Digital Social Hour Podcast Summary Episode: Master LinkedIn Marketing Like Sapphire's Founders | Stephen & Gabino Roche | DSH #1306
Release Date: April 7, 2025
Host: Sean Kelly

1. Introduction to Sapphire and Its Founders

In episode #1306 of Digital Social Hour, host Sean Kelly engages in an in-depth conversation with the twin founders of Sapphire, Stephen and Gabino Roche. Sapphire is a cutting-edge technology firm revolutionizing how financial institutions launch and manage new funds, emphasizing speed, efficiency, and digital transformation.

2. Business Model and Key Offerings

Stephen Roche provides a succinct elevator pitch for Sapphire, highlighting the company's ability to help financial institutions launch new funds in as little as 24 hours, ready for trading and near real-time settlement post-trade execution.

"[00:39] Stephen: ...we help financial institutions launch new funds as fast as 24 hours to be ready to trade. And after trade execution, we can help settle those trades at near real time."

Sapphire boasts an impressive client roster, including industry giants like BlackRock, JP Morgan, and BNY Mellon, backed by 108 patents developed by Stephen and his identical twin brother. Notably, Sapphire has maintained zero customer churn over its eight-year history, underscoring the company's robust execution and client satisfaction.

"[01:33] Stephen: ...we have zero churn. Not one customer has yet."
"[02:10] Gabino: ...the complexity in actually launching these funds... is part of what we're bringing into bear with the digitization of this entire workflow."

3. Overcoming Early Challenges and Perseverance

The journey to Sapphire's success wasn't without hurdles. Gabino Roche shares insights from his previous entrepreneurial endeavors, including a mobile app business that ultimately failed. These experiences instilled in him the importance of resilience, professional maturity, and the willingness to pivot when necessary.

"[02:59] Gabino: ...you have to be professionally mature, not professionally immature to admit the losses. And it helps you grow."

Stephen Roche echoes this sentiment, recounting the initial five-year period where Sapphire struggled to gain traction. Despite facing skepticism from established conglomerates and nearly going bankrupt multiple times, the founders' unwavering commitment and strategic pivoting eventually led to Sapphire's stabilization and growth.

"[05:08] Stephen: ...the first five years... scariest time in my life."

4. Mastering LinkedIn Marketing

A significant portion of the discussion revolves around Sapphire's effective LinkedIn marketing strategy. Stephen Roche explains how Sapphire leveraged organic LinkedIn content to establish thought leadership and visibility, especially during the COVID-19 lockdowns when digital interaction became paramount.

"[11:23] Stephen: ...our LinkedIn marketing strategy... was just organic."
"[14:07] Host: That's what happened with Facebook."

Sapphire's approach deviates from traditional B2B marketing by focusing on informative and entertaining content rather than direct sales pitches. This strategy not only engaged their target audience but also positioned Sapphire as a trusted authority in the financial technology space.

"[16:54] Stephen: ...the antithesis of what normal marketing is. Marketing ends up ruining things over time."
"[17:19] Gabino: ...branding is important to get our message out there."

5. Strategic Adoption and Building Industry Infrastructure

Gabino Roche delves into Sapphire's adoption strategy, emphasizing the creation of a centralized repository in the cloud to streamline data reconciliation across multiple financial institutions. This infrastructure addresses the fragmented data systems prevalent in the finance industry, enabling seamless and efficient trade settlements.

"[11:25] Stephen: ...we're providing that infrastructure, those rails between the firms to do this one and done thing."
"[24:32] Stephen: ...we eliminate 75%, up to 75% of those issues in post trade by doing our stuff in pre trade."

This proactive approach not only enhances operational efficiency but also aligns with the selfish interests of their clients by accelerating the approval and settlement processes, thereby fostering stronger partnerships with major investment managers.

6. Integrating AI and Intelligent Automation

The conversation shifts to the role of Artificial Intelligence (AI) and intelligent automation in Sapphire's operations. Both Stephen and Gabino emphasize the necessity of precise data mapping to ensure AI reliability and effectiveness.

"[35:14] Stephen: ...the AI, the machine learning is forgetting the information is not being consistent always... we create placeholders for clients."
"[36:25] Gabino: ...it's about that golden source of information."

They caution against relying solely on generic AI models like ChatGPT, advocating instead for tailored, private instances that maintain data integrity and security. This approach ensures that Sapphire's AI-driven solutions can handle complex financial data with high accuracy, supporting real-time trade settlements and mitigating risks associated with manual data reconciliation.

"[45:21] Gabino: ...use the AI to conduct an activity like scan a DOC 80 page document... then forget it."
"[47:27] Stephen: ...we have exciting stuff around AI, the machine learning components of it."

7. Series A Funding and Fueling Growth

Sapphire successfully raised a Series A funding round of approximately $18.7 million, which Gabino acknowledges as both a milestone and a responsibility. This influx of capital has been pivotal in scaling operations, enhancing research and development, and fueling the company's aggressive growth strategies.

"[40:39] Stephen: ...our Series A, but, you know, there was a Bake off...".
"[40:44] Host: They don't talk about that part."
"[40:53] Host: They don't talk about that part."

Despite the challenges associated with raising funds, such as equity dilution and increased financial obligations, the founders view the investment as essential for accelerating Sapphire's market presence and technological advancements.

8. Future Focus and Upcoming Initiatives

Looking ahead, Stephen highlights Sapphire's partnership with BlackRock's Aladdin platform, expected to enhance their service offerings to a broader base of investment managers. Additionally, Sapphire is gearing up for significant announcements related to AI and machine learning, poised to further revolutionize how financial information is transmitted and processed.

"[47:23] Host: What's the main focus for you guys this year? Anything exciting coming up?"
"[50:32] Gabino: ...what I'm working with the team on, we hope to announce relatively soon."

Gabino also underscores the impending regulatory shift towards T+1 settlement in the European market by 2027. This change presents a substantial opportunity for Sapphire to provide intelligent automation solutions that meet the stringent real-time processing requirements, ensuring financial institutions remain compliant and efficient.

"[50:32] Gabino: ...the move to T +1 in the European market and they're going to... revolutionize how people transmit information."

9. Closing Remarks and Contact Information

The episode concludes with Stephen and Gabino sharing where listeners can learn more about Sapphire. Interested individuals are directed to visit www.sapphire.com or connect via their LinkedIn profiles for the latest updates and information.

"[52:13] Host: Where could people find you guys?"
"[52:15] Stephen: ...www.sapphire.com or LinkedIn...

Key Takeaways:

• Sapphire's Value Proposition: Accelerates fund launches and trade settlements for financial institutions using patented technology.
• Resilience and Execution: Founders emphasize perseverance through early challenges and the critical importance of flawless execution.
• Effective LinkedIn Marketing: Leveraging organic content to build thought leadership and engage with the B2B audience.
• Strategic Industry Adoption: Building centralized data infrastructure to streamline operations across fragmented financial systems.
• AI and Automation: Focused on intelligent automation with precise data mapping to enhance reliability and security.
• Growth and Funding: Successful Series A funding has fueled significant growth, with strategic partnerships on the horizon.
• Future Readiness: Preparing for regulatory changes like T+1 settlement with innovative solutions to maintain market efficiency.

For entrepreneurs and professionals in the financial technology sector, Sapphire's journey underscores the importance of strategic marketing, robust execution, and continuous innovation in navigating and leading within a complex industry landscape.

Connect with Sapphire:
Website: www.sapphire.com
LinkedIn: Stephen Roche | Gabino Roche