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In this episode, I sit down with Latif Peracha, General Partner at M13, a venture capital firm with over $900M of assets under management, focused on enabling technologies that will power the future of consumer behavior.
Latif is in charge of the investing strategy for M13 and leads the Web3 and fintech verticals, with investments in companies like Rho, Lightning Labs, Solana, Nori, Delphia and many more.
Previously, he was a Managing Director at Virgin Group where he led investing in the Americas and worked directly with Richard Branson.
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In this episode, we discuss:
Investing in the future of money and how companies at the intersection of financial services and web3 are modernizing established markets, while building industries of the future
“We look for two major things. First, are teams building software that can scale with a clear market in mind? That market can be an established one like medium-sized companies in the US. Or it can be an emerging market, like web3 developers. And also, we look for teams who are predominantly building their own infrastructure.”
I found it interesting that not only is M13 looking for companies building software that can scale rapidly in specific markets, but they also have a preference for teams who build their own infrastructure rather than relying on partner models. This point of view challenges the growing vertical of fintech as a service, where the central thesis is to provide technology that enables non-financial firms to offer financial services.
How M13 analyzes the long-term potential of a business and looks for visionary leaders in industries with significant tailwinds when making investment decisions
“The frameworks that I use to make an investment are both qualitative and quantitative. They're both left brain and right brain. And that's why I think VC is such an interesting market, because you can't just look at a spreadsheet, with a TAM analysis, and say that’s where you should make an investment.”
Latif uses both qualitative and quantitative methods to make investment decisions. He looks for market penetrating investments, where there is a large established market that is ripe for disruption, but also for market expanding investments, where he believes a market has the potential to grow significantly in the future. There’s opportunity in both models and M13 is particularly focused on FinTech, web3/crypto, and digital health.
M13 remains bullish on crypto, but it’s gonna take courage for investors to continue backing companies in the category through uncertainty and volatility
“There needs to be much better US regulation, so that companies don't have to go offshore and be based in the Bahamas. And, secondly, I think there needs to be just better governance.”
What Latif learned working with Richard Branson and whether every entrepreneur should aspire to be like Richard… and a lot more!
“[Richard Branson] He's tremendously optimistic. And, what's interesting is, he's not a venture capitalist by background, he's an entrepreneur, but he thinks like a VC. Which is, what if it goes right? how do we make this go right?”
A quality of Richard Branson that stood out in this conversation is Richard’s ability to blend his personal and professional life effectively. I get why this happens and I’ve seen it across the founder universe (myself included). As an entrepreneur, your company is your baby, and your customers, employees, and ecosystem partners often become close friends. Blending the two is almost inevitable and sounds like it’s been a critical part of Richard Branson’s success.
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Miguel Armaza is Co-Founder & Managing General Partner of Gilgamesh Ventures, a seed-stage investment fund focused on fintech in the Americas. He also hosts and writes the Fintech Leaders podcast and newsletter.
Latif Peracha, General Partner at M13 - The Future of Money, Investing Frameworks, & Lessons From Working With Richard Branson