How We Launched A B2B Investment Platform And Closed Our First Deals

Mila Khrapchenko

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Published: March 23rd, 2024

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About
Business

Mila Khrapchenko

Founder, Ameetee

Founders

Ameetee

ameetee.io

from Tel Aviv, Израиль

started

Founders

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Hello! My name is Mila and I am a co-founder and co-CEO of Ameetee.

Ameetee is an investment platform for financial organizations to offer white-label securities with shares of private companies. It takes care of the entire deal preparation process, starting from selecting and vetting the company to creating a note ready for sale to the end client.

We are a B2B fintech platform democratizing access to private company shares for financial institutions of all sizes. I am also an angel investor with a global portfolio of 30+ early-stage VC investments, and actively contribute to the companies’ fundraising and business strategy.

As a member of a few angel investor clubs, I remain engaged in angel investor communities, which fuels collaboration and gives me the opportunity of meeting more visionaries who are changing the world with their ideas.

Ameetee is a step forward for financial institutions that lack the resources to create securities linked to non-public companies' shares, enabling them to expand their offerings by providing their clients access to investment opportunities in private companies without expanding their staff.

This allows retail investors to potentially diversify their portfolio, and it is also beneficial for startups, as they can access additional financing without diluting their cap tables, something of paramount importance given the limited current venture funding landscape.

What's your backstory and how did you come up with the idea?

I have extensive experience in the investment banking sphere, having dealt with a variety of different instruments, such as publicly traded securities, structured credit, derivatives, and securitizations, on the one hand, and with different markets, such as interest rates, foreign exchange, commodities, bonds, and stocks. Both credit risk and market risk management were a part of my career experience.

On the personal investment side, I initially started with listed stocks and bonds. As my expertise expanded, other assets became of interest to me, too. For instance, I became interested in investing in distressed bonds, as I believe that, when evaluated with proper analytics, they have a high potential for future earnings.

Then, I started investing in very early stage companies as an angel investor, and it had many similarities to distressed debt. There is the possibility of a significant upside, however, there are a lot of risks involved.

Because of this, I realized that the sweet spot to capitalize on emerging ventures was investing in late-stage companies. The challenge was that these required a lot more funding, and the small cheques I was able to offer were not suitable for them. This led me to start looking for options.

At some point, we came up with the idea of combining our banking experience with our interest in investing in late-stage startups. We noticed there was a gap in the market for accessing such instruments since these opportunities are usually only available to sophisticated investors who were prepared to write large checks.

It is very complicated even for HNWI (high net worth individual) investors to invest in a private company, even though it could offer attractive returns and an opportunity for diversification. Upon exploring the space, we found that even investing through B2C platforms had many uncertainties, especially in late-stage investments.

Furthermore, my own attempt at investing through a bank showed me the complexities of the process, including uncertainty and difficulties in accessing assets. This planted the seed for the idea of creating our own investment instruments.

Together with my partner Serge, we developed the concept and launched products that we would want to use in one of the brokerage firms, while Natan did just the same with another broker.

Our validation was simple - we created tools that were in demand. We saw that other financial institutions were also interested in similar opportunities for their clients. That took us one step further - we quit our corporate careers and set up Ameetee.

Thus, our idea stemmed from personal experience and market need, and we decided to fill this gap by creating instruments that would meet our investment needs and interests. In doing so, we are democratizing access to opportunities that would otherwise only be available to a few people.

Things don't unfold as quickly as planned, even with conservative estimates. Hence, we need to be willing to be flexible and to adapt and pivot rapidly to the circumstances of the moment.

Take us through the process of building the first version of your product.

We started by selecting a company name and designing the initial interface with the help of a professional agency. Our initial focus was on developing a presentable website as a means to introduce our venture.

Subsequently, we identified a CTO with experience in various IT projects and tasked them with creating a marketplace for investments. Concurrently, we familiarized ourselves with various IT and UX services such as Jira, Miro, and Figma delving into project management and UX design.

Recognizing the importance of client engagement, especially in a volatile market, we actively communicated with prospects, conducting in-depth interviews and participating in conferences.

Additionally, we realized that the first product version should incorporate automation to gauge market demand and preferences. This process involved numerous distinct yet crucial steps and decisions on our part.

Describe the process of launching the business.

As with any startup, we aimed for an organized launch, which meant creating the company, making presentations, and raising some funds to get started. We knew we needed a website and a solid and reliable platform, or at least a first version of it in contract with our first clients. On paper, in our Task Manager, it all looked very organized and structured. In practice, however, our actions were not very structured because we tried to do everything at once.

The only thing that might have been somewhat structured was the creation of compelling presentations. We built a financial model, which ultimately turned out to be overly optimistic, and reached out to our close circle to attract investments.

Fortunately, despite the end of 2022 and early 2023 witnessing a real “venture winter”, we found some angel investors quickly. They were mostly people who had previously done business with us, understood our ability to execute and deliver, and more than anything, believed in us.

