View profile

Jacob's Newsletter - Issue #12 - Time for Corporate Venmo? Opportunities in B2B Payments

Revue
 
This quarter I’ve been looking at how advancements in financial technology are changing the nature of
 

Jacob Mullins' Weekly Newsletter

June 1 · Issue #12 · View online
My weekly snapshot perspective on tech, startups, venture capital and its effects on daily life and our world.

This quarter I’ve been looking at how advancements in financial technology are changing the nature of the $2 trillion global payments ecosystem. As I’ve written previously about financial inclusion, I believe capital is the world’s universal language and I’m eager to get ahead of how and where the money is flowing to see what opportunities exist therein. I’m especially interested in payments infrastructure because it’s ubiquitous and makes for a great business.
Consumer payments is a well-worn track with robust infrastructure thanks to the likes of Visa, Mastercard, Amex and innovative challengers like Square and Stripe. But what about B2B payments, what about the trillions of dollars that flow from one company to another? Or a company to a person? Yes, Bill.com but where is corporate Venmo? Should that exist?
Comparatively, today’s corporate payments infrastructure is buried in legacy systems at the bottom of techosaurus-rexes like Fiserv, IBM, SAP, and Oracle. They are often managed in spreadsheets by number crunching controllers, good ‘ol fashioned human-power. Newish corporate payments solutions like Bill.com and Freshbooks have cropped up to attempt to solve invoicing, accounts receivable and reimbursement. But compared to user experience advances in consumer payments, it’s only a matter of time before B2B payments start to get some innovation love.
I posit there are three vectors for disruption in corporate and B2B payments:
  1. Corporate API-Banking Infrastructure: Like Plaid and Yodlee did for consumer banking infrastructure, which has enabled the growth of challenger banks like N26 and Monzo, there is an opportunity to build API-centric application infrastructure for the enterprise to connect siloed corporate financial systems. Modern Treasury is a startup in San Francisco that is taking a data and infrastructure level approach to custom payments operations, enabling web developers to easily build custom applications that will drastically improve the efficiency of corporate payments. This is also an area where trustless blockchain based solutions may be particularly apropos.
  2. Workflow-based Payments Software: Possible in a category with heavy workflow and large dollars at stake, over a long-ish period of time, I’m interested in companies that are combining workflow with payments. Two category examples of this would be in Construction and Healthcare. Construction is a process that involved many vendors who get paid over a long period of time, based on race conditions milestones that are met. It’s a complex project management task with many disparate endpoints. Rabbet, in Austin, TX, is a “construction finance platform that intelligently parses documents and connects information for frictionless transactions.” In Healthcare, a company like Health iPass is a workflow software that is “improving the patient experience from appointment to payment.” They combine workflow, patient communication and payments in one product to enable doctors to capture more revenue sooner, and patients to have a clearer view into insurance contribution and their own responsibility.
  3. Ecosystem-based Payments Networks: Not universally applicable, but some industries have unique network and ecosystem effects that enable payments to flow more easily thanks to a higher level of trust and data flow. San Francisco-based ApplePie Capital is a financing network for SMB franchise lending that is a crucial hub of information between franchise brand, entrepreneur, bank and other service providers, where they have an opportunity to capture payments flow around the ecosystem.
These are just a few examples of innovations in B2B payments, and I’m actively looking for more. If you have some thoughts on B2B payments, or know of companies building in the space, I would love to learn about them. Please reach out!

Happenings Around Shasta
Interplay Learning is creating the future of job training and simulation for skilled trades. We are excited to be a part of Interplay's Series A round via the Shasta Camera Fund !!
My colleague Natalie Sandman's commentary on "Coffee Shops, Office Space, and… the Future of Remote Work"
This Week's Gadget
Photo credit Nancy Reyes Mullins, at home
Photo credit Nancy Reyes Mullins, at home
Early review of Oculus Quest: WOW. Great graphics, incredible tracking, especially considering it’s all “inside-out” tracking with four cameras on the wireless headset, not the big external sensors. Hard to believe this is real reality. :) This makes the PC-powered Vive and Oculus incredibly onerous, almost laughable. First game I played, Beat Saber, of course. More to come….
All About the Cameras
The Camera as the App Layer – 500ish Words - by my man M.G. Siegler
Cameras Are Still So Dumb! And M.G. Wrote The Post For Me. - by my (other) man Hunter Walk
Uber Graphic
An interesting graphical representation of Uber’s valuation in relation to where it’s investors got in. Certainly some commentary, and learnings, here about runaway growth rounds…….
Just Incredible...
This is one of the greatest examples of philanthropy, giving and leadership in my lifetime. "Morehouse College Graduates’ Student Loans to Be Paid Off by Billionaire"
"A BA billboard in London which interacts with a passing plane & the screen gives info on the flight. Pretty cool use of tech.…" by Chet Faliszek on Twitter
Keep in Touch
I invest in Emerging Platforms at Shasta Ventures, specifically technologies innovating on our financial world (the universal language of $$$) and innovations that bridge the digital & physical worlds including Applied Computer Vision, Perception, Robotics, AR/VR, Esports, and Blockchain.
Would love to hear your thoughts, feedback or insights. Get in touch at jacob at shastaventures dot com. Or find me on:
Twitter: @jacob
Did you enjoy this issue?
If you don't want these updates anymore, please unsubscribe here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue