The Elephant in the Room

On November 8th, over the course of 120 minutes, every major pollster, media outlet, and virtually all our industry peers were shown we live in a bubble. We anticipate a Trump Administration with a heightened mandate to improve life for a large, disenfranchised consumer segment, and expect the regulatory environment to improve for the benefit of financial innovation.

If there were ever a clarion call that the rest of America is not just fly-over country who live a starkly different reality, this election was it. With Core I, we started our journey focused on the hidden US underbanked population. We soon realized that a much bigger demographic of “everyday Americans” eluded the benefits of globalism over the past quarter century and are desperately trying to fight their way out of economic insecurity, as this chart shows nicely. Donald Trump’s election, in part, is a validation of this thesis. The Core team is going to listen and learn more in the months ahead.

Just like we believe in the power of free markets to unlock human potential, we also believe in the power of globalization and migration. Every day, information, capital and people will seek opportunity around the world with increasing alacrity. The isolationist movement that’s sweeping the West today is an important reminder that we need to mind our backyards. We remain bullish on technology serving a powerful role in helping everyday Americans increase their household stability and mobility.

While it’s still too early to tell, we’re quite certain that a Trump presidency will equate to less financial regulation. This will likely have a negative impact on certain consumer protections. We believe the impact on Fintech innovation will be positive with generally fewer restrictions and lower compliance obligations over the course of the next four years. We don’t anticipate the removal of the CFPB, but we do expect its mandate to be curtailed.

Core Innovation Capital is a venture capital firm investing in companies committed to empowering small businesses and everyday Americans. Our portfolio companies deliver more efficient, well-designed solutions that save people time and money, create upward mobility, and scale broadly — driving both profit margins and consumer value.