New Tech20 High Growth Group to Tackle Fast-Growth Themes
Meeting sponsor Bank of the West to discuss banking best practices for fast growing techs.
Fast-growing tech companies present a unique challenge for both treasurers of those firms and the banks that service them. That’s because by their very name, “fast growth,” they are veritable fast-moving targets when it comes to services. And what works today may likely not work tomorrow.
It’s therefore incumbent upon treasurers to think hard about what banks they partner with so that a year into that relationship, they haven’t outgrown it. So treasurers of fast-growth, middle-market companies have perhaps greater challenges than usual when it comes to banking relationships.
Members of NeuGroup’s Tech20 High Growth peer group will meet to delve into this topic and more at the group’s October 11, 2018 meeting in Santa Clara, CA.
Andreas Bubenzer-Paim, Managing Director & Head of Technology Banking, Bank of the West/BNP Paribas, who will present in several sessions, says treasurers need to have a good banking strategy and choose a partner that can provide comprehensive services.
“If you’re in a fast-growing sector, you really need to take a minute, step back and think about what you are doing,” says Mr. Bubenzer-Paim. This means they should consider “which markets am I going into? At which rate am I going into these markets, and whatever I decide to do now, am I willing and happy to live with that structure and set up for the next 5-10 years?”
Mr. Bubenzer-Paim gives the example of a company quickly expanding globally into several different markets at once. “You might be entering several countries in a single quarter or maybe even a single month,” he says. “Yes, you want to open accounts quickly, because without the accounts you can't operate in those countries; you need to be able to pay payroll, you need to be able to pay your vendors, and you need to accept customer payment.”
But in the rush to get things up and running in 20 countries, “you really don't want to end up … working with 20 to 30 banks” and their respective onboarding processes and online banking systems. This is the point where those treasurers need to step back and think about their banking strategy. “Shouldn't I pick a bank that has a global platform” that would cover at the very least 80% of the countries the company wants to enter. “As a treasurer, my life is going to be so much easier.”
For its clients, Bank of the West/BNP Paribas, which has been advising technology companies for more than 30 years, offers a local/global approach where a local advisor dedicated to the technology industry helps the company dealing with the complexities of going global, offering access to the bank’s full global services.
At the coming meeting, members of the group will get an update on US tax reform from E&Y and members who have been making adjustments already, as well as a look at post-reform global structures that work. They will also delve into creating a treasury vision and mission statement that aligns with the business, as well as the importance of articulating treasury’s value-add in the context of the corporate vision and mission statement.