Podcast with Frank Rotman, Founding Partner of QED Investors

Frank Rotman, Founding Partner of QED Investors

In our latest podcast, Christian Rolon (WG ’19) is joined by Frank Rotman, one of the founding partners of QED Investors. QED Investors invests in early-stage Fintech companies based in the US, UK, and Latin America. Based in Virginia, QED was founded in 2008 by Rotman, Caribou Honig, and Nigel Morris (co-founder of Capital One). QED Investors has invested in Avant, AvidXchange, ClearScore, Credit Karma, Nubank, Remitly, and SoFi. Their exits include Braintree, Klarna, and Orchard.

Podcast Overview:

  • QED’s investment approach and focus
  • Why you need to build a good company before building a great company, and signposts on the journey from good to great
  • How to test critical assumptions in an early-stage venture, and the importance of learning the business drivers quickly and cheaply
  • How the recent slowing in early-stage funding is leading to a better set of startups
  • Why there’s a disconnect between private and public valuations for Fintech firms, and why some late-stage Fintech firms may choose to remain private for longer
  • Why consolidation will continue in the near-term, and which firms will look to expand their product offerings through M&A
  • Frank’s Copernican Revolution in Banking thesis and what it means for Fintech firms’ product roadmaps and potential strategic shifts for incumbents
  • Threats and opportunities that non-financial players present for Fintech firms
  • Fintech verticals Frank is most excited for in 2019
  • Importance of operational experience before beginning a career in venture capital

Frank Rotman is a founding partner of QED Investors. Frank’s portfolio companies include Avant, Credit Karma, GreenSky, LendUp, Prosper and SoFi. Frank publishes his thoughts on Fintech on his personal blog Confessions of a Fintech Junkie. Frank began his career at Capital One as one of its earliest analysts. At Capital One, Frank spanned a number of roles across subprime and upmarket cards, focusing on managing Capital One’s credit exposure and expanding new business lines. After leaving Capital One, Frank created a Student Lending company. Frank received his BS in Applied Mathematics and his MS in Systems Engineering, both from the University of Virginia.