

Hey, stuck startups, reducing growth could make you less fundable
Jul 7, 2023
In this engaging discussion, Immad Akhund, CEO and co-founder of Mercury—a fintech that emerged as a crucial resource during the Silicon Valley Bank collapse—shares vital insights for startups. He reveals the ‘Startup Death Spiral’ and how companies can avoid it by prioritizing sustainable growth over aggressive strategies. Immad also reflects on his angel investing experiences, emphasizing the importance of adapting to changing market dynamics. The conversation underscores the unique banking challenges faced by startups and the critical role of financial stability in today's economic climate.
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Mercury During SVB Collapse
- Mercury experienced immense growth amidst the SVB collapse, initially viewing it as an opportunity.
- The subsequent FDIC intervention shifted the focus to customer support and reassurance.
Customer Retention
- Despite initial concerns of short-term deposits, Mercury saw a 95% customer retention rate after 90 days.
- This suggests that customers value Mercury's services beyond immediate crisis management.
Startup Banking Needs
- Startups have unique banking needs that traditional banks often fail to meet.
- Mercury aims to fill this gap by providing services tailored to startups' international exposure, investor inflows, and burn rate.