Future Focus: November 2024
Northwestern Mutual Future Ventures
Investing in Financial Technology | Digital Health | Re-imagining Customer Experience
Welcome to our November Newsletter! ???? This month, we are excited to share in-depth market insights gathered from fall events, along with exiting news from our portfolio companies and more. In this newsletter you’ll find:
The NM Future Ventures Team
Market Insights ??
As the leaves turn and days get shorter, many companies, especially startups, enter one of the busiest times of the year – fall. This season marks crunch time. By the end of summer, most startups have a clear sense of whether they’re on track to meet their financial goals and commitments to investors. If the numbers are not up, it’s time to roll up your sleeves and push hard to finish the year strong to capture investors’ attention for the year ahead. However, investor interest doesn’t guarantee funding success. In today’s market, which we consider fairly balanced between startups and investors, startups need to focus not only on financial performance but also on delivering the unique value proposition that sets them apart from their peers. ?
While fall is known as crunch time, it is also an ideal time to forge new connections or reconnect with business partners and friends. After all, fall is conference season. Following key events like Insurtech Connect Vegas and Money 20/20, we identified four major trends shaping the startup ecosystem:?
1. VC returns & valuations: Investors remain highly selective, backing fewer but more high-potential startups. While the 2020 – 2021 period saw more risk taking, today’s market is defined by caution. Many GPs are also facing a very different fundraising environment as LPs have yet to see returns, with much of their capital still tied up due to fewer exits from prior funds. ?
2. Insurtech: Generalist investors with a broader focus beyond just insurtech are questioning the future of investment opportunities in the insurtech space. Market size, regulatory hurdles and capital demand were all cited as potential obstacles to an insurtech investment generating true venture scale returns.?
3. AI bottlenecks: Investors remain enthusiastic about AI, as reflected in heightened funding activity and generally high valuations. Implementation of AI at large enterprises faces challenges, as enterprises struggle to leverage AI across the organization beyond initial use cases.?
4. Personalization of wellness: In the life and health pace, the focus of health and wellness has evolved into a focus on longevity and leveraging personalized solutions such as genetic testing to lower risk factors for common diseases.?
The business world, much like the seasons, brings highs and lows. For some startups, this season may present tough challenges. But as investors, we encourage you to stay focused on your long-term strategy. Keep your ‘why’ in mind—the reason you started this journey. Continue delivering exceptional value to your customers and partners and embrace the inevitability of change. As Benjamin Disraeli said, “Change is inevitable. Change is constant.” ?
This month, we had the pleasure of sitting down with Cody Barbo , the founder and CEO of Trust & Will , to learn more about his entrepreneurial journey and leadership principles.?Cody and his Trust & Will team are on the mission to make estate planning less complex and more accessible to everyone.??
One of the first questions we always ask founders is: Why did you become an entrepreneur, and what inspired you to start your business? For Cody, it’s a mission to solve meaningful problems that impact people’s lives. “What motivated me to start Trust & Will was the opportunity to take something complicated and, frankly, intimidating, and turn it into something that’s approachable and affordable for everyone.”
We spoke not only about the highs of entrepreneurship but also about the challenges and lessons Cody has faced over years building Trust & Will. He also shares tips on raising capital and what’s next for Trust & Will.
Portfolio News ??
CB Insights Published 2024 Fintech 100 List?
We’re proud to see four of our portfolio companies recognized on the CB Insights 2024 Fintech 100 List: The World’s Most Promising Startups.
This annual list highlights companies leading the transformation of financial services. Congratulations to our portfolio companies on this incredible achievement!?????
Future Ventures Newsroom ??
1) Craig Schedler Shared His Thoughts on the State of Neobanks???
2020 was a great year to be a neobank. Credit was cheap, consumers were flush with cash and investors were bullish on fintechs. That buzz spurred a cohort of digital banks whose millennials and Gen Z customers sought perks like a mobile-friendly user experience, cashback rewards and early payday access. “In 2016, 2017, into 2018, it seemed like every day a new neobank had popped up” said Craig Schedler, VP of venture investing at?Northwestern Mutual?and an early investor in Chime .
Read full?Pitchbook article .
2) Northwestern Mutual Future Ventures Co-hosted the “America’s Got Access 2024" Competition
Last month, we co-hosted the “America’s Got Access 2024" competition with Commerce Ventures at Money20/20 conference in Las Vegas. This competition is designed to showcase innovative fintech companies that are dedicated to creating financial inclusion and enhancing financial well-being. We had the pleasure of meeting five incredible startup founders! Huge congratulations to the winner, Alex McLeod, MBA from Parlay (Techstars '23) , and to all the startups that presented their groundbreaking ideas!
#insurtech #fintech #innovation #startups #NorthwesternMutualFutureVentures #venturecapital #vc #neobanks #genomics