Issue 005: The Mangrove Newsletter
News & Expert Views, Reports, Insights, Thoughts, and Perspectives on Global Resilience and Business Continuity.
Welcome to Issue 005 of the Mangrove Newsletter! We hope you enjoy reading this as much as we enjoyed putting it together for you.
1. Updates on Mangrove
Mangrove Makes a Splash!
The past eight weeks have been a whirlwind of exciting developments for Mangrove! Our founder has been diligently participating in the Hive Founders accelerator designed to empower female founders in the pre-seed and seed stages. This intensive program offers a comprehensive toolkit for success, including hands-on training, invaluable mentorship, expert guidance, and crucial industry connections.
Demo Day Success!
Our hard work paid off! Mangrove was selected to participate in the Demo Day held at Google's London Campus in collaboration with Hive Founders. On June 10th, our founder delivered a captivating pitch that resonated with the audience, showcasing Mangrove's potential. The program's guidance, combined with the dedication of the Hive Founders team, has demonstrably accelerated our founder's development in a short period. We're incredibly grateful for their support and excited to see what the future holds for Mangrove!
Building Resilience Together
Our founder also had the opportunity to join Mouna Laaragat, Teresa Bartaseviciute, and Elizabeth Agbede at the inspiring Women of Resilience event. These remarkable women shared their personal journeys and powerful strategies for building resilience. The discussion highlighted the importance of community and shared experiences. In that spirit, each woman bravely stepped outside their comfort zone to share their stories and unique perspectives on resilience.
The event served as a powerful reminder that growth often occurs outside our comfort zones. By pushing boundaries, we strengthen our ability to navigate challenges. It was a truly inspiring experience, and we highly recommend checking out the recording.
These past few weeks have been brimming with activity, and we have even more exciting developments in the pipeline! Stay tuned for further updates in our upcoming newsletters.
2. Resilience Updates (What we are reading)?
LATAM Regulation:
Other LATAM countries:
Regional Initiatives:
Other regions:
Canada: The Office of the Superintendent of Financial Institutions is reviewing its Operational Risk Management Guidelines with a focus on operational resilience.
United States: The Federal Financial Institutions Examination Council (FFIEC) released a statement in November 2022 encouraging financial institutions to consider operational resilience implications of climate change.
Resilience Spotlight: Laura Jury - A Resilience Leader in Crisis and Business Continuity
MANGROVE · 5 JUN
Laura Jury is a passionate resilience professional living in the disruption risk-rich environment of New Zealand - featuring everything from large-scale earthquakes and being on the Pacific Rim to the ever-expanding global risks of cyber and physical security and every possible disruptive event in between. Laura has a proven track record in crisis manag… Read full story
Resilience Failures - When to embrace them:
As we delve into today's theme of entrepreneurship and the inevitable setbacks that come with it, we've discovered a fascinating article that explores the concept of resilience. While building a resilient company is certainly important, this piece focuses on the entrepreneur themself.
It highlights the importance of cultivating personal resilience, a powerful tool that can be honed through every experience, both triumph and struggle. Just like a muscle, resilience can be strengthened, and this article by Andy Dunn, founder of Bonobos and Pie, provides valuable insights on how to do just that.
Dunn's article explores the emotional rollercoaster of being a startup founder, particularly when facing challenges and potential failure. He grapples with the question of when to give up on a struggling company while also navigating his own mental health struggles.
The article sheds light on the pressure founders feel to tie their self-worth to their company's success, despite the prevalence of mental health issues within this community. It emphasizes the importance of prioritizing mental well-being and building routines for stress management. Additionally, the article explores down rounds of fundraising as a potential lifeline and the responsibility founders have to make tough decisions for their teams, customers, and investors. Ultimately, the message is one of perseverance, stressing that hope and optimism are essential for navigating the inevitable rollercoaster ride of entrepreneurship.
领英推荐
So, are you ready to build your resilience muscle and navigate the challenges of entrepreneurship? Let's dive into the key takeaways from Dunn's insightful article!
Resilience Successes:
Being a startup founder is one of the most difficult jobs in the world. Juggling your startup and, well, life, can feel like playing Tetris on a rollercoaster. We get it - it's a wild ride filled with amazing highs and moments that also make you want to curl up into a ball.??
So here at Mangrove we were really excited to see the launch of a new resource which speaks to our mission. The startup ecosystem has endless resources for navigating what success looks like but good quality resources on what to do when things go wrong and you need support, frankly do not exist.?
