Raido Capital Partners

We congratulate AI trailblazers Trey Holterman and the founding team at Tennr, Diego Baugh and Tyler Johnson on their incredible execution since we invested in their seed round. You can read about their latest $37M Series B Raise led by Lightspeed, with follow ons from Andreessen Horowitz and Foundation Capital and their next chapter here 👉🏼https://lnkd.in/eyCptW79. Special shout out to Jennifer Kaehms (Key Ventures) and Foundation Capital for bringing us along initially.

AI Meets the Family Back Office In North America, the estimated wealth of family offices was $2.4 trillion in 2024, more than double 2019 and expected to grow to $4 trillion by 2030 (Deloitte) across more than 4,000 families. Despite this scale, many offices operate with lean teams and limited infrastructure, particularly for financial administration and accounting. The day-to-day management of family finances, including bookkeeping, tax planning, multi-entity reporting, and cash flow, is often handled through fragmented, manual processes. This creates an opportunity for tech-enabled outsourcing, especially as smaller or newer family offices increasingly seek efficiency and scalability without internal teams. 🤝 At the heart of wealth management is the importance of relationships and trust. Clients expect personalized, reliable service from advisors who understand their financial needs. This dynamic has made firms cautious about automating or outsourcing core functions. However, even as technology is introduced, human involvement remains crucial. The most successful models will therefore combine AI-driven automation with human oversight, maintaining the personal touch clients value. This will ensure high service standards while reducing manual effort, balancing efficiency and satisfaction. 🧾 Most innovation in wealth tech has focused on investment management and deal execution. Pure-play software for portfolio management and client reporting are now well established, while financial administration and accounting—often seen as the less attractive “back-office” sibling—received less attention. Yet, these functions are essential for operational stability and client satisfaction, especially with multi-entity, multi-asset environments typical of family offices. This gap leaves an opportunity for businesses that enhance financial administration through productized services. ✨ Transforming legacy service models with technology and AI introduces new operating leverage in traditionally labor-intensive processes. Embedding software into service delivery increases gross margins while improving quality and responsiveness. This efficiency creates predictable cost structures and reduces dependency on headcount growth. It also gives rise to a new data moat previously missing in human-only service models. Vendors that successfully deliver an intelligently-augmented service model will become more resilient and attractive investments, as their increased profitability should enable higher reinvestment in growth, client acquisition, and innovation. 👉🏼 In short, wealth tech companies that combine intelligent augmentation with human expertise, focusing on operational efficiency while preserving client trust, are well positioned to capture market share. As the industry evolves, those that adapt their models to meet modern demands will generate superior risk-adjusted returns. #WealthManagement #FamilyOffices #AI

The freewheeling BaaS days are done. Welcome to the next era of embedded finance, where the winners are banks that get compliance, fintechs that get banking, and middlemen who get both (and don't get in the way). Ana Liza Grandner (First Bank of the Lake), Phil Goldfeder (American Fintech Council), and Maxime Seguineau (Raido Capital Partners) laid it all out in an insightful chat. Case in point: watch AnaLiza Grandner explain how banks should think about evaluating and onboarding new fintech programs👇 This is the kind of exclusive content Fintech Takes Network members will get (full replays, deep dives, behind-the-scenes conversations – oh my!). For those obsessed with fintech (you know who you are 👀), the Fintech Takes Network is coming. Join the waitlist here: https://lnkd.in/gVkPV-Sm

Maxime Seguineau from Raido Capital Partners will be attending SuperReturn North America 2025, on March 17-19. Come meet him at the Intercontinental Hotel in Miami! Raido Capital Partners makes investments across the financial domain, in areas such as analytics, banking, CFO stack, compliance, insurance, payments, trading or wealth management. We focus on the adoption of new tools and technologies that improve business processes, reduce operational risks and drive incremental growth across the financial landscape.

Maxime Seguineau and Vincent Toesca from Raido Capital Partners will attend Fintech Meetup next week (March 10-13, 2025) in Las Vegas. Come meet them at the event! Raido Capital Partners makes investments across the financial domain, in areas such as analytics, banking, CFO stack, compliance, insurance, payments, trading or wealth management. We focus on the adoption of new tools and technologies that improve business processes, reduce operational risks and drive incremental growth across the financial landscape.

