Sign In

Aeron Sullivan

Founder & CEO at Pangea

Aeron Sullivan is the Founder and CEO of Pangea, a company he established in January 2021 with the goal of developing algorithmic models for managing foreign exchange (FX) risk autonomously.1 Pangea Prime, the company's platform, enables businesses to hedge FX risk, launch international accounts, and transfer multiple currencies globally.2

Prior to founding Pangea, Sullivan's career included:

Military Service

Aeron served as a Captain in the U.S. Marine Corps from 2007 to 2015, holding various positions including Platoon Commander and Company XO.3

Entrepreneurial Ventures

  • Tradiv: From 2014 to 2016, Sullivan founded and led Tradiv, a technology company in the legal marijuana industry. His work there led to his inclusion in Inc Magazine's 30 entrepreneurs under 30 list.24

  • BibleProject: From 2016 to 2021, Sullivan worked at BibleProject, joining as the 10th employee and serving in multiple C-level roles including CMO, CTO, and CPO. He played a key role in the company's growth and product development, including the creation of the BibleProject App.14

Education

Sullivan holds a Bachelor of Arts in Political Science and Middle-East Studies from Drury University (2004-2008) and an MBA from Norwich University (2013-2015).1

Personal Life

Aeron Sullivan is married with two daughters and resides in San Diego, California.24

Sullivan's approach to business is influenced by his faith, as he aims to create a people-centric culture at Pangea that promotes work-life balance and personal growth.4 His goal with Pangea is to positively impact the global economy, particularly in emerging and frontier markets.45

Highlights

Aug 23 · linkedin

🦔 𝗗𝗼𝗲𝘀 𝘆𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗮𝘃𝗼𝗶𝗱 𝗙𝗫 𝗵𝗲𝗱𝗴𝗶𝗻𝗴 𝘁𝗼 "𝗿𝗲𝗱𝘂𝗰𝗲 𝗿𝗶𝘀𝗸"?

If so, you might be inadvertently increasing your exposure. Welcome to our second installment of Common FX Pitfalls.

#𝟮 - 𝗧𝗵𝗲 𝗛𝗲𝗱𝗴𝗶𝗻𝗴 𝗛𝗼𝗮𝘅

Attached is an email from a potential client who recently told us: "𝘞𝘦 𝘩𝘢𝘷𝘦 𝘢 𝘱𝘰𝘭𝘪𝘤𝘺 𝘰𝘧 𝘯𝘰𝘵 𝘵𝘢𝘬𝘪𝘯𝘨 𝘍𝘟 𝘳𝘪𝘴𝘬, 𝘴𝘰 𝘸𝘦 𝘢𝘷𝘰𝘪𝘥 𝘩𝘦𝘥𝘨𝘪𝘯𝘨."

Ironically, I know this organization carries significant FX risk. This treasury member fell into a common trap that ensnares many financial leaders: believing FX risk comes from hedging.

Read on to better understand why this misconception can be costly:

𝗧𝗵𝗲 𝗥𝗶𝘀𝗸 𝗙𝗼𝗿𝗺𝘂𝗹𝗮: 📈 Volatility X Time 🕒 = Risk In other words, the value of a cash flow in one currency will change relative to other currencies over time due to market fluctuations. Hedging largely solves for this.

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗙𝗫 𝗵𝗲𝗱𝗴𝗶𝗻𝗴 𝗶𝗻 𝟯𝟬 𝘀𝗲𝗰𝗼𝗻𝗱𝘀 𝗼𝗿 𝗹𝗲𝘀𝘀? Hedging is a financial strategy that reduces the risk formula's impact. It minimizes volatility's effect over time by locking in exchange rates, effectively neutralizing the "Volatility X Time" equation. This protects your business from unfavorable market movements, ensuring financial stability.

𝗕𝗿𝗲𝗮𝗸𝗶𝗻𝗴 𝗗𝗼𝘄𝗻 𝘁𝗵𝗲 𝗛𝗲𝗱𝗴𝗶𝗻𝗴 𝗠𝘆𝘁𝗵 Consider a $1,000,000 payment due to you in 6 months: • 𝗪𝗶𝘁𝗵 𝗵𝗲𝗱𝗴𝗶𝗻𝗴: Lock in today's rate, receive exactly $1,000,000 in 6 months. • 𝗪𝗶𝘁𝗵𝗼𝘂𝘁 𝗵𝗲𝗱𝗴𝗶𝗻𝗴: A 5% adverse move could cost you $50,000 in lost revenue.

🤔 𝗕𝘂𝘁 𝘄𝗮𝗶𝘁! You might say, "Couldn't I make $50,000 if the market moves in my favor?" Sure, but ask yourself this: Are you paid to speculate on currency? I suspect if you proposed betting on Indonesian Rupiah Forwards to your CFO, you'd likely be sent back to your desk...

If speculating is truly desired, h͟i͟r͟e͟ ͟a͟ ͟h͟e͟d͟g͟e͟ ͟f͟u͟n͟d͟.͟

💡 𝗧𝗵𝗲 𝗕𝗼𝘁𝘁𝗼𝗺 𝗟𝗶𝗻𝗲: • 𝗡𝗼𝘁 𝗛𝗲𝗱𝗴𝗶𝗻𝗴: Speculative by nature and high risk. • 𝗛𝗲𝗱𝗴𝗶𝗻𝗴: Insures stability and reduces risk.

Hedging isn't about risk-taking—it's managing risk on known cash flows and foreign-denominated assets. In the volatile FX world, a proactive hedging strategy shields you against market unpredictability in the future.

Ready for a smarter risk management strategy? Let's talk. DM me or anyone at Pangea about hedging with the easy button: Pangea's Hedging as a Service.

#FXRiskManagement #HedgingStrategy #GlobalBusiness #FinancialProtection

Aug 12 · linkedin

𝗗𝗼𝗲𝘀 𝘆𝗼𝘂𝗿 𝗯𝗮𝗻𝗸 𝗿𝗲𝗮𝗹𝗹𝘆 𝗴𝗶𝘃𝗲 𝘆𝗼𝘂 𝗳𝗿𝗲𝗲 𝗴𝗹𝗼𝗯𝗮𝗹 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀? 🌍💸

If you think so, you're not alone—but this is a common misconception. Welcome to our first installment of Common FX Pitfalls.

#𝟭 - 𝗧𝗵𝗲 𝗙𝗿𝗲𝗲 𝗙𝗲𝗲 𝗙𝗮𝗹𝗹𝗮𝗰𝘆

Attached is a response from a potential client we reached out to regarding a discussion on reducing their FX costs. Here's the gist:

"𝘖𝘶𝘳 𝘣𝘢𝘯𝘬 𝘨𝘪𝘷𝘦𝘴 𝘶𝘴 𝘧𝘳𝘦𝘦 𝘪𝘯𝘵𝘦𝘳𝘯𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘸𝘪𝘳𝘦𝘴, 𝘴𝘰 𝘸𝘦’𝘳𝘦 𝘤𝘰𝘷𝘦𝘳𝘦𝘥."

This belief is surprisingly common, but it's a textbook example of what we call the "Free Fee Fallacy." Banks aren't in the habit of offering services for free, so why would they waive a $20 wire fee?

The answer lies in three magic words: Foreign Exchange Markup 💱 = 💰

Banks often waive wire fees to attract businesses, but their real profit comes from the FX spread—the difference between the exchange rate they offer you and the rate they pay to acquire the currency.

• 𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻 𝗥𝗮𝘁𝗲: This is the rate at which the bank purchases the currency from another bank. For example, they might buy euros at a rate that’s only 0.1% above the interbank rate.

• 𝗬𝗼𝘂𝗿 𝗥𝗮𝘁𝗲: This is the rate they offer you, which could be 2.1% above the interbank rate. The difference between these two rates is the markup.

When you initiate a transaction, you might think you’re getting a good deal because there’s no wire fee. But in reality, the bank is making money off the FX conversion.

𝗕𝗿𝗲𝗮𝗸𝗶𝗻𝗴 𝗗𝗼𝘄𝗻 𝘁𝗵𝗲 𝗖𝗼𝘀𝘁𝘀

Let’s take a closer look at how the waived wire fee compares to the FX markup:

• $1,000 Transaction: The waived $20 wire fee is 2.0% of the transaction amount. However, if the bank charges a 2.1% FX markup, you're actually paying $21. Net Cost: $1 • $10,000 Transaction: The waived fee represents just 0.2% of the transaction, while the FX markup costs you $210. Net Cost: $190 • $100,000 Transaction: Here, the waived fee is a mere 0.02%, but the FX markup could cost you $2,100. Net Cost: $2,080

As you can see, while the waived wire fee might seem like a bonus, it’s just a tiny fraction of the real cost. The larger your transaction, the more significant the FX markup becomes—and the less relevant the waived fee is.

The next time you hear about “free wires,” remember that the true cost lies in the FX conversion. Banks make their profits not by waiving minor fees, but by charging you significantly more for currency conversions.

Nothing in banking is truly free. 💡

If you'd like help understanding what you're truly paying for your FX, or if you want to initiate a relationship with an FX provider who is genuinely transparent about the economics of your global transactions, shoot me, or anyone at Pangea, a DM.

#FXMythbusting #GlobalPayments #BankingTruths #CurrencyMatters

Related Questions

What inspired Aeron Sullivan to transition from the US Marine Corps to entrepreneurship?
How did Aeron Sullivan's experience at BibleProject influence his approach at Pangea?
What challenges did Aeron Sullivan face while founding Tradiv in the marijuana industry?
How does PangeaPrime aim to revolutionize FX risk management?
What role does faith play in Aeron Sullivan's leadership style at Pangea?
Aeron Sullivan
Aeron Sullivan, photo 1
Aeron Sullivan, photo 2
Add to my network

Experience

Founder & CEO at Pangea (January 2021 - Present)
C-Level Leader in Product / Tech / Marketing / Growth at BibleProject (December 2016 - November 2021), Founder at Tradiv (December 2014 - November 2016), Captain in US Marine Corps (June 2007 - May 2015)

Education

MBA from Norwich University, Suma Cum Laude (2013 - 2015); BA from Drury University, Political Science and Middle-East Studies, Magna Cum Laude (2004 - 2008); Exchange at Regent's University London in

Location

San Diego, California, United States