"Meet the Founder" of Sygnum
In the first of BitRock Capital's "Meet the Founder" series, we sat down with Mathias Imbach, Co-Founder and Group CEO at Sygnum. A self-professed libertarian who had once ditched bank accounts, Swiss-born Mathias describes his whirlwind journey that led him to co-establishing a crypto bank and shares the ups and downs of entrepreneurship.
Q. Could you talk us through your journey that led you to co-establishing Sygnum?
Mathias: It began with a trip to India. I was 19 and na?ve, setting out to befriend Ratan N. Tata, the (emeritus) chairman of one of India’s largest conglomerates Tata Group, for a university conference.
As crazy as it sounds, it worked! Ratan Tata became a friend and mentor, later thrusting me into the world of entrepreneurship through RNT Associates, his venture investments platform in 2015. That was when I met the early proponents of blockchain and decentralized finance, including the founder of Ethereum.
Drawn to the idea of democratizing access to capital, I joined the first hype for initial coin offerings (ICOs) during 2014-2017 and even tried to live without a bank account for a time. I disliked the way in which centralized internet platforms capitalized on data at the behest of a few tech giants and wanted to build something to reclaim control of our data and identity.
At Singapore's Fintech Festival in 2017, I sat down with a few others and discussed how, although the concept of blockchain was great, it was detached from the realities of existing financial frameworks. The other co-founders and I set out to build both the infrastructure and trust to foster the true adoption of blockchain – and that was the genesis Sygnum.
It might not have happened were it not for that trip to India and Ratan Tata. An early supporter and inspirer, Tata is now one of Sygnum's investors.
Q. What is your vision for Sygnum in the next 2-3 years? Where do you want to take the company to and what milestones are you looking to reach?
Mathias: We'll continue our journey to becoming the world's most trusted digital assets technology group. To get there we'll have to stay agile in a fast-moving industry and not be distracted by market noise. Some key priorities are:
Q. How do you see the crypto market evolving over the years?
Mathias: The crypto token industry can be seen as a world full of early-stage, liquid assets. This leads to booms and busts – it's inevitable. We will likely continue to see cycles of fast adoption, exaggeration, consolidation, fear, resignation, new use cases, hope, followed by more adoption.
However, we are convinced that the foundation of the crypto economy – namely the ability to transfer originals between stakeholders with immediacy – remains intact and will continue to foster adoption of crypto over the next 10 years. The recent crash of stablecoin TerraUSD and sister coin Terra (Luna) only demonstrated to us the resilience of the crypto markets and its long-term potential.
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Q. What were some of the challenges when founding Sygnum?
Mathias: in the first six months of funding, we had a sudden change in the senior management team. We realized our then-Chief Technology Officer (CTO) wasn't the right fit and had to inform investors of his departure at the last minute of a USD 10m close.
That's the challenge of being a co-founder – knowing when to make tough decisions in the face of adversity as you stay true to your values. Plus, we value having a no-asshole policy at work.
It's never smooth when you're building something from scratch – an entrepreneurial journey is a constant oscillation between euphoria and terror. You could wake up ready to conquer the world before questioning your chances of survival later that same day. And then you go to bed thinking it's just about going to be ok.
Q. What have been some of the moments of euphoria?
Mathias: there's been many – when we received our license from Singapore, when we got our first big client, when our clients referred us to new ones. That's a beautiful feeling – when you realise your clients enjoy your services to that extent.
We realized we'd come a long way when we crossed the USD 1bn milestone in assets under management (AUM). That was worth a big celebration!
Other than business achievements, the journey is about the people with whom you share it. All the original co-founders are still committed and we're also good friends. I recently celebrated a belated wedding in Cape Town, South Africa, with family and friends including the other Sygnum founders.
Q. Do you have any tips or advice for fellow entrepreneurs?
Mathias: be clear on the idea and your conviction behind it. Imagine a thousand people telling you you'll fail – the idea needs to be something you really love and believe in. Don't be an entrepreneur for money or the sake of being a CEO.
On the people side, you can't spend enough time thinking about the company culture. Devote effort in carving out what types of people you want to work with, and what you stand for. I'm still learning that every day.
Q. What do you look for from investors?
Mathias: having venture capital (VC) backers who understand entrepreneurs is important. The right investors are the ones who know when to interact with the founders and have a purpose when doing so. There's a difference between offering real support and guidance for a reason, versus reaching out just for an update.
VCs can also add value by bringing together other company founders. They could create forums where fellow entrepreneurs can share ideas, experiences, and discuss potential business synergies or collaborations.