses? At NexChange collaboration is a key tenet of our workplace. Let us know in the comments the philosophy drives your business.<br /> Photo: Dennis Skley</p>
Goldman Sachs is recruiting with Snapchat
Lifestyle, 4:01
<p>Goldman Sachs is looking to scoop up the next generation of talent by getting down with the kids and taking its recruitment drive onto Snapchat, the popular social network for millennials.</p> <p>Reuters reports that Goldman will uses Snapchat - a popular social app for temporary pics and nude selfies -  to fire out a series of ads within its Campus Story function, a curated platform for college-related content.</p> <p>The ads - which do not contain any nudity - makes a call out for  a "Campus Environmental Leader", a "Youth Sports Coach", or a "Crowd Funding Champion," and provides a link to gs.com/campus.</p> <p> Apparently, Goldman is reacting to early signs that graduates are becoming less interested in pursuing a career in finance. </p> <p>This isn’t the first attempt by the investment banking giant to a appeal to young demographic. In a bid to shake off its all work, no play image, Goldman recently told its summer interns to make sure they leave the offices between midnight and 7am during the week, because, y’know dude, YOLO.<br /> Photo: AdamPrzezdziek</p>
Hong Kong hosts closed-door hedge fund fight club
Lifestyle, 4:01
<p>Bankers and traders in Hong Kong competed in the Hedge Fund Fight Nite, an annual event where financial professionals switch office attire for boxing gloves and raise $100,000 for charity, reports FinBuzz.</p> <p>Despite averaging 60+ hour work weeks, 16 boxers (14 men and two women), trained 3-4 times a week for the last five months at the JAB mixed martial arts studio to prepare for the big night, which took place at the Hong Kong Observation Wheel on September 10.</p> <p>EY, BNY Mellon, LexisNexis, and several other professionals from hedge fund and asset management firms wrapped their fists in tape, tied up their boxing gloves and threw punches until they defeated their opponents, all in the name of charity.</p> <p>The black-tie dinner event was filled with spectators seated at tables eager to see familiar financial faces in the boxing ring. A live charity auction was held, and over $100,000 (HK$1 million) was raised for Beam International Foundation, Operation Breakthrough and the Sovereign Art Foundation.</p> <p>In its eighth year, the event continues to attract experienced boxers as well as complete novices working in the Hong Kong financial scene.</p> <p>Though the event was by no measure a typical charity ball, it offered guests an exciting and unique night out, and after the 6 rounds of fighting, the boxers were able to mingle and relax.</p> <p>Participant list:</p> <p>Danny Scinto – Foreign Exchange Trader at BFAM Partners<br /> Megan Schmalzried – Senior Consultant at EY<br /> Ryan Lawson – Associate Director at Sovereign Trust (Hong Kong) Limited<br /> Franc Liu – Analyst at Cathay Conning Asset Management<br /> Alex Oxford LexisNexis Risk Solutions<br /> Will Jeffries – Vice President at BNY Mellon<br /> Stephen Friel – Marketing Director at Asia Frontier Capital Limited<br /> Andries Blom – Senior Trader at Eclipse Options<br /> Stuart Denton – Chief Operating Officer at VoidBridge Limited<br /> Tanya Menzel- Director Training &amp; Development at Jigsaw</p> <p>This story first appeared in FizzBuzz.<br /> Photo: melissa jonas</p>
Do you understand the difference between online banking and digital banking?
FinTech
<p>Fidor Bank is at the cutting edge of digital, social banking. Frank Schwab, CEO of Fidor TecS, offers these insights into the key differences between online banking and true digital finance. What do you think are the key differences?</p> <p>Some thoughts on Traditional (Online) Banking versus Digital Banking. - More to come soon … pic.twitter.com/JQZWbjaoGy<br /> — Frank Schwab (@FrankJSchwab) August 26, 2015<br /> Photo: ©iStock.com/hakkiarslan</p>
Daily Scan: A-shares retrace gains; H-shares take a beating
Capital Markets
<p>Updated throughout the day</p> <p>September 22</p> <p>Good evening everyone. After getting bruised and battered post Fed, Asian equities were mostly in recovery mode today with the Shanghai Composite climbing 0.92%, the ASX spiking 0.74%, and the Hang Seng Index bouncing 0.18%. Here’s how the rest are doing:</p> <p> SZCOMP: +0.71%<br /> Hang Seng Index: +0.18%<br /> Hang Seng China Enterprises Index: -0.65%<br /> TAIEX: +0.71%<br /> Straits Times Index: -0.48%</p> <p>Things were a lot more interesting over in the currency markets as the U.S. dollar bounced against most of its emerging market currency pairs but seemingly lost ground against some of the commodity currencies. Among the hardest hit were the Brazilian real which lost over 1%, the Taiwan dollar which lost 0.8%, and the Korean won which lost 0.38%. Here's what else you need to know:</p> <p>South Korea to probe VW, Audi diesel car emissions. The scandal engulfing Volkswagen AG,  which has admitted cheating diesel vehicle emissions tests in the US, has spread east. South Korea said it would investigate three of the maker's diesel models. Reuters<br /> Gunmen kidnap tourists and local woman in Philippines. Two Canadians, a Norwegian and a local woman have been kidnapped from a tourist resort in the south. An army spokesman said they were taken by gunmen late on Monday from the Holiday Oceanview resort on Samal Island. BBC<br /> Russia to deploy 2,000 in Syria air base mission’s ‘first phase’. The military staff will be sent to a new air base near the Syrian port city of Latakia, signalling the scale of Moscow’s involvement in the war-torn country. The deployment “forms the first phase of the mission there”, according to an adviser on Syria policy in Moscow. Financial Times (paywall)<br /> Dollar gains on rate hike hopes. The dollar advanced against the euro and other leading currencies