Join Maxime Seguineau, Managing Partner at Raido Capital Partners, AnaLiza Grandner, EVP & Chief Payments Officer at First Bank of the Lake and Phil Goldfeder, CEO of the American Fintech Council on March 4th, 2025 at 12PM ET for an exciting webinar hosted by industry thought leader Alex Johnson. These experts will discuss how banks are adapting to shifting competitive dynamics and how embedded finance is driving new revenue streams. Register here: https://lu.ma/ne4vs365

Maxime Seguineau from Raido Capital Partners will attend iGlobal Forum Independent Sponsors Summit in Miami next week (March 4-5, 2025). Come meet him or book a time from the iGlobal Forum portal! Raido Capital Partners makes investments across the financial domain, in areas such as analytics, banking, CFO stack, compliance, insurance, payments, trading or wealth management. We focus on the adoption of new tools and technologies that improve business processes, reduce operational risks and drive incremental growth across the financial landscape.

Fintech Specialty Finance Originators (FSFO) have become a key part of private credit, offering lending solutions beyond banks. FSFOs use technology to originate, underwrite, and service loans across consumer, small business, real estate, and secured lending. They fill the funding gap with faster credit decisions, digital-first experiences, and access to underserved markets. ⛽️ Assessing The Revenue Engine Evaluating an FSFO investment requires understanding its revenue model and credit underwriting sustainability. FSFOs generate revenue through Net Interest Margin (NIM) on loans, loan sales, and servicing fees. Strong risk management is essential, as poor underwriting can lead to concentration risk, borrower overexposure, and credit deterioration. Investors must determine whether an FSFO’s model remains resilient across credit cycles and if loans are appropriately priced for risk. This is crucial since the post-GFC era has lacked a credit-led downturn to test underwriting assumptions. Another key factor is whether expanding an FSFO’s loan book dilutes credit quality, as aggressive growth can lead to adverse selection and weaker portfolio resilience. 💵 Why Efficiency Matters Operating efficiency is key to an FSFO’s long-term viability. Banks use the efficiency ratio (non-interest expense as % of revenue) to measure spend, a principle that should apply to FSFOs. A well-run FSFO controls costs in loan servicing, compliance, and customer acquisition. While many claim proprietary technology as a moat, underwriting is now commoditized, reducing the need for costly in-house engineering. The true differentiator is attracting and retaining high-quality borrowers at a sustainable Customer Acquisition Cost (CAC). Metrics like borrower retention, cost per funded loan, and cohort-level credit performance reveal an FSFO’s efficiency in scaling. 💼 Valuation Dilemma At scale, FSFO financials resemble banks, with revenue from NIM adjusted for charge-offs. Thus, FSFOs should be valued like banks, using book value rather than software-like revenue multiples. Many VC-backed FSFOs push for valuing the enterprise by revenue or origination volume. While justifiable in early unprofitable stages, this distorts long-term incentives. The real valuation premium comes from consistently originating high-quality loans across market cycles while maintaining a strong competitive position, aligning with Porter’s 5 Forces—supplier power, customer stickiness, and underwriting barriers to entry. In Short: FSFOs need equity investors who balance growth with profitability. Unlike VC startups focused on hypergrowth, FSFOs must scale efficiently, prioritizing cash flow and retained earnings. With discipline, they can become highly profitable and trade at a premium to book value, reflecting strong risk-adjusted cash returns. Investors should emphasize underwriting discipline, operational efficiency, and sustainable unit economics to identify FSFOs built for long-term success.

Fintechs have transformed our relationship with money, but none of their offerings could exist without banks. Now, after years of regulatory scrutiny, sponsor banks are back in the driver’s seat. So, what’s next? Join us on March 4th to unpack: - How banks are adapting to shifting competitive dynamics - How embedded finance is driving new revenue streams - How technology is reshaping financial expectations Don’t miss insights from: - AnaLiza Grandner, EVP & Chief Payments Officer at First Bank of the Lake - Phil Goldfeder, CEO of the American Fintech Council - Maxime Seguineau, Managing Partner at Raido Capital Partners Register now! https://lnkd.in/gyQsR8D2