They saw that we had a sizable target market, the idea had the potential to disrupt an industry and, was technically feasible. It seemed like we had enough skills. Believing in us, they provided us with initial investments, and we created the company, and then it was all as I described. We made the first website, hired a CTO, and, started developing an MVP and looking for the first customers.

We debated with the CTO for quite some time whether to hire a team of programmers, but the situation was so uncertain that we decided that instead of hiring an internal team of programmers, it would be better to go with an externally qualified team, create the first version of the platform, and then decide upon the next steps.

Our logic was the following:

If the platform was developed successfully, then we would hire our own IT specialists, and they would work on further developing the platform. Our original initial website consisted solely of a landing page, where we talked about what Ameetee re-presented. There, you can find a link to the platform.

This link requires you to register. Once we have customer’s information, we conduct video or conference calls with them in case they are interested.

Additionally, we, the founders, find potential clients in many different ways. We found some at conferences, some through acquaintances, and a lot through the network that we already had in this environment by the time we started something.

However, undoubtedly, a very big challenge for us was looking for institutional customers in different countries as this was something we had never done before.

The key lessons I learned from the startup process can sound cliché but hold true. Firstly, things don't unfold as quickly as planned, even with conservative estimates. Hence, we need to be willing to be flexible and to adapt and pivot rapidly to the circumstances of the moment.

Secondly, it's vital to heed critical feedback from all sides, like potential clients, investors, and contractors, without taking it personally. Often, there's valuable insight into risks and market demands. For instance, our initial focus on high-tech investments only shifted when we realized the demand for fixed-income tools, leading us to adapt quickly to market needs.

Another lesson we learned is the importance of being careful with our resources and using our network effectively. Building long-term relationships with clients and partners early on is crucial. We also regularly discussed mistakes and ways to improve, keeping communication open and solving problems together along the way.

Establishing clear, transparent communication channels with our stakeholders is something that we take very seriously, and it can make a difference in the lasting success of our company.

Since launch, what has worked to attract and retain customers?

Well, I guess I won't be stating anything groundbreaking, but in the B2B segment, especially in wealth management, it's pretty much the same routine. You talk a lot, listen carefully, and ask questions to formulate hypotheses and guesses. You continuously inquire, patiently present various options to clients, and kindly inquire about their thoughts.

We always strive to build relationships that interest not only us but also our potential partners, even if they're just potential for now. We took various steps, some relatively successful, others utterly futile to increase traffic and sales. We attended different conferences, which, on average, proved useful.

Our name became slightly more recognizable, transitioning from stealth mode to a more open and visible mode. We sent out newsletters, showcasing our startup and the deals we offer to everyone we've ever talked to about our venture. We wrote about it, talked about it, sought out people's opinions, and so on.

Overall, I can't say we're 100% satisfied with our marketing efforts. We're now beginning to develop some sort of marketing strategy. What else did we try? We attempted various LinkedIn campaigns, but they haven't worked out particularly well. Direct connections and networking through acquaintances of our acquaintances historically worked much better than anything else.

We tried forming partnerships with different bankers in various markets, which eventually led to some useful leads. However, primarily, those we found ourselves and managed to build somewhat long-term relationships with are the ones who ultimately show interest in what we do and are willing to engage with us. Some have even made their first deals with us.

Through our marketing efforts, we learned the importance of being highly selective about which events to participate in. Initially, we sought out inexpensive webinars with a targeted audience, but we stumbled upon some disappointing experiences. For example, one webinar organizer promised us a large turnout of private bankers and family offices. Still, it turned out to be much smaller than expected, and we couldn't continue communication with most of them afterward. This taught us the necessity of thoroughly knowing and understanding the reputation of those we collaborate with for marketing efforts. It also highlighted the importance of having clear contracts in place.

On the other hand, some conferences we attended worked out well, providing us with contacts and exposure, even if no immediate deals were made. We found that larger events tend to be more effective, but they need to be carefully targeted and chosen based on the audience.

As for social media and email campaigns, they haven't yielded significant results for us yet, so we've shifted our focus to maintaining a high-quality LinkedIn page and exploring opportunities for personal interactions through webinars and media engagements. We've abandoned chaotic email and LinkedIn blasts for now. Our current focus is on quality engagement rather than quantity.

How are you doing today and what does the future look like?

We closed our first two deals at the end of last year. This helped us gain confidence in the B2B market and showed that there is a need for what we have to offer. Particularly remarkable is that we achieved this before the end of our first year in the B2B segment.

While we're not yet profitable, given our second year since the start, this isn't unexpected. We're aiming to become profitable in 2024 and target a turnover of $30-50 million, which would make our platform profitable.

Our next steps involve developing platform technology and expanding into regions like Israel and Europe. Ultimately, our goal is to become a leading platform and cater to diverse financial institutions, such as banks, private wealth managers, family offices, and multi-family offices across different markets and product preferences.

Through starting the business, have you learned anything particularly helpful or advantageous?

