Iqram Magdon-Ismail made his name as the co-founder of Venmo, a “digital wallet” with a social network foundation. The app has millions of downloads and has become a go-to resources for transferring funds.
Venmo’s acquisition by Braintree and then PayPal has made Magdon-Ismail one of the most successful app developers in the world. He leverages the financial windfall of his exit to invest in startups. He has contributed to the development of software for the cannabis industry, an audio-based social network startup, a Manhattan Sri Lankan restaurant, and even his own music.
Iqram Magdon-Ismail Lost his Wallet, Found Venmo
Before setting up permanent base in New York, Magdon-Ismail lived in Zimbabwe, Zambia, and Uganda. The idea for Venmo first came from Magdon-Ismail and his freshman year roommate at the University of Pennsylvania. Feeling too lazy to go down the stairs to tip the band they were listening, the two wished they had a way to send money through their phone instead.
This initial pain point later transformed into a serious endeavor. Magdon-Ismail went to visit his former roommate Andrew Kortina in New York, and forgot his wallet. At the 2016 #StartupColumbia entrepreneurship festival, Magdon-Ismail said, “Sometimes building something that directly improves your life is a great way to invent something that improves the lives of others.”
This principle fueled Venmo – it originated as a matter of convenience to a couple of college kids, but soon revolutionized digital payment across the globe.
Experimenting with Mobile Formats
While most Americans are familiar with Venmo, the version available today has undergone many changes from its original iteration. The founders originally focused on food trucks, charity, and merchants. In 2012, the app pivoted to its social media angle: As long as users had a person’s phone number, they could exchange money.
“It’s important to experiment,” says Magdon-Ismail. “Once something sticks, go big. Be relentless about handling failure with persistence and positivity.” Magdon-Ismail and his co-founder also kept themselves open to the idea of acquisition, which happened twice and saved the company.
“It would have taken hundreds of thousands of dollars from investors to even break even,” Magdon-Ismail recalls. He also laughs that as a startup, they hoped that Venmo would replace Paypal, “and then PayPal bought us!” By that point, Venmo was worth $800 million to PayPal.
Iqram Magdon-Ismail Pays It Forward
Since the massive PayPal deal, Magdon-Ismail has moved on to other ventures, funding and supporting start-ups and growing industries. One of them is Ense, an audio-based social media platform.
“If we were able to get to know everyone then there’s no thing [as separation],” Magdon-Ismail describes the purpose of this app. “We all start listening to each other.”
This project also ties into his personal love for drums, playing off of the importance that sound plays in his own life. For him, music is his “meditation,” says Magdon-Ismail. “I always want to feel like I’m dancing… If I’m still and stagnant then I’m scared.”
Magdon-Ismail also contributes to the budding cannabis industry. He has particularly focused his investment on Flowhub, a cannabis-based digital platform. It serves as a Point of Sale software for cannabis retailers. The start-up earned $23 million in its first round of venture capital fundraising. Magdon-Ismail contributed significantly, alongside a number of VC firms and former NBA commissioner David Stern.
