While fintech has perhaps fallen out of the spotlight in venture capital, it remains a significant part of the UK venture capital scene. It is one of Love Ventures three specialist areas, and in this episode co-founders Marcus Love and Adrian Love give their views on how the sector has developed and what matters now.

In a great discussion, Marcus and Adrian talk about:

• the difference between v1 and v2 of fintech
• why financial services is so attractive for innovators
• how business models have developed
• matching founders to the right product
• how incumbents are responding to new entrants and the advantages the latter have
• why the UK is doing well in supporting fintech
• how AI fits into their investment thesis
• what areas are attractive for investment today

Although Love Ventures is a relatively new manager, both Marcus and Adrian have strong backgrounds in entrepreneurship and investing. This experience allows them to being some great insights into how the world of fintech is progressing today.

PS This was recorded while travelling, so apologies for the echoes in the background for the host.

00:55 Marcus and Adrian introduce themselves

02:55 Love Ventures

05:15 versions 1 & 2 of fintech

08:50 why financial services is so ripe for innovation

11:25 blockages to blockchain in the real world yet

14:00 finding the correct business models going forward

17:00 importance of product/founder fit

19:40 Incumbents vs new entrants

22:00 report on corporate venture capital

25:10 the UK regulatory sandbox

27:10 UK as a model for other countries

28:45 how the need for capital hasn't changed

33:30 looking for right scale of problem to invest in

35:20 role of AI - specialist / small models

40:45 data confidentiality - importance of specialist data

43:40 prime areas for investing now

45:30 Favourite questions

Links

Love Ventures website - https://loveventures.co.uk/

Love Ventures on LinkedIn - https://www.linkedin.com/company/love-ventures/

Report on corporate venture capital - https://loveventures.co.uk/navigating-cvc/

Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listen

Suggested books and media

The Power Law by Sebastian Mallaby

The Anxious Generation by Jonathan Haidt

Bios

Marcus Love,

Co-Founder, Love Ventures

In the first part of his career he spent nearly 10 years in Paris working in consulting for Cap Gemini then in a start-up and in various sales roles. In 2005 he moved back to London and worked for 14 years in the City selling global equity research to fund managers.

He started angel investing in 2015 and built up an angel portfolio of 20 companies, building an angel syndicate along the way. HE formed Love Ventures in March 2020 at the start of the pandemic and hasn’t looked back since.

He loves helping portfolio companies where he can, and is super excited by the growth of their first two funds and their super team! Outside work, he enjoy sports, culture and travel. Most recently he cycled 458 miles in eastern Turkey for a charity called 1morechild.

Adrian Love,

Co-Founder, Love Ventures

The early part of his career was spent at The Instant Group, a high growth pioneer within the global flexible workspace sector where he focussed on enterprise sales before its acquisition by MML Capital – their digital assets have now merged with IWG Group. From 2016, he worked at Dorrington PLC, a £1.4Bn private investment company, where he was an investment manager of a £200m portfolio of assets.

During this period, he began his own entrepreneurial journey within property development and also started angel investing, building up an angel syndicate alongside his brother Marcus. Having been in business together since 2009, they co-founded Love Ventures in 2020 and enjoy using their extensive networks to help the founders across our portfolio.

Outside of the world of start-ups, you can usually find him on the sports pitch whether it’s regular five-a-side football, squash, golf or skiing. He also loves an adventure and has been recruiting founders for a round the world cycle to Sydney, starting off with London to Paris in September.