Monica Brand Engel: A Trailblazer in Fintech Investment
Monica Brand Engel’s journey in the world of finance and venture capital is a testament to the power of innovation and the importance of inclusivity in financial services. Starting her career in Silicon Valley, Engel has navigated through various roles that have shaped her into a leading figure in the fintech landscape, particularly for underserved markets.
Early Career in Silicon Valley
Engel’s professional foundation was laid in the heart of Silicon Valley, where she was immersed in a culture of entrepreneurship and technological advancement. Graduating from Stanford’s business school during the late 1990s, she entered the workforce just as the internet boom was gaining momentum. This environment instilled in her a "can-do" spirit, emphasizing risk-taking and the strategic use of capital to address complex challenges.
Her initial roles involved working with alternative lenders focused on the small business sector. This experience not only honed her operational skills but also deepened her understanding of the financial needs of underserved communities. Engel’s transition from the operating side to venture capital was marked by her tenure at a South African venture capital firm, where she began to explore the intersection of finance and technology on a global scale.
Founding Quona Capital
As co-founder and partner of Quona Capital, Engel has taken her vision for financial inclusion to new heights. Quona Capital, based in Washington, D.C., is an investment manager dedicated to fintech opportunities aimed at the unbanked populations in Sub-Saharan Africa, Latin America, and India. The firm leverages a strategic partnership with Accion, a global leader in microfinance, to manage the Accion Frontier Inclusion Fund and Frontier Investments—pioneering global fintech funds focused on financial inclusion.
Engel’s motivation for establishing Quona stemmed from her experiences in retail financial institutions, where she recognized the limitations of traditional microfinance in expanding access to quality financial services. This realization led her to believe that investing in fintech could be a more efficient and scalable solution.
Investment Focus and Market Opportunities
Quona Capital manages over $360 million in assets across its flagship funds, attracting a diverse range of international investors, including development finance institutions and Fortune 500 companies. Engel emphasizes that the firm’s investment thesis is compelling, particularly in light of the COVID-19 pandemic, which has accelerated the demand for technology-enabled financial services.
The pandemic has highlighted the necessity for virtual transactions, making fintech solutions more relevant than ever. Engel notes that despite varying impacts across different markets, Quona’s portfolio has generally seen positive performance, reflecting the resilience and adaptability of the companies they invest in.
Evaluating Entrepreneurs for Investment
At Quona, the selection of entrepreneurs is a critical factor in the success of their investments. Engel identifies key qualities that the firm looks for: vision, resilience, domain expertise, and emotional intelligence. However, she also emphasizes the importance of local connections. Entrepreneurs who have lived and worked in their target markets bring invaluable insights and relationships that can significantly enhance their chances of success.
Moreover, Quona seeks entrepreneurs who align with their "profits-with-purpose" ethos, aiming to create companies that improve access to financial services for underserved populations. This alignment is crucial for fostering sustainable growth and impact.
Women in Fintech and Venture Capital
Engel’s insights extend to the current landscape for women in fintech and venture capital. She acknowledges that both industries have historically underrepresented women, particularly in leadership roles. However, she observes a growing commitment among companies to address gender parity. Many firms are now actively tracking and reporting on gender diversity, implementing mentorship programs, and creating inclusive environments.
Engel believes that intentional efforts to attract and retain women in fintech are essential. She encourages women to master their trades, seek mentorship, and prioritize their visibility within their organizations. By doing so, they can position themselves for leadership opportunities and pave the way for future generations.
Advice for Female Entrepreneurs
For women and people of color aspiring to break into underrepresented fields, Engel offers three key pieces of advice:
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Master Your Trade: Building domain expertise is crucial. Delivering consistently high-quality results can set individuals apart in competitive environments.
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Find a Mentor: Mentorship can provide invaluable guidance and support, helping individuals navigate pivotal moments in their careers. Engel emphasizes the role of mentors in building confidence and providing a sounding board for decision-making.
- Prioritize and Position: It’s important for women to not only excel in their work but also to ensure that their contributions are recognized. Engaging in professional development and being proactive about visibility can help in achieving career goals.
Engel’s journey and insights reflect a commitment to fostering innovation and inclusivity in the fintech sector, making her a pivotal figure in shaping the future of financial services for underserved communities.