Dan Ciporin, a GP at the Canaan Partners, was one of Lending Club’s first investors and has since served on the boards of a number of closely watched companies in the fintech space. MoneyBeat spoke to Mr. Ciporin to get his insights on the current and future state of the fintech industry. Some key takeaways from Mr. Ciporin----the public market does not yet fully understand the disruptive power of the online lenders like Lending Club (thus the IPOs have suffered), the alternative lending total market will grow to over $200bn, and the underlying infrastructure for fintech is the next area to invest.
“We see big opportunities to invest in the companies that enable industry. I look at sort of a California gold rush as a metaphor. Levis Jeans was started then. People made a lot of money in the gold rush by helping the miners vs. actually mining. So we’re looking at the things that can really help the system grow and provide the underlying infrastructure for financial technology.” “One example is automated compliance software. You have to be careful in financial services because it’s a world that requires compliance with a whole host of regulatory apparatuses. They need to have that fully automated. Lending Club fully automates its data and makes sure that its data is all fully compliant, but what about auto nor residential mortgages?”