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00:00KEY INVESTOR IN THE SPACE. TELL US WHAT YOU GOT. CAROLINE: THANK YOU. I GOT A CHANCE TO SIT DOWN WITH ROB MOFFAT, PARTNER AT THE LARGEST SERIES A FOCUSED COMPANY. IT ANNOUNCED A $66 MILLION FUNDING ROUND THIS WEEK TO HELP EXPAND GEOGRAPHICALLY BUT ALSO PUSH INTO CRYPTOCURRENCIES. BEFORE DELVING INTO THE WORLD OF BLOCKCHAIN, I STARTED BY ASKING WHERE HE WAS FINDING OPPORTUNITIES TO INVEST. TAKE A LISTEN. > > WE HAVE SEEN A LOT OF ACTIVITY AROUND LENDING. THE FIRST PEER-TO-PEER LINDNER LENDER. THAT WAS THE FIRST AREA WE FEEL IS GREAT GROWTH. THE SECOND IS AROUND REFORMS OF DOING DIGITAL BANKING. $66 BILLION RAISED THIS WEEK. THEY DO FOREIGN-EXCHANGE FOR PEOPLE TRAVELING ABROAD FOR FINANCIAL NEEDS AND BECOME THIS REAL HELP FOR FINANCIAL NEEDS. THAT HAS BEEN QUITE A GROWTH FROM ZERO TO 700,000 USERS OVER TWO YEARS. IT IS EXTRAORDINARY TO SEE THAT GROWTH IN FINANCIAL SERVICES. CAROLINE: WHAT ABOUT THE CRYPTOCURRENCY IN GENERAL? WE HAVE HAD VOLATILITY THIS WEEK. HOW DOES THIS CONTINUE TO GROW OR NOT? > > WE ARE LOOKING FOR HALF WE WILL BUILD REAL BUSINESSES. I THINK ETHEREUM IN PARTICULAR IS FASCINATING. THERE ARE SO MANY DIFFERENT INDUSTRIES THAT CAN BETRAY TRANSFORMED USING ETHEREUM -- THAT CAN BE TRANSFORMED USING ETHEREUM. WHETHER IT IS TRADE, WHATEVER IT MIGHT BE, THERE IS A LOT YOU CAN DO WITH SMART CONTRACTS. THE QUESTION IS HOW FAR AWAY IS THAT AND HOW LONG IT WILL TAKE TO GET THERE AND WHAT MECHANISM YOU USE TO GET THEIR. DOES IT JUSTIFY HAVING HUNDREDS OF DIFFERENT COINS FOR EVERY DIFFERENT USE CASE OR IS THERE A LOT I CAN BE DONE WITH ETHEREUM? THAT IS WHAT I AM TRYING TO WORK OUT NOW. I AM LESS WORRIED ABOUT THE NEAR-TERM VOLATILITY. CAROLINE: WE HAVE SEEN PLENTY OF VOLATILITY IN RECENT SHARE OFFERINGS. IN THE U.S., SNAP IS DOWN AGAIN TODAY. ARE YOU OPTIMISTIC OR MORE SANGUINE ABOUT THE EXIT FOR COMPANIES SUCH AS YOURS? > > I THINK THE IPO MARKET IS THERE IF YOU HAVE A GOOD COMPANY. YOU HAVE TO BE ABLE TO PREPARE FOR THAT. THEY HAVE THE CLASSIC WAY OF DOING IT. BEAT, RAISE, AND BUILD FROM THERE. MAYBE SNAP WENT OUT TOO HIGH. IT IS STILL A MULTIBILLION DOLLAR UP ANY CREATED FROM NOTHING IN FIVE YEARS. THAT IS AN IMPRESSIVE RESULT FOR SNAP. CAROLINE: HAS YOUR VIEW OF WHAT A GOOD COMPANY IS CHANGED? OR THE LIFECYCLE OF A GOOD COMPANY? IS THERE PRESSURE ON PORTFOLIO COMPANIES TO NOT JUST HAVE REVENUE BUT ALSO BE SHOWN NEW PROFITS AS WELL? DO YOU NEED TO BE MORE OBVIOUS ABOUT A VIABLE BUSINESS MODEL? > > IN EUROPE, THAT HAS ALWAYS BEEN THE CASE. I CANNOT THINK OF ANY TECH IDEA IN EUROPE WHERE THE COMPANY HAS NOT BEEN PROFITABLE OR HAD A CLEAR PATH TO PROFITABILITY. I THINK IN THE U.S., THAT HAS NOT NECESSARILY BEEN THE CASE. THERE HAVE BEEN A FEW THAT HAVE MANAGED TO GET OUT PURELY ON GROWTH. WE HAVE NOT SEEN THAT HERE. I THINK, HAVE THE DYNAMICS CHANGED? NOT REALLY. GROWTH IS WHAT PEOPLE GET EXCITED BY. CAROLINE: ARE THERE ANY PORTFOLIO COMPANIES THAT ARE POTENTIALLY READY TO IPO? > > I THINK THERE ARE A COUPLE OF HOURS IN THAT WINDOW. IT IS STARTING TO GET AT THE RIGHT PRICE. WE DID AN IPO IN THAILAND. THAT IS A NICE SUCCESS STORY FOR US TO THINK ABOUT FOR OTHER PORTFOLIO COMPANIES. CAROLINE: M & A NOT THE ONLY ROUTE TO EXIT. THERE ' S ALSO IPO. ARE WE SEEING OTHERS WANTING TO GET INTO STARTUPS? > > I THINK THE START OF -- STARTUP -- SOFTBANK FUND IS A GOOD INDICATION. CAROLINE: DOES THAT WORRY YOU? > > THEY ARE OUT OF OUR RANGE. THEY WANT TO INVEST $500 MILLION. OUR MAXIMUM IS $15 MILLION. THEY ARE NOT SHORT OF AMBITION. THEY ' RE WILLING TO TAKE OUT THE BIGGEST PUBLIC TECH COMPANY IN THE U.K. THAT IS AN INTERESTING STRATEGIC INVESTMENT. I THINK WE WILL SEE MORE OF THAT COMING FROM CHINA IN PARTICULAR. THE U.S. CONTINUES TO BE ENGAGED WITH EUROPE WITH GOOGLE AND OTHER ACQUISITIONS. MAGIC PONY LAST YEAR HAD A STRATEGIC PRICE.

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Balderton's Moffat on Cryptocurrencies and Tech Startups

Rob Moffat, Balderton Capital partner, discusses where he's finding investment opportunities, the state of cryptocurrencies and the VC market with Bloomberg's Caroline Hyde on "Bloomberg Technology." (Source: Bloomberg)

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