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Jakob Pethick explains how his involvement with Innovate Finance’s Unicorn Council has strengthened YouLend’s dedication to offering embedded financing solutions. He discusses the measures YouLend is implementing to grow and serve small businesses, along with insightful lessons for entrepreneurs focused on creating scalable solutions.
Joining Innovate Finance’s Unicorn Council is a significant milestone. How has being part of this prestigious group affected your strategic direction?
As an embedded finance provider, YouLend thrives on successful partnerships. Thus, being part of a collective of like-minded companies committed to collaboration and industry advancement is indeed a notable achievement for us. However, our membership has not shifted our strategic trajectory or motivation. Our goal remains constant: empowering technology and payment firms to offer sustainable financing solutions to small businesses, which enables them to operate more effectively, generate employment, and promote economic independence. Ultimately, our success hinges on one factor—whether small businesses genuinely benefit from our offerings.
Being part of the Unicorn Council highlights YouLend’s considerable growth potential. What crucial steps do you foresee for YouLend to realize this potential, and what insights can other entrepreneurs gain from your experience?
The strong market demand for YouLend’s embedded financing solution is truly exciting. We are still in the initial phases of responding to that demand. The World Bank has indicated a $6 trillion global financing gap, and 50% of SMEs in the UK report that securing financing has become more challenging in recent years. Our partners—such as Amazon, Shopify, eBay, Etsy, and SumUp—all express a strong desire to better support their business users’ goals.
To address this rising demand, we have been, and will continue to be, investing in our technology infrastructure to ensure it stands out across Europe, the UK, and the US. Given that many of our partners are global or operate across various markets, we have developed a platform that guarantees true product parity across regions. If I could offer advice to other entrepreneurs, it would be to remain attuned to your customers’ needs. If you become too preoccupied with crafting an ideal vision of your company and less focused on what your end-users actually require, you will lose your direction.
What do you think distinguishes those who achieve unicorn status from those who don’t, and how are you preparing YouLend for that next level?
Unicorns typically possess grand ambitions. They aim to tackle some of today’s most significant challenges in a scalable manner. The capacity to execute effectively on such ambitions often sets unicorns apart from other companies. At YouLend, we have consistently aimed to become a global all-in-one solution for embedded finance. From the beginning, we recognized the need to attract top-tier talent and address challenges in a scalable manner through our technological platform.
Everyone experiences an “aha” moment. Was there a particular instance at YouLend when you thought, “We’ve truly arrived,” and how did it reshape your perspective?
Two “aha” moments stand out for me. The first was during the COVID pandemic. As various countries went into lockdown, we witnessed a dramatic increase in demand from partners wanting to assist their business users with financing to help them survive during closures or manage the surge in demand in their sectors. YouLend was able to provide support to businesses far more rapidly than governments could implement guaranteed financing programs, which was impactful. It was heartening to see the YouLend team making a real difference to tens of thousands of small businesses precisely when they needed it. The second moment was less dramatic but equally significant: launching our first transatlantic partnership across multiple markets in the USA, UK, and Europe simultaneously, thereby validating our solution’s scalability and affirming the success of our ‘one-stop’ global offering.
Managing a business can be overwhelming. How do you decompress and stay motivated during tough times?
For me, the cornerstone is fostering a strong team and cultivating a positive culture that keeps me energized, even when challenges arise. When there’s mutual trust among team members and a shared purpose, navigating difficult periods becomes significantly easier. Outside of work, I prioritize nurturing a healthy mind and body—this includes regular exercise—biking, weightlifting, tennis—and ensuring adequate sleep. These routines help me reset, unwind, and come back focused.
Given YouLend’s expanding footprint in the UK fintech landscape, how do you view your impact on the UK’s fintech ecosystem?
YouLend has always valued partnerships with fintech, tech, and traditional financial service firms. The UK was our initial key market, allowing us to collaborate with numerous industry players to help small businesses secure the funding they need to thrive. We recognize the importance of building partnerships across the industry and strive to share our insights on what makes partnerships successful or unsuccessful.
To date, YouLend has facilitated funding for small businesses over 250,000 times globally, setting a benchmark for inclusive finance. Our data indicates that YouLend’s decision-making models are twice as effective as traditional providers in granting access to capital for female-led and financially disadvantaged businesses. Broadly speaking, YouLend maintains an industry-leading 90% approval rate for applicants across all our primary markets.
