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Alex Konrad is a Senior Editor at Forbes, where he covers venture capital and startups. Alex also edits and curates the famous Midas List and The Forbes 30 Under 30 VC category. He is a central figure in the world of Venture Capital, Tech, and Fintech and I suspect you’ll enjoy hearing what he has to say.
In this episode, we discuss:
A behind-the-scenes look of the Forbes Midas List and the growing influence of FinTech in it
“FinTech and payments are very global and It's a category where winning in local markets is really important. So, I actually would say that the biggest drivers in FinTech were probably more global.”
The Forbes Midas List, launched in 2000 by Forbes, is an annual ranking that honors 100 of the top venture capitalists worldwide. Alex has been curating the list for over a decade and he took us behind the scenes on how exactly does their data-driven selection process and methodology work. Something I found interesting is that they emphasize real exits such as IPOs and acquisitions over private valuations to ensure an accurate and unbiased assessment of success. The model, refined over more than two decades, incorporates factors like recency of valuations to account for market fluctuations and maintain the list's integrity.
Fintech has significantly influenced the latest Midas List, with companies like Nubank, Revolut, Checkout, and Stripe maturing and achieving substantial success. These fintech giants are not only testament of the sector’s potential, but also show us that some of the most successful fintech companies come from outside Silicon Valley.
The impact and adoption of AI in the financial industry
AI's integration into the tech industry is becoming increasingly undeniable and AI LLM technology is starting to percolate across most tech companies. Firms like OpenAI, Scale AI, and Anthropic are not only generating significant revenue but also commanding substantial valuations. That said, the industry is still holding its breath for a major liquidity event, such as a landmark IPO or acquisition, to truly cement AI's impact – one strong candidate for the first AI IPO is Databricks and Alex is paying close attention.
Evolution and future of the VC industry
“Sometimes, the best articles I write, nobody is fully happy with them.”
Over the last two decades, the venture capital industry has evolved from a market dominated by a few universally recognized firms to a more specialized and complex ecosystem. Today, the best firms vary significantly depending on the sector, whether it's defense, healthcare, or fintech, with several specialized funds and experts driving innovation and investment. This shift means that being considered a leader in a particular area now requires a deeper, more nuanced expertise and a visible commitment to that niche, making the landscape more competitive and dynamic.
In addition, the rise of personal branding and community engagement among VCs reflects the industry's transformation. Unlike a decade ago, emerging managers and even established investors are leveraging platforms like podcasts, blogs, and social media to connect with their communities and demonstrate their knowledge and passion for specific sectors. This trend is becoming essential for attracting top founders, as they seek investors who not only bring capital but also a deep understanding and commitment to their industry. As a result, future top investors are expected to have a strong public presence, engaging with their communities through various media to maintain their leadership status.
The role and influence of media in tech, curating the 30 Under 30… and a lot more!
"So much of the tech industry is based on reputation, and if someone is willing to lie and basically risk everything, they can get away with it for a while. If they lied to their investors, their customers, their staff, the media… it WILL come get back to them."
Alex is in charge of curating the Forbes 30 Under 30 VC list. Over the years, the list has evolved into a collection of sector-specific lists, making it fairer by allowing individuals to be judged within their respective fields. This approach, however, has led to criticism for featuring more than just 30 people. Konrad defends the methodology, reminding us of the importance of industry-specific judging panels composed of leaders like Sam Altman, Garry Tan, and Sequoia's top investors, ensuring a robust selection process despite inevitable erros due to the early stage of many honorees' careers.
When it comes to the criticism of high-profile failures among 30 Under 30 alumni by highlighting the broader industry's shared responsibility, he points out that if major institutions like JPMorgan can be misled, it's unrealistic to expect a list curated by reporters to avoid all mistakes. The 30 Under 30 list aims to capture excitement and innovation at a specific moment, celebrating promising talents from diverse backgrounds and some flameouts are inevitable.
Journalist Recommendations
As a journalist himself, Alex is a fan of the work of the following reporters:
Matt Levine (Bloomberg) - Alex enjoys reading Levine's work because he provides a more opinion-based, humorous perspective, which he finds to be a "breath of fresh air" when covering big stories in the tech and finance world.
Kenric Kai (Reuters) - Kenric Kai: Kenric was his "favorite AI reporter" at Forbes, and he is looking forward to seeing Kai's work at his new role at Reuters.
Ellen Huet (Bloomberg) - Alex enjoys the narrative podcast series that Ellen does at Bloomberg, as he appreciates the ability to "settle in with a story" and get a deeper, more immersive experience compared to traditional news reporting.
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