on Monday on comments from US central bankers who continue to eye a 2015 interest rate increase. There are two remaining Fed policy meetings scheduled this year, in late October and mid-December. Channel News Asia<br /> China protests by Fanya Metal Exchange investors. Hundreds of Chinese mineral investors have protested in Beijing, alleging they have been defrauded. They claim to have lost money after investing in the Fanya Metal Exchange in the city of Kunming. Hundreds of thousands of people have invested billions in products offered by the exchange as the values of rare metals rose in recent years. BBC<br /> Malaysia PM in US corruption probe. A federal grand jury is looking in allegations of corruption involving the Malaysian prime minister, Najib Razak, and people close to him. The embattled politician is already facing mounting political turmoil and a parade of inquiries at home and abroad into a sovereign wealth fund that he oversees. New York Times</p> <p>'Putin's banker' files $10 billion claim against Russia. Sergei Pugachev, a tycoon once dubbed "Putin's banker" because of his influence in the Kremlin, has filed a</p>
Raising money? There's a new entry fund-raising step -- 'pre-seeding'
Venture Capital
<p>After family and friends, hopeful entrepreneurs would go to seed funds to raise money. There's a new step now in the fundraising process. It's called "pre-seed."  Sarah Lacy writes in Pando.com (paywall):<br /> Welcome to the messy, inevitable collision of four trends: The series A crunch, bigger rounds later in a company’s life demanding higher pro-ratas, the rise and success of institutional seed rounds over the last 5+ years, and the increasing prices of building a company in San Francisco.</p> <p>Simply put: “Seed” is no longer seed. Pre-seed is seed. And even that’s not the earliest round: There’s friends and family before that. “Series A is actually the fourth round of funding,” says Manu Kumar, of K9 ventures, the best known pre-seed fund. “Before that there is seed, then before that there is pre-seed and then before that there is friends and family. We are the first institution in, but typically we are the second money.”<br /> Photo: Hartwig HKD</p>
HK billionaire Li Ka-shing's tech fund is Israel’s biggest foreign investor for upstarts
Venture Capital
<p>Hong Kong billionaire Li Ka-shing’s Horizons Ventures Ltd, which invests in technology companies such as Facebook, Slack and Spotify, is the biggest source of foreign investment for a number of tech startups in Israel.</p> <p>Citing data from market tracker IVC Research Center, the WSJ says Horizons has invested in at least 28 tech startups in Israel including Corephonotics, designer of dual-lens system for mobile-phone cameras, and Kaiima, a seed-technology company. In fact, startups from Israel now accounts for more than a third of the tech venture-capital fund’s more than 60 portfolio of startups, it says.</p> <p>The latest information comes as no surprise as Li, ranked the second richest man in Asia according to Bloomberg, has been aggressively expanding his empire all over the world. Just this week, Li’s Hutchison Whampoa sealed a deal with Spain’s Telefonica to acquire its British mobile phone unit O2 for 10.25 billion pounds (US$15.3 billion).</p> <p>Hutchison has been active in Israel way ahead of Horizon. Hutchison has established its presence in the country for more than a decade while Horizon, the first major Asian investor to put up money in Israeli tech companies, only did so in 2011, the WSJ says.</p> <p>Hutchison owns stakes in Partner Communications, Israel’s No.2 mobile-phone company, and in SDL Desalination, a water company, the report says.<br /> Photo: Ron Shoshani</p>
Barclay hedge fund index drops 2.45% in August; emerging markets off 10.46% in past 3 months
Hedge Funds
<p>Here's a big whoopee: Hedge funds were down only 2.45% in August compared to a drop of 6.26%  for the S&amp;P 500. Of course, most broad stock market investors weren't paying huge upfront fees.</p> <p>Hedgies took smaller losses than the MSCI emerging markets index. In August the Barclay EM index fell 5.39% vs 9.04% for the MSCI EM index. In the past three months, the MSCI EM index tumbled an impressive 17.55% vs 10.46% for the funds in the Barclay universe.</p> <p>The Barclay Hedge Fund Index compiled by BarclayHedge is hanging on by its nails to a gain for the year, up 0.23%. Here's what the data collector had to say:<br /> “A surprise currency devaluation by the People’s Bank of China on August 11 was interpreted by investors as an indication of a weakening economy, and sparked a global sell-off of risk assets,” says Sol Waksman, founder and president of BarclayHedge.</p> <p>Fifteen of Barclay’s 18 hedge fund indices had losses in August. The Emerging Markets Index dropped 5.39%, its largest loss since May of 2012 when it dropped 5.39%. Emerging Markets have fallen 10.46% in the past three months.</p> <p>“Emerging markets were hit especially hard as concerns of a global slowdown provoked fears of contagion and triggered sell-offs in commodities as well as Asian currencies, credits, and equities," says Waksman.</p> <p>Healthcare &amp; Biotechnology lost 4.38% in August, Distressed Securities fell 4.28%, and the Equity Long Bias Index was down 3.37%.</p> <p>The Equity Short Bias Index was the big winner in August, with an 8.75% gain. Equity Market Neutral was up 0.42%, and Fixed Income Arbitrage added 0.12%.</p> <p>At the end of August, the Healthcare &amp; Biotechnology Index is up 9.96% for the year, Pacific Rim Equities have gained 5.19%, Merger Arbitrage is up 4.74%, and European Equites have gained 4.39%.</p> <p>The Distressed Securities Index has lost 5.63% year to date, Emerging Markets are down 3.15%. and the Event Driven Index has lost 0.53%.</p> <p>The Barclay Fund of Funds Index lost 2.10% in August, but is still up 0.92% in 2015.<br /> Photo: SteFou </p>