Well, we've learned a lot. One of the key lessons, as Winston Churchill said, is to never, never, never give up. It's crucial to approach what we do with humor, self-critique, and resilience. Success, as Churchill noted - “Success consists of going from failure to failure without loss of enthusiasm”.

Emotional resilience, focus, and team support, without getting fixated on mistakes, are vital. Additionally, tolerance and patience, both with others and ourselves, especially in the face of initial failures, are crucial.

We possess a vast and diverse expertise within our small team, which is a rarity. Our understanding spans various aspects of the investment business, from M&A to structuring and securitization, enriched by our experiences as investors and startup founders. Our multicultural backgrounds also aid in navigating diverse cultural contexts and geographies.

Israel's multicultural environment fosters this understanding, given that many here have familial ties to various cultures. Lessons learned include the need for frugality, striving for tangible results, monitoring progress, and recognizing when to change course based on feedback and circumstances. It's essential to gracefully end partnerships that aren't aligning and maintain warm relationships.

What platform/tools do you use for your business?

We leverage a variety of tools. Firstly, we actively utilize DocuSign, a service for automating agreements and contract signings. It's seamlessly integrated into our platform, allowing participants to sign binding agreements right within our system.

I'm particularly fond of HubSpot CRM, which, as I'm discovering, offers extensive automation capabilities beyond just managing contacts and assigning statuses. It tracks tasks, synchronizes calendars, and sends emails or even Telegram messages to contacts who prefer them.

We also rely on Jira for task tracking, a vital tool for developers, although we might not use it as consistently as we would like. Figma is another essential tool for UX design.

Of course, we actively engage ChatGPT for various tasks, such as generating content, summarizing information, and more. Integrating its capabilities into our content-centric platform is crucial, considering its potential to save our team significant resources, despite any imperfections.

I am also that the only things that truly align with a person’s “self” are those that ultimately manifest into something successful.

What have been the most influential books, podcasts, or other resources?

Many books have greatly influenced me. I read "Zero to One," by Peter Thiel, and "Good to Great," by Jim Collins. "The Undoing Project" by Michael Lewis, which tells the story of Daniel Kahneman and Amos Tversky, is also one that I liked.

Speaking about Michael Lewis, “Liar’s poker” and "The Big Short" are also fantastic books. In one way or another, all these books explore how psychology influences our decision-making.

Continuing on this psychological theme, a book I find fascinating, although not directly related to startups, is "Your Brain at Work" by David Rock. I have great respect for Ray Dalio and his book "Principles". That's my list.

Advice for other entrepreneurs who want to get started or are just starting out?

A very important piece of advice is to be patient. On one hand, it is important to have high standards for ourselves, meaning being able to set clear goals and striving to adhere to them. On the other hand, it's crucial not to overly worry if things don't work out the first time.

In this regard, as we know, making a large number of small mistakes is much more beneficial and less detrimental to a young company than betting everything on zero, like when playing roulette, and then find out that zero did not come up. Therefore, constantly testing a large number of small hypotheses calmly and critically is necessary.

But if someone is just launching a startup and wants to do something, then perhaps the first thing to do is to go very deep, very deep within themselves.

I am appointed that startups and businesses that are created simply out of a desire to make money, prove something to mom and dad, or self that "I can be an entrepreneur" or to prove something to someone else will not work.

Therefore, before even starting a business, it's super important to listen to oneself and understand how much this is yours. Before starting a business, in my understanding, it's important to feel like this: that I can not do this because I feel it's my mission and I'm ready for endless experiments for it, to step out of my comfort zone. I will not even be stepping out of my comfort zone if I see my true purpose in doing something.

It's very important to go deeper if your goals are to create a unicorn or to show everyone that you understand this market better than others. If they sound like that, then you need to find the true, underlying goal and follow it, perhaps that's exactly it, that’s your mission and purpose.

It might be a bit philosophical approach, maybe for someone it sounds, I don't know, not quite rational, but I am also that only things that truly align with a person’s “self” are those that ultimately manifest into something successful.

Are you looking to hire for certain positions right now?

Right now, directly within the Ameetee team, we are not actively hiring. We understand that in the future, we would like to hire probably one or two developers. For now, we are managing freelancers and third parties who are completing certain technical tasks for us.

However, as the platform grows, we will need developers of various kinds. We need those who directly write platform functionality and those who can help us with machine learning because we defi to implement such tools on the platform in various areas.

On the other hand, the type of people we are actively seeking to invite on board are those who are crazy smart, highly knowledgeable, and very experienced advisors. They should specialize in dealing with financial institutions, understanding the intricacies of different markets, and comprehending the venture capital, private equity, and private debt sectors.

We also seek individuals with strong technological expertise and knowledge related to developing marketplaces. We would welcome such individuals, invite them on board, and want to see them as part of our team as we embark on the journey called "Ameetee."

Where can we go to learn more?

If you have any questions or comments, drop a comment below!