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August 2022 Update

💡 Key highlights

🚀 We’re on track to launch the Modern mobile app (iOS and Android) into public beta by the first week of October
📝 Ran a six-month pilot program using a web app version of the MVP
Converted 1,500 waitlist to >450 pilot users (25% CR to linked account)
Overall <$10 CAC to linked bank account
💪 Strong early signals of product-market-fit
1.44 viral coefficient
Captured >1/3 of monthly bill payments (vs. 10-20% average)
🧠 Scaled, optimized our intelligence engine over four-month pilot, enabling us to leap-frog the cold start problem at launch
👫 Hired a talented team to build and scale Modern
(Lead Engineer) - built the mobile app, a global super app and “Uber of Mahgreb region”
(Business Operations) - management consultant in Accenture’s Analytics practice
💬 Achieved stat sig on multiple A/B tests to nail down our top-line messaging

➡️ What’s next

Launch our Beta / MVP targeted for first week of October
Close bridge financing before EOY
Release next evolution of core features through Q4
Full public launch of v1.0 platform, namely our subscription-based hybrid card product, in conjunction with Seed financing targeted for Q1-2023

🙏 Asks

We have opened a small round to bring on strategic angel investors. This investment will allow us to build on the momentum of our public beta launch, accelerate our roadmap, and fill key roles to scale the platform ahead of our public launch and Seed round in Q1 of next year. If you or anyone in your network might be interested, please let us know or feel free to forward our .
We are also looking for strategic advisors to help us refine our credit / lending strategy, with specific expertise in building and scaling operations, risk and compliance programs.

📈 Why we’re excited

There are a number of significant macro and micro-level trends that signal the need for a solution like Modern, now more than ever.
Increasingly challenging economic conditions steer millions toward more debt, driving higher delinquency rates, and continued negative impacts on financial health.
Based on findings from our extensive A/B testing and user research, consumers are looking for more proactive, holistic solutions that help them get ahead of bill payments and avoid unnecessary debt or fees.
Traditional neobank playbook is flawed - Varo is unable to scale lending business despite a bank charter; $83 in average account balance
Chime and Dave continue to capture small share of wallet
PFMs have neither the focus on bills nor the infrastructure to take meaningful action
Credit bureaus increase scrutiny on credit builder cards that generate weak signals of creditworthiness
Fannie/Freddie pressures credit bureaus add weight to rent and utility bill payments in credit files
Legal action taken on P2P payment apps for inadequate consumer fraud protection

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