Arunkumar Krishnakumar: Shaping the Metaverse, Transforming Digital Finance

Early in our conversation, Arunkumar Krishnakumar brought up the Indian concept of gyan, or wisdom. It was a fitting reference: in the world of fintech and digital innovation, Arun has carved out a space in which he not just personifies this wisdom but communicates it to others. And within his story lies a reminder of the power of knowledge and the impact of sharing it.

With over two decades of experience in retail, investment banking, hedge funds, and consulting, Arun has emerged as a key player in the dynamic world of digital assets, DeFi, and fintech. His expertise isn't locked in the echo chambers of tech jargon. Instead, it flows freely, reaching those grappling with the complexities of this ever-evolving digital age.

Take, for example, his motivation for co-authoring The Metaverse Economy with Theodora Lau. "I was giving a lot of gyan to people about the misconceptions in the space... so we thought, why not write something about it?" he says. This decision, far from impulsive, was a deliberate step towards demystifying a convoluted topic, making the elusive understandable.

His books, including Quantum Computing and Blockchain in Business and Restartup: A Founder's Guide to Crisis Navigation, are more than mere collections of words on paper. They represent Arun's unique ability to distill complex concepts into digestible, engaging narratives. The Metaverse Economy, in particular, is a journey into the future of digital interaction, co-authored with Theo in a synergistic blend of expertise and perspective. Arun's explanation of their collaboration, "It brings down the burden... It's much more of a team player mode than a solo play," speaks volumes about his approach to innovation and knowledge sharing - it's collaborative, inclusive, and forward-thinking.

Recognition has naturally followed Arun's contributions. He's been honored as a Top 100 Fintech Influencer, celebrated among the Top 100 Asians in UK Tech, and esteemed as a Top 100 Social Leader in ESG Investing.

Beyond the accolades, Arun's real impact is in his role as a mentor and advisor. His tenure at Green Shores Capital and Bullieverse as Chief Strategy Officer has been marked by insightful leadership and a knack for identifying and nurturing potential.

In his own words, writing a book is a journey, a sentiment that aptly describes his career. From quiet beginnings to becoming a loud voice in the fintech world, Arun's story is one of relentless pursuit, constant learning, and a genuine desire to demystify the complex world of digital finance.

Arun zeroes in on what he considers the most significant transformation yet to fully unfold: blockchain and digitization. "To me, that's going to be the biggest transformation," he says, envisioning a finance world where transactions and settlements are instantaneous, thanks to blockchain technology. This, he believes, will unlock new business models and operational efficiencies.

Reflecting on the past, Arun recalls the shift from paper-based finance to digitization. But it's the fintech boom in Asia and Africa that really captures his enthusiasm. "I've witnessed financial and digital inclusion... I didn't expect that kind of penetration in such a short span of about 10 years," he shares, highlighting the integration of financial services with lifestyle businesses as a key innovation driver.

However, Arun also acknowledges the shortcomings. "I don't think Fintech in the West has delivered what it was hyped to," he notes, pointing out that while user experience has improved, fundamental issues like financial inclusion haven't been fully addressed.

In his almost a decade of founding funding organizations, Arun shares candid insights. "It's a marathon, not a sprint," he advises, emphasizing the long-term nature of venture capital. He reflects on his experience as a minority founder in the UK, stressing the importance of trust in business and the unfortunate reality of familiarity and similarity biases in fundraising.

Navigating the intricacies of fundraising, Arun shares a crucial insight: it's about softening potential investors, a task that requires subtlety, strategic networking, and continuous engagement. "Don't approach fundraising like a coding task," he advises. "It's an ongoing exercise." He emphasizes the need to familiarize oneself with potential investors, suggesting a proactive approach to build relationships well before pitching.

In a world where familiarity and similarity often dictate investment decisions, Arun underscores the power of quality content and market analysis in establishing credibility. "When you throw really high-quality content...that's credibility, instantly established," he asserts. This strategy, he explains, can help overcome initial biases, shifting the focus to the merits of the business proposition.

On becoming a leader, Arun reveals it was more a byproduct of his primary focus: raising his fund and establishing credibility as an investor. His rise as an influencer emerged from creating impactful content, sparking discussions, and engaging with his audience. "It was more of a byproduct of what I was doing elsewhere," he shares.

Arun also highlights the responsibility that comes with being an influencer. He stresses the importance of maintaining an open mind, as today's trends can swiftly evolve into tomorrow's norms. "Change is a constant," he notes, cautioning against taking polarized views and stressing the need to be receptive to new and emerging trends. "Innovation often looks pretty shaky at the start," he reminds us, emphasizing the importance of patience and open-mindedness in the face of evolving trends.

