Welcome to Season 1 Episode 3 of Deconstructing the Raise - a show powered by Ventroduce.
David Jarvis is the CEO of Griffin, an API-first Banking as a Service provider focused on simplifying the complexity of banking infrastructure and compliance operations.
In November 2020, Griffin raised £6.5m in Seed - Series A Bridge round led EQT, a multi-stage VC based out of Stockholm.
..I think it took us about four or five months to go from first meeting to round closed but we spent several months just learning about each other with fairly low expectations on both sides..
David Jarvis, CEO Griffin
During this episode of DTR, Alex Theuma asks David about raising in a heavily regulated market like Banking, meeting EQT’s Tom Mendoza, and choosing the right legal counsel.
You should listen to the full episode for better context, but here are 2 key takeaways.
Experience Comfortability with Regulatory Redtape
When you have has strong regulatory restrictions, like in the banking sector, working with the right investors becomes even more important.
David chose EQT to lead the round as they have strong experience with open banking and have previously backed companies working in the space. This meant they were expecting the restrictions placed on their positions in the company.
As with raising any round, it’s important to work with investors that deeply understand your space.
“..EQT has a very, very close relationship with Banking Circle and is a, I believe, majority stakeholder in Banking Circle, which is a very, very well-established compared to us…”
Pick the right lawyer
Whether you’re facing extensive redtape or raising funding in a fairly unregulated market. The advice is you should seek to work with legal counsel that specialises in your area.
David's Investors advised him not to work with a PE firm but a company that had extensive venture capital financing experience and they've also advised challenger banks on their fundraising before.
“..we had originally been planning on using a private equity lawyer.. the investor who led (the previous round), was like, "I'm not comfortable with that. I don't care who you use but it has to be someone who really understands venture capital..”
Bridge rounds are very difficult to navigate. They often rely heavily on the conditions of the market, how ‘hot’ the sector is, and which investors are willing to participate.
But, here are some learnings from a founder that did it successfully.
Thanks for listening to Deconstructing the Raise! A show powered by Ventroduce - a European fundraising and investment platform built for SaaS Founders and Funders.
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