Frank Rotman, a Founding Partner of QED Investors, tells us why a brand is a promise that when kept creates preference

In today’s episode we speak to Frank Rotman, a Founding Partner of QED Investors which is a global leading venture capital firm based in Alexandria, Virginia founded by Nigel Morris and Frank Rotman in 2007. QED Investors is focused on investing in early stage, disruptive financial services companies in the US, the UK, Latin America and South East Asia. QED Investors is dedicated to building great businesses and uses a unique hands on approach that leverages its partners decades of entrepreneurial and operational experience helping their companies achieve breakthrough growth. Those investments include Avant, AvidXchange, ClearScore, Current, Creditas, Credit Karma, GreenSky, Kavak, Konfio, Loft, Mission Lane, NuBank, QuintoAndar, Remitly and Sofi.

We kickstart the show by asking Frank how do you become a VC/PE guy and what has led him to this point:

• University of Virginia - graduated in a few degrees, systems engineering, artificial intelligence and applied math and statistics
• Joined Signet Bank later became Capital One
• One of the first fintech
• In 2005 built a student lending company
• Landed up creating QED Investors
• Innovate in the banking ecosystem
• Helping cracking the code

Then we ask Frank, what does the thirst to make a difference look like in his world:

• What motivates you
• Steep part of the learning curve at all times
• Look at the problem as your life's work

We then ask Frank, what are some of the must haves to a big business or big idea:

• Where you can personally get involved
• What is the problem unaddressed - we have a solution for that
• Pairing problem statements with solution statements

We have Frank explain, what is the journey of getting product market fit and where do you guys come in?

• As early as taking an idea and go out finding a CEO
• Helping founders overcome profound problems
• Systemic de-risking of the business
• Great companies are built on good companies

We move on to the personality stuff, asking Frank what has been his journey when working with founders and making them leaders?

• Great people cant be great at everything
• Feedback is the other person trying to turn you into them
• Know people before you give advise
• Five key roles that a CEO plays - visionary, team manager/leader, sounding board, Chief Procurement Officer and brand champion
• Well designed organisational structure
• If you’re not allowing your team to make decisions you can't hold them accountable for the results
• A brand is a promise that when kept creates preference

Next we have Frank tell us, does he feel like it's possible to fill all those roles or do you gravitate towards one?

• Founders can grow
• If they can surround themselves with amazing lieutenants that can pick up the slack
• A CEO who became better as the business and talent grew

We ask Frank, regarding Series A funding, setting expectations with companies around investment?

• The asset class is evolving and professionalising
• Money from public markets moving into private markets
• More banks becoming inquisitive

We move on to asking Frank where he feels fintech is going?

• Lending is a dark art
• Lending to people who are unemployed
• Lending is complicated and one of the pillars of banking

We ask Frank to highlight some trends of what his seeing in his portfolio:

• Underbuilt by single family housing
• In 2008 the entire country was on sale, nobody knew what a house was with until things stabilized
• Demographic issues