PAYPAL JUST MADE IT A CADILLAC MOMENT
PayPal just made it a Cadillac moment
How Great Brands Fail
Both of our current presidential candidates grew up at a time when Cadillac was the Rolls Royce of the US auto industry. Everyone in their generation dreamt of the luxury and soft ride of that big rocketship; The Cadillac Calais, deVille, or Fleetwood. If you had one, you had certainly arrived. Or so it seemed to those who were at their peak in the post war years.
Great brands die when they lose their relevance.
More specifically, great brands die when their value propositions are no longer attuned to the needs and wants of their future generation of customers. You can't sit still with great brands and products and services that are just right but for an aging population. Unfortunately, they are the past, and the future is in the hands of the young and often they want something else.
What The Millennials Want
This complicated chart from two years ago shows what Millennials want to invest in. Unlike baby boomers who just loved their Cadillacs and were into being debt free and investing in 'high yielding' savings accounts CD',s and IRA's (25 average return of fixed income = 3% so not that high yielding after all), and Generation Xers who are still struggling to pay off their children's educational debt but also are primarily invested in fixed income, public equities, and a little real estate, the Millennials have something quite different on their minds.
The Millennials, even two years ago when this chart was created, wanted exposure to their favorite technology stocks and to virtual currencies.
Based on confidential research we have seen, today they all want three things.
Their favorite technology stocks
The leading cryptocurrencies
A clean world (more on this in a week or two).
And when we say ALL, we have seen that same result in the America's, Europe, Asia, and everywhere else too.
What The Traditional Financial Players Are Giving Them
The reason this is a Cadillac moment, is that the world's leading financial players continue to focus on value propositions that their older customers want: Fixed income, public equities, and large cap real estate. It's what they have on their platforms.
In fact, some of them are downright negative and dismissive of what their future customers want (that's like pointing a gun at your own brand's head).
Which is really even more dangerous when you take a good hard look and realize we are right now crossing that inflection point when the Millennials start to enter their peak earning years and begin to drive the power curve of capital formation and investment.
PayPal Just Went All In On The Future
We love PayPal- as customers, shareholders, some time advisors, and business partners.
Back in 2010 and 2011 Matthew led corporate strategy projects for the PayPal executive team including war gaming out the digital wallet and payments space for them. Alison later was on the board of Xoom and helped prepare it to be part of PayPal and both have a soft spot for a company that made global payments so much easier.
350 million other customers agree.
Now PayPal has announced that going forward every US customer can buy, hold and sell the leading cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, and Lightcoin) in their upgraded PayPal wallet.
We are proud that our portfolio companies Paxos and SFOX have been working hard with the PayPal team to make this happen. It was just a year ago that we met with PayPal on this big idea for the first time, and they have moved fast and very diligently to get this launched.
Well done PayPal.
Now all you other big banks, payment companies, asset managers, and so on.
What car are you driving?
Thank you for reading and please stay safe.
Alison Davis
Matthew C. Le Merle
The Intelligent Investor - Silicon Valley
We have wanted for a long time to write a book on what we have learned over the last three decades as early stage Silicon Valley investors. However, we just did not think that two people's voices warranted a book. Then the light bulb went on. Why not invite 50 or more of Silicon Valley's leading venture and angel investors to share their wisdom in one book.
So that's what we have just launched. We don't believe there is another book that has so much insight from so many of the leading Silicon Valley investors. A veritable fire hydrant of wisdom. If you missed the webinar launching the book, don't hesitate to check it out.
Find it at Apple, Smashwords, and other great booksellers now, or click here to buy it at Amazon.com.
Blockchain Coinvestors AngelList Syndicate
To be an LP in the Blockchain Coinvestors Syndicate on AngelList, and get access to our deals, go to http://bit.ly/BCSynAL and apply. We’ll announce our first investment opportunity in the next week, and plan on syndicating 6-12 investments a year in this way.
Register Now For Our Upcoming Webinars
Our Blockchain Coinvestors Fund provides unparalleled early stage access to the equity of American, Asian, and European blockchain companies. This webinar provides an overview of our investment strategy.
Blockchain Coinvestors Investment Strategy, Oct 26th at 7:00am PST
Blockchain Coinvestors Investment Strategy, Oct 26th at 12:00pm PST
What do Family Offices need to know for investing in blockchain and crypto technologies? We can provide information to develop a strategic that takes advantage of this intriguing market.
Family Office Exposure to Blockchain and Crypto, Nov 2nd at 7:00am PST
Family Office Exposure to Blockchain and Crypto, Nov 2nd at 12:00pm PST
Not sure when to get involved in technology investing? This webinar provides ideas on how to participate at the early stage which can often generate great returns.
Mastering Early Stage Technology Investing, Nov 9th at 7:00am PST
Mastering Early Stage Technology Investing, Nov 9th at 12:00pm PST
As we wrap up 2020, we have some thoughts about what 2021 will bring in regards to blockchain and crypto technologies.
2021 Blockchain Predictions, Nov 30th at 7:00am PST
2021 Blockchain Predictions, Nov 30th at 12:00pm PST
Our webinar library can now be found at www.fifthera.com/webinars.
Recent Appearances
Matthew Le Merle, best-selling author and Co-founder of Fifth Era moderates a panel with Haseeb Qureshi (Managing Partner, Dragonfly Capital Partners), H. Joshua Rivera (General Counsel, Blockchain Capital), and Matthew Walsh (Partner, Castle Island Ventures) as they discuss what trends are motivating blockchain investments in the market today, which of their portfolio companies is closest to an IPO, and what assets have made their balance sheets.
Learn More
Also visit us at www.fifthera.com and www.blockchaincoinvestors.com to find more information and request our investor materials.
We thank you once again for your support, and we hope that in this challenging time you and your family and loved ones are staying safe and healthy.
Best wishes,
Alison Davis
Matthew C. Le Merle