This is where UNWIND can help. UNWIND makes navigating the tough phases of the startup journey more straightforward and stress-free.???????????????????????????????????????????????????????????????????????????????
Unwind Mental Healthcare Foundation is a free resource designed specifically to help founders navigate the sometimes bumpy road of saying goodbye to their ventures. They understand the blood, sweat, and (hopefully not too many) tears you've poured into your idea, and they want to be a supportive shoulder to lean on.
Resilience is about understanding and acknowledging that things can go wrong, and choosing to take a proactive approach towards this. We are happy to see an initiative that aims to correct the head in the sand approach to address a critical yet often ignored phase of most entrepreneurial journeys.
Additional Readings:
3. Case Studies:?
CFSB, a small bank with a single branch, has carved out a unique niche as a strategic licensing partner for high-risk fintech companies like Revolut, Wise, Payoneer, and GoCardless. Through Banking-as-a-Service (BaaS), CFSB provides these fintechs with access to essential banking services they wouldn't otherwise qualify for. This strategy presents both opportunities and challenges for CFSB.
The global money transfer market is saturated with basic payment services. In this competitive landscape, companies are differentiating themselves by offering a wider range of features, blurring the lines between fintechs and traditional banks. From checking accounts to investments, these expanded offerings might appear to be provided directly by the fintech company. However, the secret lies behind the scenes: many of these companies leverage BaaS partnerships with lesser-known firms to gain the crucial regulatory backing and technology infrastructure needed to function.
This is where banks like CFSB come into play. CFSB offers BaaS by acting as a licensed partner for high-risk fintech companies. These fintechs may struggle to obtain their own banking licenses due to factors like their risk profile or lack of resources. CFSB's partnership bridges this gap, allowing these innovative companies to enter the market quickly and efficiently.
CFSB's strategy of partnering with high-risk fintechs offers a unique opportunity in the booming BaaS market, but it also comes with significant challenges. The bank faces concentration risk, as its financial stability is tied to a small number of potentially volatile clients.
For example, when Wise initially sought to enter the US market, obtaining regulatory approval in every state would have been a slow and expensive process. Partnering with a small regional bank like CFSB provided Wise with the crucial speed-to-market advantage it needed.
CFSB is regulated by the Office of the Comptroller of the Currency (OCC) and holds a national banking license. This allows them to serve their niche market by sponsoring fintechs and enabling their core service delivery. CFSB earns fees for this partnership, creating a win-win situation. Fintechs can outsource the complex regulatory burden to a team of experts, freeing them to focus on product development, growth, and customer acquisition.
However, this niche strategy is not without its risks. De-banking (being cut off by a traditional bank), concentration risk, and compliance resources are all key concerns. CFSB's reliance on a small number of clients creates a concentration risk, meaning the financial troubles of one partner could significantly impact CFSB's stability. Robust compliance procedures are crucial to mitigate both compliance risk and the potential for de-banking if their fintech partners fail to meet regulatory standards. As the potential consumer and market harm from disruptions to these partnerships grows, scaling operations and maintaining a strong risk management framework becomes increasingly important for banks like CFSB.
Despite these challenges, CFSB has successfully navigated this high-risk, high-reward environment and established itself as a key player in the BaaS market
4. What We're Working On:?
At Mangrove, we believe resilience is a critical tool for every entrepreneur and venture capitalists. That's why we're excited to announce the Whitespace pilot program, designed to educate startups and investors on building strong, adaptable businesses.
What is Whitespace?
Whitespace is our innovative approach to unlocking a businesses full potential with resilience education.
The Whitespace Pilot Program: Join the Journey
The pilot program is a three-stage journey, kicking off in May 2024 and concluding by December 2024. Here's what you can expect:
Are you ready to build a more resilient startup? We are!
Applications for the Whitespace pilot program are now active for startups and SMBs. To apply, please submit a form to register your interest. If selected, we will share the next steps.?
5. Work with Us
Global business, SMB, or a Startup? We understand that technology is essential for modern businesses, and we've built replicable processes for businesses that guarantee long-term scalability and sustainability.
Let’s work with you to build better and scale faster. Schedule a Demo with us here. We can’t wait to connect.
6. Want More?
Thanks for reading The Mangrove Newsletter! Head over to our substack and catchup on previous posts and issues.
Building Resilient Ecosystems That Bend, Not Break ?? | Scaling Impact, Reducing Risk, Increasing ROI ????
8 个月Mangrove - Formerly Fixity ??