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Dmytro Lokshyn

With the <a href="https://www.statista.com/statistics/893954/number-fintech-startups-by-region/">number of fintech startups growing</a> every year, it’s safe to assume that this is where the world is at. Each business that you own is an experience, a chance that helps you grow as a seasoned professional. Investables was my experience, a great step that added to my growth and prepared me for the next chapter of my life: Stockpile Inc.
That being said, building a business is not as easy as it sounds. There are challenges that you need to overcome and lessons to be learned. In this article, I will present my journey with Investables so that other business owners may feel encouraged to take the leap.
<h3>Who is Dmytro Lokshyn?</h3>
With around 8 years of experience when it comes to startups, my name, Dmytro Lokshyn, became quite known in the Fintech industry. From the very beginning, I had a passion for investments, especially in physical assets. Many young investors were <a href="https://www.cnbc.com/2022/10/12/young-wealthy-investors-are-turning-to-alternative-investments.html">shifting their attention</a> towards this type of investment, and I was one of them. I also noticed that the higher the demand was, the greater the value of the asset would become, leading to profit.
The main problem was that the average person could not afford to buy an entire asset, especially if they had a lower income. My startup, Investables, was created as an answer to their problem. While fractional ownership is nothing innovative, the concept is still relatively new when it comes to the investment world, which is why I decided to expand on it.
<h2>The Creation of Investables</h2>
Investables started more or less as a “couch idea” in February 2022, just as the war began brewing. It seemed like bad luck that the moment we got this idea, the world seemed to go off its hinges, but I figure there are two kinds of people: those who wait on periods of uncertainty doing nothing, and those who take control over their future. We decided to make the most of what we had.
<h3>1. The Discovery phase</h3>
Three minds worked on this project, which was I (<a href="https://www.linkedin.com/in/dmytro-lokshyn/" target="_blank" rel="noopener">Dmytro</a>), <a href="https://www.linkedin.com/in/oleh-shkinder/" target="_blank" rel="noopener">Oleg Shinder</a>, and <a href="https://www.linkedin.com/in/victor-shalhinov-0ba817148" target="_blank" rel="noopener">Victor Shalhinov.</a> It would take a while until we obtained all the data necessary, especially since we needed the funds and qualifications. It would take months for that to happen. Up until that moment, however, we would do research on what it would take to make this fintech a success.
First, we had to study our competition and find a product market fit (PMF). We decided to go for alternative investments for retail customers. That being said, to operate as a fractional investment platform that dealt with physical assets, we also had to get SEC qualification.
A lot of paperwork was involved, but by the beginning of October, we succeeded in getting that qualification. Later on, we also received FINRA approval which allowed us to launch. By May, we succeeded in securing funds from two angel investors, which allowed us to create the foundations of our business.
<h3>2. The launch phase</h3>
The launch was met with a fair amount of positivity. While we were still closed off to retail investors as a result of high entry costs, users appreciated that they could track investments in their portfolio, along with their condition. Still, the launch told us that we needed to pivot towards <a href="https://www.mindtheproduct.com/secrets-to-successful-b2b-product-management-part-2/" target="_blank" rel="noopener">B2B</a>, as the market was not as saturated as the B2C sector.
We eventually opened to retail investors, which significantly increased traffic to our platform. After the launch, we connected with various other fintech businesses, noticing that the market penetration was easier compared to when we’d go after consumers. This was mostly because, in 2022, individuals were focusing on other problems (i.e., a continuing war) instead of alternative investments. This action also opened our eyes to business customers, triggering our expansion.
<img decoding="async" src="https://www.mindtheproduct.com/wp-content/uploads/2024/02/fcf220d1-605b-4ea5-8f4a-5189462027a1_Updated.jpg" />
We decided that the best way to succeed was to create an API platform that would connect other businesses with alternative investment opportunities. We realized that attracting retail customers was fairly expensive, which is why we shifted our focus to helping other businesses reach and retain clients. This turned into a more profitable choice, as we no longer had to invest in money-consuming marketing.
Eventually, Oleh and I managed to leave the country, whereas Victor and the rest of the team remained scattered across Ukraine. This eventually gave us more worldwide coverage and we managed to expand our reach.
<h3>Key successes and learnings</h3>
From the start of Investables to the acquisition of Stockpile, we came across different challenges and successes. Each step of the business played a significant role, as not only did we succeed in increasing our business knowledge, but we also managed to grow personally.
<h3>Launching in the US and expansion to Stockpile</h3>
