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An Interview with James D. Robinson III, General Partner and co-Founder, RRE Ventures

EDITORS’ NOTE Jim Robinson also We’re also a major participant in The city must also be business-ready; this serves as a director of OnDeck Bitcoin and the Block Chain, which is an- means less red tape and restrictions that discour- Capital, and sits on the private boards other example of technology that can be age business from starting here or remaining here. of a number of portfolio companies, in- both disruptive and dynamic in enhanc- In NYC and elsewhere, we all face the burden of cluding Credit, Chain, ing the reach and productivity of existing costly overhead born in the era of overregulation CoverHound, K2 Intelligence, and companies. from Washington. NerdWallet. Additionally, he serves The worlds of digital commerce and Are growth sectors or management more as President of J. D. Robinson, Inc. targeting discrete audiences through ad important when you look at opportunities for He was Chairman and Chief tech are also fascinating to observe, as is next-generation companies? Executive Offi cer of the world of alternate lenders, like Avant When push comes to shove, it’s about the Company from 1977 to 1993 and Credit, a Chicago-based company that management team and their passion: Do they have Non-Executive Chairman of Bristol- makes formulaic loans to individuals un- a sense of the marketplace? Are they focused? Can Myers Squibb from 2005 to 2008, James D. Robinson III derserved by banks. they execute? where he sat on the board from 1979 We are uniquely well-positioned to Of course, not all of that is neatly buttoned to 2008. Previously, Robinson held several execu- observe changes in the technology space because up. We make bets on the individual and on the tive positions within American Express, was a gen- we spend our days meeting with entrepreneurs idea. Top entrepreneurs have the ability to build eral partner with White, Weld & Co., and served as and we make our money by understanding cur- successful businesses even when to do so requires Assistant to the Chairman and President of Morgan rent market conditions, having an educated opin- changing direction or pivoting away from an origi- Guaranty Trust Company. He also served from 1975 ion, and making decisions based on what the nal idea. We bet on ideas knowing that they might to 2015 as a director of The Coca-Cola Company. future might bring. need to be scrapped or recreated, and we bet on He is the Honorary Chairman of Memorial Sloan- Do fi nancial companies need to focus as people we trust to make tough choices and build Kettering Cancer Center; an Honorary Trustee of much on technology as they do on business? great companies in a constantly changing world. The Brookings Institution; and Chairman Emeritus The strength of traditional fi nancial businesses Is it possible for large institutions to re- of the Partnership for City and the World is not going away, but many companies are now main entrepreneurial once they’ve grown Travel & Tourism Council. Robinson holds an facing the reality that they will have to change their past a certain size and scale? M.B.A. from Harvard Business School and a B.S. own business models in order to remain relevant Sure it’s possible, but it’s hard. Big companies from Georgia Institute of Technology. in a rapidly changing world. have to make sure they don’t become so bureau- For the large commercial banks, for example, cratized that decision-making, accountability, inno- COMPANY BRIEF Since its founding in 1994, the question has become, “What is the value add vation and risk technology are stifl ed. Naturally, RRE Ventures has worked alongside talented man- of a lot of branch offi ces?” It used to be that it was big companies struggle with this, but so do smaller agement teams and has helped to build industry- personalization at the local level, but now there is companies. Both need to guard against the arro- leading companies. The firm now manages even greater personalization through direct links to gance of success. There can be a temptation to say, $1.5 billion in assets dedicated to investment in ubiquitous smart mobile devices. Banks that em- “We’re on top of the world, we don’t need to change early-stage technology companies. RRE’s investment brace changing customer behaviors will be winners what we’re doing.” Nothing is more dangerous to a professionals focus on rapidly growing markets in in the future. The companies that will be left behind company’s success than this type of sentiment. the information technology, software, communica- are those in denial about the world in which they Do large NYC companies take any leader- tions, and fi nancial services industries, and back now are forced to do business. ship role in embracing the high level of ven- entrepreneurs and management teams that possess Is business-friendly and ture investing and tech start-ups in the greater industry knowledge, discipline, and vision. should more be done to ensure it remains a Metropolitan area? global leader? They do, indeed. One example is the FinTech How has RRE been positioned over the past It’s clear that New York is one of the premier Innovation Lab, created by the Partnership Fund 20 years to observe the economic changes that places in the world for the best talent that one can for New York City and Accenture in 2010. This is a are taking place? get anywhere. New York City has a deep talent 12-week mentoring program designed to enhance Since founding RRE over 20 years ago, my base of engineers, bankers, advertising, communi- FinTech innovation and drive high-tech job growth partners and I have had ringside seats to the growth cations, and media people. NYC is where fi ve in New York City by connecting start-ups with de- and development of New York’s tech and innova- of the seven biggest industries in the country are cision-makers at some of the world’s leading fi nan- tion culture. headquartered, and where a lot of the customers cial institutions. We’ve watched changes in the tech land- are, so it’s where the building blocks are. Innovation doesn’t happen solely in a board- scape as investors in companies like OnDeck But New York City must work to continue to room, solely in a community workspace, or solely and Wisdom Tree, in BuzzFeed and Business be competitive. It must remain able to attract the anywhere else. The more entrepreneurs and inves- Insider, and in the Skimm. These are compa- best talent and keep it here. That means the city tors, government offi cials and innovators, start-ups nies that target discrete audiences and package has to be a safe place to live and work, and it must and large companies alike can work together, the information in a way previously unavailable to have schools that are capable of providing the best faster technology will advance and the more each consumers. education available. and every member of our community will benefi t.• 172 LEADERS POSTED WITH PERMISSION. COPYRIGHT © 2015 LEADERS MAGAZINE, INC. VOLUME 38, NUMBER 4