How LODAS Markets Built Trust: Converting Traditional Finance Players into Tech Platform Users
Getting traditional financial institutions to adopt new technology is notoriously difficult. Yet LODAS Markets has managed to attract billions in institutional capital to their alternative investment platform. In a recent episode of Category Visionaries, CEO Brian King revealed their playbook for winning over skeptical enterprise customers.
Leading with Domain Expertise
Before building any technology, LODAS Markets established credibility through deep industry knowledge. Brian’s background building major exchanges proved crucial: “I was one of the original members of the startup team for Bats Markets Today. It was acquired by CBOE, and so now it has a lot of success in the markets. As an exchange, I also had the opportunity to move over to London and was the first person on the ground to start building Bats Europe. Today, that is the largest exchange in Europe.”
Understanding Institutional Requirements
Rather than pushing technology first, LODAS Markets started by deeply understanding institutional buyers’ needs. “The institutional buyers that we have, they have a very specific appetite, meaning that in many cases, they have reserved or earmarked several million dollars for a specific product or asset class,” Brian explains. This insight shaped their entire platform approach.
Building Enterprise-Grade Infrastructure
Instead of creating a simple marketplace, LODAS Markets built an Alternative Trading System (ATS) – essentially “a stock exchange for real estate,” as Brian describes it. This infrastructure choice signaled to institutions that they were building at enterprise scale from day one.
Technology as Trust Enabler
Rather than forcing institutions to completely change their workflows, LODAS Markets used technology to enhance existing processes. “We’ve made the process incredibly simple. Literally, somebody can set up an account in less than five minutes. But it’s all done through technology,” Brian shares. This focus on efficiency while maintaining institutional standards helped bridge the trust gap.
Leveraging Strategic Partnerships
LODAS Markets recognized that financial advisors could be powerful allies in building institutional trust. Rather than trying to displace these relationships, they built tools to enhance them. “We’ve even created technology that allows that aids a financial advisor to be able to help onboard their clients,” Brian notes.
Demonstrating Market Traction
Success breeds success in institutional markets. “What’s been great for us is that we’ve been able to really attract a lot of buyside interest,” Brian reveals. With “somewhere between one and two billion dollars” represented on their marketplace, this traction has helped create a flywheel effect of institutional adoption.
Future Vision: Breaking Down Silos
LODAS Markets’ vision extends beyond just creating a trading platform. As Brian explains, “Right now, everything works kind of in a silo and so to be able to connect to other institutions through technology and we’re just on the cusp of doing that now.” This broader vision of market transformation helps position them as a strategic partner rather than just another vendor.
For founders targeting enterprise customers in traditional industries, LODAS Markets’ experience offers valuable lessons:
- Lead with domain expertise to establish initial credibility
- Build infrastructure that matches enterprise expectations
- Use technology to enhance rather than replace existing relationships
- Focus on specific institutional requirements rather than general market needs
- Leverage early adopters to create momentum
Their journey shows that winning enterprise trust isn’t just about having better technology – it’s about understanding and aligning with institutional priorities while demonstrating a clear path to market transformation.