BankerBay connects qualified corporate deals with institutional providers of capital around the world. Startup BankerBay has recently raised $2 Million in seed funding and announced opening of its third office, in New York. Here is our recent interview with Romesh Jayawickrama, CEO & Co-Founder of BankerBay:
Q: How did the idea behind BankerBay come about?
A: BankerBay was the result of many years of frustration – frustration working within the inefficiencies and business models at the large banks, then even more frustration running my own boutique IB firm. The experience over the course of my career illustrated one thing very clearly – that the way deals are originated from the corporate world hasn’t changed in literally hundreds of years and that the bottlenecks were all based on the inherent limitations of human capital and the way information is gathered. This led to the vision to disrupt the traditional investment banking space, using technology to reform parts of the dealmaking value chain. With technology, we can free up the human capital currently being used for unnecessary early heavy lifting for more focus on the transaction activities requiring complex financial acumen. It would not only reduce the usual deal timelines, but also bring more efficiencies and parity in the system, which is currently overly dependent on just relationships. Needless to say, this would result in significant capital savings, greater value being added in all areas of the process, better results for the clients and more efficient deployment of human capital by the banking industry.
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Q: Tell us something more about the company and your proprietary technology?
A: There were already deal platforms in existence that have been connecting deals and investors. However, BankerBay has adopted a significantly different approach than its peers in following ways:
a. BankerBay is truly global with significant deal flow from all parts of the world. We have no geographic concentration and attract users from across all countries. Other platforms have a major geographical focus with deal flow concentrated in a region or just one country in many cases.
b. BankerBay has strong focus on quality and has an entire team of Transaction Management Analyst (TMA – all IB analysts from the top schools and IBs) in place to verify and validate the deals. Each deal submitted to our platform undergoes a stringent verification process and is accepted ONLY if and when it meets our institutional standards for quality.
c. BankerBay works on an entirely no-name and confidential basis, where each user has total control of who sees what and when. Technology is used extensively while screening and culling through potential deals for investors. BankerBay has developed complex algorithms to screen matches for a user, thereby saving a significant time and effort for the user. Searching on the other deal platforms is a user-initiated process- they have to search with keywords every time they have any requirements. BankerBay asks user’s preference only once and then updates them about the matches.
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Q: You’ve recently announced $2 million in seed funding. What are your plans?
A: We have built, upgraded and now refined our product and processes, the result being our next generation release, which is a robust and sustainable platform processing billions of dollars of institutional quality deal throughput each month. This next leg of investment is all about selling the product into each of the key financial centers of the world, with New York being the most important to us right now. We are already looking at London as the next office to open.
Q: Who is your ideal customer and why?
A: Anyone who is looking to make mid-market (USD 10mn -250mn) size investments into non-listed companies. Those could be investment banks that look at mid-market advisory work, M&A, Private Equity funds that invest in similar size corporate capital raises, and of course the corporates themselves who wish to directly run their own capital raising process and/or be connected to the most appropriate and qualified bankers for that transaction (and not the just the ones they already know). The mid-market is the fastest growing and largest segment of the transactional world, and it is also the most fragmented segment where information is scattered and highly inefficient to find.
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Q: What can we expect from BankerBay in next six months?
A: BankerBay is continuously innovating to facilitate a smoother and convenient transaction process. We plan to roll out following features in medium term:
a. Mergers & Acquisitions Vault – With an increase in the M&A deals on BankerBay, the market has clearly requested a premium version of the service from us that provides a first look at certain key opportunities. So we have created an M&A Vault which will enable M&A focused users to get exclusive access to a subset of the global M&A deals.
b. Specialized marketing campaigns – BankerBay members can request bespoke marketing campaigns for their deals to promote them to wider sets of investors.
c. Direct messaging facility – Users will be able to send real time messages to counterparties they have been introduced to.
Last Updated on October 30, 2015Activate Social Media: