Given the uncertainty around the economy and a lot of talk about recession, people are looking for alternative places to invest their moneyand many are turning to wine.
U.K.-based Cult Wine Investment, founded in 2007, is one platform that aims to make wine investing accessible and approachable, with its millennial-friendly aesthetics; informational tools such as a global index to provide market data; and a soon-to-launch DIY investing app called CultX.
For chief financial officer Gemma Doran, her role requires her to work across multiple industries and numerous global markets, while keeping up with the frenetic pace of a startup.
The life of a CFO in a wine-slash-tech-slash-investment company is challenging, she says. Its exciting. You have to be dynamic and you have to adapt.
Here, she shares her thoughts on how to be a good leader, how the role of the CFO is evolving, and why you should invest in wine.
High finance background, startup mentality
Doran originally went to school for politics, but a focus on international lending brought her to finance, especially with SMEs (small and medium enterprises). Her work with travel and leisure companies led her to Cult Wine Investment five years ago.
They needed someone to come in who had international experience and could take them to their next step of growth, be it with strategy, with process, with setting up companies in new geographical markets, says Doran.
SME is very dynamic, says Doran. I like the roll-your-sleeves-up mentality. If someones off sick, its all hands on deck.
Whether sitting in a C-Suite meeting working on the launch of the CultX app to redefining processes to make them more efficient, Literally one day is never the same, she says.
As a CFO of a startup, she finds many tasks fall to her. I think this is very common trait of a CFO or finance director: We pick up things that nobody else does. So I look after the legal side of things as well, be it investment contracts, new leases for offices, insurance, and things like that. Until 18 months ago, Doran served as a human resources department of one.
Courtesy of David Parry Photography/Cult Wine Investment
How knowledge fosters clear communication
This idea of being well-versed in every aspect of her work is core to Dorans leadership style.
I never expect a junior member of my team to do something that I wouldnt know how to do because I think thats quite disrespectful, she says. I dont want them to think that their tasks are too menial for the CFO not to understand how to do them.
Since she joined, Cult Wine Investment has opened up new offices in Singapore, Shanghai, New York, and Toronto, on top of the existing locations in the U.K. and Hong Kong. Satellite locations in Japan, as well as Dubai, also debuted within the past few months. This expansion caused her to think about how to communicate across time zones, cultures, and technology. Im very fortunate I can survive on little sleep, she laughs.
But organization and task prioritization keep communication flowing. Mornings are dedicated to queries from, and meetings with, the Asian markets, as well as addressing any urgent matters from North America so when they come online they will have answers. Midday sees to Europe and the U.K., and she ends her day back with the U.S. and Canada.
Although she relies on external partners, such as legal experts, to help navigate the nuances in each market, she says its imperative to arm herself with sufficient knowledge of every matter. It facilitates better conversationsand faster decisions.
Her biggest bugbear is when people dont ask questions. I have a philosophy that in general, no question is a stupid question, she says. What normally ends up making you look stupid is not asking a question, producing something that is entirely wrong, and having to do it again.
One title, three industries
What makes Dorans role unique is she sits at the intersection of three industries: tech, finance, and wine. But as technology continues to play a central role in how we work and communicate, she thinks this overlap will continue to be common.
I think technology underpins not just wine, but most industries these days. Without it, I dont really see how you can advance, she says.
And with this evolution, so will the role of the CFO. Its very important for me to understand [technology] because how could I go out and raise finance? How could I develop a budget? How could I develop the processes that my team needs?
She points to a recent example, where she worked with the tech team to establish the relevant consumption tax codes that go into a finance package. This collaboration ultimately helps automate elements of her work.
Why invest in wine
The Venn diagram of industries changes communication with the consumer as well. For wine, like many industries, the pandemic shifted the industry online. More direct-to-consumer sales, online tastings, and other activations turned a rather traditional industry on its head. Because of this migration into the digital space, Doran sees more women and younger people getting into wine.
And reaching new demographics of wine lovers is the ultimate goal of Cult Wine Investment. Wine is a great diversification tool [for a portfolio], says Doran, as it doesnt follow the traditional fluctuations of traditional markets and generally is low in volatility. At the moment, its quite a good hedge against inflation. If you are prepared to hold onto investment wine for a longer period, youll be able to capitalize on increasing prices. The imbalance of supply and demand of fine wines drives the consistency on returns, she notes.
The core business, Cult Wine Investment, takes a hands-on, more traditional approach to investing: customers work with an advisor to manage their portfolio, while an online portal allows a client to see their investments in real time.
But with a minimum entry investment of 25,000 GBP (approximately $30,160 USD), it can be high barrier to entry. For those looking to dip their toe into the world of wine investment, the company is gearing up to launch their CultX app, where users can buy, sell, and self-manage their collections. Theres no minimum to start, and Doran thinks this will open doors to a new demographic of collectors.
You have to embrace the advancements in technology and shifts in demographics, she says. Challenges are definitely changing and we have toparticularly in the size of which Cult Wines isadapt.
