The Fintech Finance 40: Brad Bernstein and Richard Garman

Currently ranked: 6
Previously classified: 7

Let others get caught up in the fads, hype cycles, and volatility of technology investments. FTV Capital has been using nearly the same formula for nearly 20 years with remarkably stable results – better than stable considering it seeks portfolio companies with historical and short-term revenue growth of at least 20 percent. Managing partner Richard Garman, a former managing director of a payment company who joined San Francisco in 1999 and then Financial Technology Ventures, emphasizes “evolution instead of revolution”. FTV makes growth stock investments, not long-term bets on startups, but has generated more than $ 2.5 billion in returns (totaling $ 2.7 billion in total capital) since the inception of the first of its five funds. The company states that its portfolio companies’ average annual revenue growth has been a whopping 85 percent for three years after its investment.

The momentum comes from “consistent execution and discipline,” says Brad Bernstein, a New York-based Garman colleague who joined FTV in 2003 from Oak Hill Capital Management. Bernstein says FTV’s Global Partner Network deserves much of the credit for steering the company and moving its portfolio selection in the right direction. The network is an invention of FTV before the spread of accelerators and ecosystems and brings together limited partners and executives in the financial and technology industries with entrepreneurs.

“We leave these meetings with ideas, which we then summarize into investment theses,” said Garman after FTV’s annual partner conference in September, which was attended by 200 people. These interactions have resulted in hundreds of sales contracts for the portfolio companies. The pace of business is as constant as anything else related to FTV. Investments led by the company this year include a $ 19 million Series D round for the fast-growing digital identity company and $ 56 million in funding for the in India based research firm MarketsandMarkets.

The complete Fintech Finance 40 can be found here.

Comments are closed.