Why concentration risk is a fallacy for investors looking at B2B Fintech Infrastructure companies
Well articulated @chia. In my experience, the concentration with specific customers is inevitable in the fintech and in particular B2B model. This is a nascent industry. Also, the concentration happens becoz smaller client may scale up quite fast. I as an entrepreneur have to help the client scale and be part of that journey. Team and i learn new ways of supporting bigger clients with evolving complexity. This helps acquire skill sets to acquire new type of clients. It is a constant balance between tech improvement and human engagement. As long as i can show directions approach to mitigate risks that arise out concentration, mature investors get it.