Issue link: http://endeavor.uberflip.com/i/1202586
19 LESSON 2 NETWORKS ARE THE MOST INFLUENTIAL ORGANIZATIONS IN MILAN FINTECH. The fintech sector in Milan is characterized by a tight knit web of peer- to-peer connections. Entrepreneurs know each other well, they are generous with their connections, and they frequently co-operate with each other to advocate for legislative change in Italy and the EU. In fact, over 72 percent of entrepreneurs reported that they could get the number of an influential entrepreneur they wanted to meet that same day. Trust was also very high among respondents: approximately 80 percent of respondents reported that they trusted other fintech entrepreneurs either somewhat or completely. These levels are very high not only compared to other groups, like investors or politicians, but also in comparison to some of the other entrepreneurship communities where Endeavor has conducted research. For instance, in Mexico City, less than 35 percent of surveyed entrepreneurs mentioned that they trusted their fellow entrepreneurs by the same measure. High level of trust towards peer entrepreneurs could explain why the most influential actors in the fintech community are networks like Fintech District, Italia Fintech, and Endeavor. The membership of these networks includes some of the biggest names in the sector like Credimi, Moneyfarm, and Satispay, which allows less established founders to connect with more experienced ones. Knowing someone or running into them during social events has not been demonstrated to have the same beneficial impact for a company's growth as mentorship or angel investment, but networks can be leveraged to build these more productive types of connections between entrepreneurs. These networks are important vehicles to transmit information in the sector, and they could be further leveraged to disseminate resources and advice for scaling entrepreneurs. All three networks are led by people with significant previous experience founding or leading for profit companies at scale, and research suggests that organizations led by people experienced in entrepreneurship are substantially better at helping other entrepreneurs growing their companies. 21 A potential explanation for the prominence of networks over other types of connections in the Milan fintech community is the high levels of trust in other entrepreneurs, and the relatively low levels of trust in institutional investors, as demonstrated by the chart below. FOUNDERS DEGREE OF TRUST IN SELECTED STAKEHOLDER CATEGORIES Responses to the question: Do you trust each of these groups completely, somewhat, not very much or not at all? Percent of respondents who trusted the following groups somewhat or completely. 75% 50% 25% 0% 100% Politicians Investors Neighbors Corporate Executives Entrepreneurship Community Fintech Entrepreneurs People Source: Endeavor Insight. Sample size = 64 responses by Milan fintech founders. The question was adapted from World Values Survey.