Episode 20 - Thomas Perret - Revolutionizing Personal Investment
During school, worked two different internships that helped provides ideas and inspiration for Mon Petit Placement
Saw the need for diversity of investments but also need to educate younger people
Gamifying investing using technology could have better results for young investors
Target audience wants more transparency, less black box approach
Biggest obstacle so far has been engaging with large corporates, who are still learning how to work with startups. It’s a learning process!
Moving forward, eyeing green and water investments, which are of great interest
EU MiFid II laws will help to unify banking regulation across countries
Thomas comes from a financial and statistics background. The banking world gave him insight into the world of investing and why it made a lot more sense than letting money sit in a simple savings account, where it wouldn’t earn much interest.
Thomas also worked for a startup that was doing interesting things but failed, which taught him other lessons. The idea was good but you need more than just a good idea to be successful. Also, failure is not the end of the world provided you take a step back and look at what happened. There’s a lot of value in learning from mistakes.
In addition, many of Thomas’s friends and family heard him talk about his work in finance, but they really didn’t know that much about the specifics. They viewed the world of investment as risky - which it can be - but after talking about the risk/reward and educating them, he saw the potential in creating a fintech solution.
His goal was to help educate young investors so they could diversify their holdings and do better than the sub-inflation returns of traditional savings accounts. By democratizing the system, where higher returns were more likely, he could entice young investors and also bring benefits to old fashioned banks.
His biggest challenge so far will be a familiar story for many startups: as we’ve heard from others, including Ethan Pierse, today’s big corporates need to take innovation and engagement with startups very seriously if they want to be as influential tomorrow.
Episode 18 - Florian Bercault - Estimating Equity
Developed an interest in new kinds of investments while in school
Started in crowdfunding world, saw a need to help identify new businesses for investment & startups needed help raising money
Estimeo is a platform that brings together investors and startups
Data is collected in six areas, then analyzed using machine learning and AI, which provides a score out of 100
Credibility is one of the major challenges today, so Estimeo continuously works on the algorithm and building the brand
Starting first in France but building a global platform to help change investor biases
The world of finance has not always been known as a bastion of modernity, but just as startups have disrupted other industries, the world of finance is seeing rapid change thanks to progressive startups such as Estimeo. Many fintech startups are located in London, but for many reasons, including Brexit and increased demand, France is seeing high growth in this sector.
Coming from the world of crowdfunding, co-founder Florian Bercault saw a need from both investors and startups for a better system. Private investors often struggled to have good data on potential startups, and startups who offered innovative ideas struggled to connect with the right investors. Estimeo saw the market need, zipped past the old-fashioned options, and instead created a modern, digital platform that could be used by startups and investors.
As Florian explains, the model of investing in France was behind other markets and this poor structure created many challenges for all parties involved. By collecting information based on six data points, Estimeo can score startups and help investors assess risk. Rather than choosing startups based on the school the founders attended, this model is based in data, so investors can evaluate startups on a more reasonable and fair basis.
Startups can also engage with Estimeo to get scored so they can see which parts of their business are strong and which areas need improvement. This puts startups in a better position for raising funds, while also providing investors with a holistic image of the startup.
It’s not an easy process, and Estimeo will continue to fine tune their model through data analysis, but this is a really interesting solution to the complicated process of fundraising. If you are building a startup, having at least a discussion with Estimeo is an important step to take. Florian and his team can explain more how they can help with your specific situation, but having more knowledge about your possibilities and options is always a good position to be in.