When the idea started, we only planned to launch in the UK as an NFT platform. Eventually, we got enough approvals to launch in the United States. The company began growing as a B2B, with investors switching from regular stocks to fractional investments.
Obtaining and sticking to regulations can take time, and if you are unfamiliar with the field, there are a lot of regulatory overheads that can throw you off. It can take 6 months or more to complete the B2B lifecycle or even more, with Investables itself taking about half a year. What I learned during this stage is that the fewer regulations you try to build with, the less time it will take, and the less money you will spend in the process.
After exiting Investables and moving to Stockpile, I also learned that the M&amp;A process can take a lot of time and resources. The procedure takes 4 months at least and requires a lot of people to complete it. This is why fully trusting your partners and employees is very important, as each of them has a role to play.
Moving towards B2C also means that you need to be very cautious when you are spending money. Unless you have millions of dollars in your account, even starting the business can be very difficult. My experience with Investables allowed me to gather a decent enough capital so that I can move forward in my next step of the journey.
<h3>Overcoming crises</h3>
During the building of Investables, I faced plenty of challenges that sent them into financial crises. Inflation was one of the biggest issues, as the increase in prices reduced the potential profits. This price boost also led to lower appetites in the investors, causing them to no longer invest in NFTs. Money itself became more expensive and getting out of these financial predicaments seemed near impossible.
These crises were also made worse because we were running a business in the middle of the war. The war in Ukraine had a <a href="https://www.economicsobservatory.com/ukraine-whats-the-global-economic-impact-of-russias-invasion">massive global economic impact</a>, not only nearly destroying the country’s economy, but that of the entire world as well. This caused people to be skeptical about investing in the long term, as they did not know what it would bring.
Remaining in contact would also prove difficult as the war progressed. With <a href="https://www.linkedin.com/in/victor-shalhinov-0ba817148/" target="_blank" rel="noopener">Victor Shalhinov</a>, our chief technology officer and co-founder, being quite close to the battles and the rest of the team being stationed near Dnipro and Kiyv, the connection would constantly go off. This led to a lot of uncertainty: was everyone all right? Were we able to go forward?
To make things work, we sourced generators that we could use for power and the Internet, keeping contact going. Alarms were blaring, fighter jets would constantly be heard around our colleagues, but we didn’t give up. Our team was dedicated to succeeding, which is why we did not take a day off in one year.
<img decoding="async" src="https://www.mindtheproduct.com/wp-content/uploads/2024/02/994e14b9-50f5-4016-bcb1-04505e00a887_Zoom20Team20Picture.jpg" />
<h3>Setting goals</h3>
One key part of building a Fintech business is to set goals and stand firmly by them. Very often, the goals we set were rather unorthodox and unlike anything you may see in other businesses. It was a great risk. However, this kind of thinking is what pushes businesses further, as it takes you out of the ordinary and allows you to stand out. That being said, each risk needs to be calculated, which is why discussing matters with your partners is important.
Out-of-the-box thinking is also crucial. You must learn to read between the lines and follow the market. If you have an investment platform, consider what the customer wants to focus on. This year, they may choose to invest in Batman Rolexes. Next year, they may choose to invest in a Russian tank.
The latter remains a goal of ours: getting a burnt Russian tank from Ukraine and setting it for auction. All the money obtained from it would be donated to people who need it back home. Right now, this is not quite achievable, but once things settle, we believe this might be a success. Running a Fintech is not about having the same ideas as others – it’s about having ideas that set you apart.
<h3>Purchase of Stockpile Inc.</h3>
After the success of Investables, I decided that it was time to move forward and exit the business, purchasing Stockpile Inc. Originally founded in 2010, the company held a lot of promise, allowing people to easily begin investing in cryptocurrencies and the stock market.
This acquisition was a new chapter in my professional journey, as it allowed me to work with more than NFTs. Using the experience I gained with Investables, I shifted my focus to growing and enhancing Stockpile. Using my expertise and strategic vision, along with my commitment to the cause, I leveraged the industry-leading expertise that the company already had.
With Stockpile, I could empower the investors to make an informed decision while teaching them more about alternative investments. My goal was to make as many significant strides in the financial world as possible. My clientele also changed, which is why I shifted from B2B to B2C.
<h2>The bottom line</h2>
Building a fintech business can bring a lot of challenges, many of which are not always under your control. However, with a good strategy and a fresh mind, each startup can be a stepping stone for something greater. You just need to have a mind for it.

A case study: Building a fintech in 2022 and exiting it

Dmytro Lokshyn

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