The New Backbone of Finance: Zero Hash's Adam Berg on Financial Services Infrastructure and Crypto

Run the Numbers

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The New Backbone of Finance: Zero Hash's Adam Berg on Financial Services Infrastructure and Crypto

CJ Gustafson

Nov 11, 2024

In this episode, CJ interviews Adam Berg, CFO of Zero Hash, about the evolution of financial services infrastructure and the role of crypto in accelerating this change. With Zero Hash’s clients including the likes of Stripe, Interactive Brokers, Franklin Templeton, Shift4, and BlackRock, Adam discusses the importance of blockchain, not just as an asset class but as a fundamental technology that enhances value transfer and settlement processes. He highlights the differences in business models within the fintech ecosystem and the critical need for balance sheet evaluation and liquidity management. Adam talks about the complexities of a B2B2C business model, the challenges and strategies of managing macroeconomic conditions as a CFO, and the importance of a resilient tech stack. He shares insights on the build versus partner framework and explains why he believes that margin compression and price optimization can actually hurt end users in the long run. You’ll also hear advice for anyone pursuing a career in finance as Adam reflects on pivotal career decisions.

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SPONSORS:

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Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning.

Operators Guild is where the best CEOs, CFOs, VPs of finance, and BizOps leaders in the business connect, network, and grow together. Built by operators for operators, this members-only community is home to more than 1000 of the most elite high-growth operators in the world. Experience connection and knowledge share with professionals who understand you like no one else does. Learn more and apply at operators-guild.com.

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@cjgustafson222 (CJ)

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TIMESTAMPS:

(00:00) Preview and Intro

(02:08) Sponsor – Mercury | NetSuite

(04:59) The Evolution of Financial Services Infrastructure over the Last 10 Years

(08:03) The Role of Blockchain Technology in This Infrastructure

(11:04) Investing in Web3 out of Belief in Future Versus Fear of Missing Out

(13:44) How Value Is Stored and Moved: Web3 or Inevitable Progress

(17:31) Sponsor – Operators Guild | Maxio | Leapfin

(21:01) The Dynamics of Operating a B2B2C Business Model

(24:53) Zero Hash’s Recurring and Reoccurring Revenue

(26:16) Macro Conditions and the Resiliency of the Tech Stack

(29:51) Why Zero Hash Minimizes Balance Sheet Exposure to Digital Assets

(32:12) Hedging in the Digital Asset Space

(33:18) The Bear Case for Crypto

(35:15) Build Versus Partner Frameworks

(40:33) How Margin Compression and Price Optimization Can Hurt End Users

(45:15) Long-Ass Lightning Round: A Life-Changing Phone Call

(50:57) Finance Software Stack

(52:47) Craziest Expense Story

Discussion about this podcast

Run the Numbers

Run the Numbers is a twice-weekly podcast about financial metrics and business models, designed for ambitious people operating tech startups. It's a collection of things host CJ Gustafson (CFO at Partstech and writer of Mostly Metrics) has learned and thought about in the trenches as a tech CFO.

This show is meant to serve as a playbook of sorts for the stuff CJ wishes he knew earlier in his career, both from experience and from copying people smarter than himself.

Topics frequently touch upon Startup SaaS Metrics, Annual Budgeting, Financial Forecasting, Headcount, Equity, Dilution, and Fundraising – and how all of these drive business performance and growth.

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