As I spoke with Arun, it became clear that his approach to writing on complex topics like quantum computing, crisis management, and the metaverse is deeply rooted in a mix of personal passion and a methodical breakdown of subjects. Arun revealed that his journey into authorship started not with books, but with blogging. "I had written blogs for three years," he said, describing his process of researching topics and weaving them into accessible narratives. This knack for simplification might also be partly nature, partly nurture—given his mother has published 11 books on literature and sociology!

Arun’s journey into writing his second and third books was almost serendipitous. "I was introduced to the right publisher at the right time, and I got greedy at the right time," he shared with a chuckle. When it comes to the craft of writing, Arun emphasized the importance of storytelling and making content understandable to the audience. He recounted moments during the writing of The Metaverse Economy when co-author Theo would point out sections that were too complicated or disjointed, prompting a rework for clarity. (You can read the Machinelab interview with Theo here.)

His foray into Bullieverse, where he served as Chief Growth Officer and Chief Strategy Officer, was a leap into the unfamiliar territory of gaming from his financial services background. However, the underlying economics of the platform, particularly the token model, fell squarely within his expertise. "It was still a lot of economics to do," he explained, detailing the modeling of supply and demand and his use of risk management experience.

The appeal for Arun lay in the potential of NFTs to bridge the gap between Web2 and Web3. "I think NFTs are probably a concept that will bridge Web 2 with Web 3 in the long run," he said, highlighting their applications in ticketing, music, and beyond.

These applications reminded me of a recent move by artist Damien Hirst in the NFT space. Hirst allowed customers to buy either the real artwork or the NFT. If the NFT was sold, he would burn the original artwork, live, for all to see. It was a controversial move, raising questions about the nature of artwork, of ownership, and of value.

Arun’s perspective emphasized the empowerment of creators through NFTs. “Creators rule the space,” he said in response, highlighting how NFTs offer a sustainable income stream for artists, a career path traditionally marred by financial instability. He also pointed out the potential for perpetual royalties through NFTs, allowing creators to benefit from their work's appreciation over time—an aspect that is surprisingly overlooked.

Arun envisions a world where access to exclusive content, like a premium Financial Times article, could be gatekept by NFT ownership, creating new revenue models for various industries.

Arun's thoughts on innovative revenue models smoothly segued into his venture with AU Capital Partners. He recounted his evolution from spearheading technology teams in investment banking to the exhilarating world of venture capital. This transition wasn't without its hurdles, as Arun faced initial setbacks including unreturned communications from top VCs and the steep learning curve of mastering due diligence and investment intricacies.

The birth of AU Capital Partners came from a desire to be more involved in deal-making and venture capital. Initially starting as a simple syndicate, it evolved into a more formal structure once it received regulatory approval. Arun candidly recounted the challenges of raising capital in the UK, especially as a newcomer to the VC world, and the learning curve involved in setting up and managing a fund.

Arun’s story with AU Capital Partners is a testament to his adaptability and willingness to venture into new territories, underscoring a theme of continuous evolution and learning. His journey from technology teams in banking to establishing a venture capital fund illustrates not just his professional growth but also his entrepreneurial spirit and resilience in the face of new challenges.

In our conversation, Arun also shared valuable advice for budding startups, especially regarding finding investors and growing capital. His insights were a blend of pragmatic strategy and a deep understanding of the startup ecosystem

Arun emphasized the importance of making oneself known in the ecosystem before pitching to investors. "It's extremely underrated, that particular aspect of it," he stated, highlighting that cold emails are a definitive no-go. Instead, he suggested leveraging social media platforms to create content, engage in meaningful discussions, and gradually build a network.

He pointed out the critical need for startups to align their teams with their business vision, especially in the B2C space. This alignment is crucial for the startup's success, as mismatches between vision and team capabilities can lead to significant challenges. "You can't have a business vision and build a team that can't deliver to the business vision," he advised.

Arun also underscored the importance of mental and physical well-being for founders. "It's a marathon, so take care of your mental and physical health," he advised, highlighting that neglect in these areas could have long-term repercussions.

Arun's insights serve as a reminder that the path to innovation is not linear but a complex mosaic of experiences, gyan, and a constant dialogue with evolving market dynamics. His approach to life and business urges aspiring entrepreneurs and veterans to think beyond traditional confines and embrace the multifaceted nature of the tech world.

Image courtesy of: Arunkumar Krishnakumar