Entrepreneurial mindset: Fintech expert Alex Rampell on investment strategies and the future of financial services

Alex Rampell, General Partner of top venture capital firm Andreessen Horowitz, has a long history in fintech, having co-founded six companies in his career. Alex joins us on the Walker Webcast to discuss his entrepreneurial journey, the importance of taking risks, his approach to investments, and much more. 

On today’s episode, Willy welcomes Alex Rampell, General Partner at top venture capital firm, Andreessen Horowitz. Over his impressive career, Alex has led Andreessen’s investments in several startups that have gone public or have been acquired, including Opendoor, Plaid, and Revival. Prior to joining Andreessen Horowitz, Alex co-founded several companies, including FraudEliminator, Point, TrialPay, TXN, and Yub. He holds a BA in applied mathematics and computer science from Harvard University and was named Institutional Investor’s 2017 Fintech Finance 40 in 2018 and FinTech Finance 35 in 2016. Additionally, Alex serves on the board of several companies, including Branch and Divvy.

While attending Harvard, Alex discovered his true passion for entrepreneurship. He ended up convincing the Dean to eliminate the longstanding rule that prohibited students from running businesses in their dorm rooms. Most people thought Alex was crazy for deciding to pursue his entrepreneurial career straight out of college instead of landing a secure job at a prestigious company like his peers. Today, he loves seeing young graduates taking similar risks. He firmly believes that thinking outside of the box moves the ladder for the world much more than simply settling for an entry-level job.

The conversation turns to specific investment deals Alex has won while at Andreessen Horowitz. Alex describes his investment strategies and what he looks for in a company. He believes that judging a company by its present capabilities is a great losing strategy. Instead, you should focus on potential. Having a realistic understanding of probabilities and execution is highly important for investors and entrepreneurs alike. 

Alex and Willy then discuss the profitability of the software industry, which has high margins since the process of selling licenses for coding is infinitely replicable. This is similar to financial services products. The two then shift the conversation to cryptocurrency and blockchain, and wrap up by talking about iBuying, noting that while it is dangerous, it can be very profitable if done correctly. 

Links:

Learn more about Alex Rampell. 
Check out Walter & Dunlop’s website.