Innovating Investment Management
09 October, 2024
The Future of FinTech Disruption: A Conversation with SilverTide Financial’s Leaders on FinTech Focus TV
In the latest episode of FinTech Focus TV, host Toby Babb brings you an insightful and dynamic conversation with Itay Desau, the CEO of SilverTide Financial, and Kirill Egorov, Head of Quantitative Analytics at the company. This episode is a deep dive into how the disruptive power of technology and focused leadership is transforming the FinTech space, particularly within trade analytics for hedge funds.
At Harrington Starr, a leading technology recruitment business, we specialise in placing top-tier talent in the financial and technology sectors. This episode not only highlights SilverTide’s remarkable journey but also showcases the importance of building the right team to drive innovation and disruption in the financial technology sector.
Disruption in the FinTech World: The Genesis of SilverTide Financial
The conversation kicks off with Toby Babb introducing Itay Desau and Kirill Egorov, who share the fascinating story of how SilverTide Financial came to be. Desau, having spent over 25 years in the finance industry, including senior roles at Deutsche Bank, recognized that the future of finance was rapidly changing due to waves of technological disruption. Along with Kirill Egorov, who brought two decades of experience in data analytics and financial modelling, the pair saw an opportunity to create something new—a FinTech company that could disrupt the way hedge funds analyse trade data.
SilverTide Financial leverages cutting-edge technology to deliver trade analytics software that provides insights and dimensions of market analysis that were previously unavailable to their clients. The software’s ability to help traders navigate financial markets through advanced data insights is a game-changer, and it all stems from a relentless focus on disruption.
According to Desau, the decision was clear: "In finance, you're either the disruptor or the disruptee." The conversation dives deep into how this mindset has fueled SilverTide’s aggressive growth and profitability from the very start.
Achieving Profitability in Two Years: The Startup Playbook
A key theme of this episode is SilverTide Financial's impressive growth trajectory. Unlike many tech startups that struggle to turn a profit, SilverTide was able to achieve profitability within its second year. Itay Desau and Kirill Egorov credit this rapid success to a laser-focused approach on two critical areas: balance sheet management and aggressive decision-making.
Desau explains that when you're bootstrapping a startup, managing your cash flow is paramount. For SilverTide, this meant making tough, daily decisions that would prioritise cash flow and ensure profitability as quickly as possible. The company’s balance sheet management became the guiding light for all other decisions, and the results speak for themselves. By year three, SilverTide had doubled its top-line revenue and profitability compared to the previous year, positioning the company for even faster growth.
What makes this episode particularly valuable for anyone in the FinTech or technology space is the clear, actionable advice Desau provides. He stresses the importance of focusing on the highest-growth decisions every single day. By ruthlessly prioritising decisions that drive revenue and profitability, SilverTide has been able to maintain its lean structure while delivering superior results.
At Harrington Starr, we understand how crucial it is for growing FinTech companies to have the right talent in place to make these kinds of strategic decisions. This episode serves as a blueprint for FinTech leaders who want to scale their operations and build a culture of innovation and disruption.
Building Disruptive Technology for Hedge Funds
One of the most exciting parts of this episode is the discussion around SilverTide’s trade analytics software, which is built on cutting-edge technologies such as big data, AI, and advanced database engineering. According to Kirill Egorov, the company’s software provides hedge funds with dimensions of market analysis that are not available anywhere else.
As Toby Babb points out, SilverTide’s ability to disrupt the market by offering something completely different sets it apart from competitors. Rather than simply improving existing systems, SilverTide is creating entirely new ways for hedge funds to analyse data. This has made the company a standout in a space that is traditionally very linear and antiquated in its approach to technology.
The software has been designed to help hedge funds quickly make sense of complex financial markets through intuitive, data-driven insights. This disruptive approach has not only helped SilverTide attract a growing list of clients but has also given them a conversion rate that Itay Desau describes as "insanely high." Almost every client who sees the software ends up engaging with it in some form, which is a testament to its disruptive power.
The Secret to Scaling: Hiring the Right Team
A key takeaway from this episode is the importance of building the right team. For SilverTide Financial, the ability to scale and grow rapidly has been made possible by hiring talented individuals who are aligned with the company’s mission of disruption.
Itay Desau and Kirill Egorov share their approach to hiring, which is heavily focused on quantitative analysis. As a quantitative firm, SilverTide applies the same principles to its hiring process as it does to its trade analytics. From the moment a CV is received, the company has a structured process in place to evaluate candidates based on specific risk factors and success indicators.
As a technology recruitment business, Harrington Starr understands the value of this approach. Hiring the right talent is critical for any company looking to disrupt its industry, and SilverTide’s structured and data-driven process ensures that they bring on board individuals who are not only skilled but also a good cultural fit.
Additionally, Kirill Egorov emphasises the importance of having a distributed team. SilverTide’s team is spread across multiple countries, including the UK and Eastern Europe, which has allowed the company to find the best talent without being constrained by geography. This remote setup has not only helped the company scale faster but also allowed them to manage costs effectively.
A Culture of Innovation and Experimentation
One of the recurring themes in this episode is SilverTide’s culture of innovation and experimentation. Kirill Egorovexplains how the company encourages its employees to be brave and try new things, even if they fail. This culture of risk-taking is a crucial element of the company’s success, as it allows them to constantly push the boundaries of what is possible in trade analytics and FinTech innovation.
As a technology recruitment business, Harrington Starr knows that fostering a culture of innovation is essential for attracting and retaining top talent in the industry. In a world where technology is evolving at a rapid pace, companies that encourage experimentation and reward risk-taking are the ones that will succeed in the long term.
Looking to the Future: Scaling and Investment
As the episode draws to a close, the conversation shifts to SilverTide’s future plans. With profitability already achieved, the company is now focusing on scaling its operations and attracting investment. Itay Desau and Kirill Egorov discuss how they plan to take the company to the next level by securing Series A funding to accelerate growth.
Interestingly, despite the competitive environment for raising capital, SilverTide Financial has found itself in a strong position due to its profitable model. Investors are increasingly attracted to companies with strong cash flow, and SilverTide’s focus on balance sheet management has given them an edge in these discussions.
The company is now looking to scale its operations globally, adding more products, markets, and currencies to its platform. Kirill Egorov hints at exciting developments on the tech side, including the integration of more AI components and a broader range of solutions for hedge funds.
Conclusion: Lessons for the FinTech and Technology Industry
This episode of FinTech Focus TV is a must-listen for anyone in the FinTech or technology space. Itay Desau and Kirill Egorov offer invaluable insights into how to build a disruptive company from the ground up, achieve profitability quickly, and scale in a competitive market.
At Harrington Starr, we are proud to support FinTech and technology companies by helping them find the right talent to drive innovation and disruption. Whether you're a startup looking to scale or an established company aiming to stay ahead of the curve, the lessons from this episode are applicable across the board.
If you’re interested in hearing more about SilverTide Financial’s journey, tune into this episode of FinTech Focus TV and discover how they are transforming the future of trade analytics for hedge funds.
