by Erika Jonsson Ariane Barker is the CEO of Scale Investors, a female-focused member based Angel Investor network that invests in exceptional female founders. Ariane has 20 years’ experience in blue-chip financial services companies including NAB, HSBC, Goldman Sachs and Merrill Lynch in Melbourne, Hong Kong, Tokyo, New York and London. She speaks to Six Park head of communication Erika Jonsson about her experiences in finance and entrepreneurship.
What was the first thing you remember saving for? How long did it take?
The first thing I remember saving for was my red Yamaha moped, which I bought when I was 16 and living in the US. My parents are from Europe and it seemed like everyone in Europe had a moped so it was something I had wanted for a long time. I babysat from the age of 11, then got my first real job when I was 14 at the local bakery and went shopping to pick it out when I was 15. It was US$500, my goal was to get this thing as soon as I was able to drive it.
I went to university in Boston and then moved to London from New York after graduating to work in investment banking at Merrill Lynch – I’d ride my moped slowly past Buckingham Palace every day! It was a symbol of my financial independence.
You’ve worked in some of the world’s great financial cities. What are the greatest similarities and differences between these places and their populations?
As cities, they’re all very different when it comes to finance, but working in financial institutions, you always encounter certain similarities. Working through the tech boom in the mid-’90s through to now, I had the opportunity to work with people who were really switched on, adventurous and smart. As I moved around different cities, I worked with a lot of different instruments and across different asset classes – working with derivative products, I was fascinated by how these structures were put together, but it would almost verge on “Is that right? Is that ethical?” You would be really impressed but have an element of caution. Having looked at and been challenged in unpicking a lot of complexity, I have come out the other side valuing simplicity, fairness and respect for the underlying beneficial owner and customer.
What motivated you to work in financial services?
I studied economics and mathematics as from a very young age I had a fascination with investments and growing wealth. My parents had both come from wealthy families in Europe being challenged by the economic environment in the ’60s and ’70s so had chosen to leave their immediate families to live in the US and build a new life. I was deeply interested in wealth and the values and traditions that had come from my parents combined with the new ways of generating wealth in the US meritocracy. Wall St was the natural place for that.
I really thrived in New York – I loved the pace, the energy, and the people I met when I joined the banking world. I had an amazing cohort of analysts when I joined Merrill Lynch, and we went through the hothouse of being inducted into Wall St, and I got my ass kicked for the first time – which is kind of the making of you.
Finance is a bit of a rat race, particularly for women with children. There’s a slippery slope around putting your family or career first – that was never a choice for me, my family was always going to come first so that was a very simple decision. It’s only with the benefit of hindsight that I realise how much compromise I’ve had to make in my career to align with my values.
What differences have you observed in the way men and women invest and why they invest?
I’ve been a lifelong investor and through Scale Investors I’ve met a range of amazing women who equally look at their portfolios and investments with a really well-tuned risk lens. We ask a lot of questions before being comfortable. Men make decisions much more quickly where, as a generalisation I’ve noticed women truly need to feel comfortable and confident with their investment decisions or they have someone else who does it for them – they’ll defer to their husband or adviser, for example.
The why for women is to have that family sustainability, myself included – my goal has always been to support my family and my children’s education and to have confidence that I have enough savings for when I retire (since statistics show we will live longer!). In my experience, men are more motivated by the act of making money.
What excites you about your work leading Scale Investors?
The thing I really love about Scale is activating capital where it’s not otherwise being activated. I’ve worked on some very complex transactions and very few women have been involved in that because finance is very male-dominated. Mathematically, women’s financial disadvantage is a real challenge in society and we need to help more women become economically empowered. Scale offers the ability for women to learn how to access capital but also delivers the opportunity for investors to learn how to invest in early-stage businesses.
Most founders are aged 40-45, but they can be anywhere from their 20s to their 50s. It’s really inspiring to meet these people, many of whom have been working in their industry of specialisation for a long time.
I’ve learned a lot about why women pitch differently to men, the unconscious biases that both men and women have; you learn so much about people and deeply respect the journeys they are on, both as founders and investors. Women are even harder on other women, which was really confronting, but I’ve seen it in action and have realised it’s true.
How has the COVID-19 pandemic been affecting the start-up world in Australia?
I definitely think this is a catalyst opportunity to work more agilely and nimbly. Australia is very networked when it comes to financial services, and the ability to break down a lot of those physical barriers is actually a great opportunity for the start-up world here and overseas, to play to our strengths. I think this situation will be a necessary firm nudge for accepting flexible working and updating the workplace, which will help more people find and secure employment. It’s an opportunity for start-ups to cater to evolving customer needs because customers aren’t expecting that curated in-person experience as such. The businesses that deliver great online experiences will do really well in this environment. We believe in fairness in Australia, so the Australian consumer is actually a great test case for launching global products.
What we’re seeing happening at a community level is really inspirational – people are coming together and connecting in ways that we’ve never seen before, which I love. I love getting rid of the pretence and just connecting with people at a very simple level. Regardless of background or where we’re all from, we’re all human and we just need to connect. We’re doing that in ways we’ve never done before. I hope that people will remember what’s happened and the positive side of confinement while also recognising that it’s really hard for some people.
What was the first investment you made outside your super?
When I was young and in the US, I started investing in shares directly, and I remember buying shares in Dell Computer that went really well. I’ve always had an eye on growth, and my investing banking background led me to focus on that, then from around when I had kids I stopped stock picking. I really respect the people who do this full-time and I’m happy to pay them, through super, to do their job really well.
What’s the most important lesson you’ve learned about money?
It’s not about money itself. When I was young I was really motivated by money, whereas now I’m motivated by the economic opportunities and the value behind money. I’m interested in value creation, working out how value is created and how I can support others in becoming more financially independent.