Investing in Global Trade
Most know BTV as a fintech fund. So how does global trade fit in?
For us, fintech is any technology that touches (catalyzes, protects, underwrites...) exchange of value.
Exchange of value = commerce, which is facilitated by global trade!
At @btv_vc, we're excited about companies building for global trade.
Opportunities in this space take various forms from b2b payments (i.e. workflows), to trade financing, cross-border payments infra and b2b marketplaces.
Publishing some thoughts recently shared with our LPs.
Most know @btv_vc as a fintech fund. So how does global trade fit in?
For us, fintech is any technology that touches (catalyzes, protects, underwrites...) exchange of value.
Exchange of value = commerce, which is facilitated by global trade!
A VC cliche is to invest in fragmented markets with massive TAM. Global trade fits this cliche pretty well.
But this is a lazy generalization, so let's dig deeper.
Keeping it simple, a typical trade transaction deals with friction in movement of goods & informational asymmetry causing lack of trust, both of which lead to setting up complex payment terms.
And in this interconnected world that we live in, a significant portion of trade is cross border. This affects compliance, costs, and financial operations (like FX + treasury).
As a result, stakeholders across these supply chains are challenged with:
- Coordination & Information alignment
- Compliance
- (Lack of) trade financing
- (Lack of) contextual + alternative underwriting
- Financial operations & planning
- Procurement & vendor/client management
In our mind, fintech's opportunity = Saas + banking/payment infrastructure + capital, to offer products that:
- Facilitate & ensure trust across vested parties
- Streamline workflows across compliance, bizops, vendor/client management...
- Serve as a financial command center
Here are some of our more recent investments in the space:
- Fideo
- Red Sky
- BRKZ
But much of our portfolio directly/indirectly embeds into global trade too!
If you're a startup building in the space or a founder looking to start up, here's (some of) what we look for:
- Software + fintech bundled from day 1
- Industry verticalization
- Fragmented ~$100Bn+ GMV industries
Want to tell us more about what you're building? Or know someone you think we should meet? DM or email me (nihar@btv.vc)!
