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One big bank ripped our idea off after having pitched the idea at the same time we did at Bank A (our investor). If we don't close something this month, we'll s
by _funding 10y ago
One big bank ripped our idea off after having pitched the idea at the same time we did at Bank A (our investor). If we don't close something this month, we'll sell to them (they're rather eager). Making it an acquihire, because they don't know how to take the product to the next level. This outcome would certainly feel like a big failure to me.
They are not extremely hard to beat, their product lacks a lot of strategic implementations, making the barrier to exit extremely low. Our product also tends to be better.
The reason it's capital intensive is because you'll need to pay for transactions up until about 2020, and also need to acquire users very rapidly before 2018. Only to find out between 2018-2020 how much you can monetize the product. (big risk, fairly unkown reward).
There are ways to get the transaction costs down, but they will always be there long before we become profitable.
- chatmasta 10y agoWhy aren't you passing transaction costs onto the customer? So all these customers you have are paying you zero dollars?? Is that really necessary?
- _funding 10y agoYep, consumers are never paying premiums for transaction costs in Europe. Debit cards are the norm here. We don't pay extra when using our regular bank app to transact nor ecommerce transactions. Consumers are not going to pay for transactions :-)
- chatmasta 10y agoAh I see. I missed the part that you were more Venmo than stripe. I guess this is the same strategy Venmo took (and they started charging fees as soon as possible, especially given all the people using it for credit card churning). Sounds like you have a solid business. Good luck getting more funding. I hope it works out for you.