Built out a strong active pipeline of partners and in negotiations to launch several proof-of-concepts in the next month (e.g. Mint Mobile, T-Mobile, FuboTV, Independent Pet Group).
➡️ What’s next
We’re fully in sales mode aiming to launch proof-of-concepts with the first group of Partners.
Continuous product enhancements and deeper partner integration based on ongoing feedback.
We are raising up to $200k through an angel syndicate in partnership with Anderson Angels (see more in “Asks” section).
You or anyone in your network interested in investing as little as $1,000 into Modern? Anderson Angels will be launching an SPV to raise up to $200k from angel investors (no requirement to be UCLA Anderson alum). Please let me know if interested and I will make sure to share the link to the AngelList investment memo.
Let us know if you know anyone who is responsible for retention, marketing, customer experience, or product at a company within one of these sectors. Feel free to forward along our
We’re looking for strategic advisors with expertise in insurtech, insurance underwriting, or legal.
📈 Latest trends
Consumers face mounting financial distress
What happened? Consumers face increased cost of living, mounting debt, and depleted savings. 40% of consumers are now just one setback away from missing a major bill and falling into financial hardship.
So what? Paying bills on-time has never been harder, which is a growing financial risk for consumers and billers alike. Both need novel, more effective solutions to solve the underlying cashflow problem.
Struggles continue for credit-driven fintechs
What happened? Credit-driven fintechs continue to get crushed in the private and public markets (Dave dropped as low as $54M in market cap, Affirm and other BNPLs seeing massive increases in cost of funds and losses).
So what? We don’t need more fintech innovation in credit-driven products that overlook the underlying problem. We need to deliver new product constructs with unique distribution that empowers more sustainable models.
Regulators start cracking down on fintechs
What happened? Nevada is the first state to pass legislation that requires licensing for earned wage access providers.
So what? EWA providers must meet certain operating standards that put a stranglehold on how these companies have historically generated revenue (e.g tips) and underwritten risk (e.g pull credit reports). This puts the business models of these fintechs at significant risk, further validating the inadequacies of credit as a solution to this problem.
Company blurb - feel free to pass along
Modern is on a mission to protect the financial livelihood of hardworking Americans by building the infrastructure for a better and more sustainable financial safety net. Every year, $87B in essential bills go unpaid simply because consumers don’t have cash at the right place and time (“temporary NSF”). For billers, this translates into higher churn of loyal customers and over 5% in lost annual revenue. As 40% of consumers are now just one setback away from missing a major bill, this problem is only getting worse for consumers, billers, and the broader financial system.
Bill Protect, a first-of-its-kind retention platform for billers that combines an innovative loyalty program with embedded insurance to maximize net revenue and customer LTV. Powered by contextual underwriting and proprietary bill pay data, Bill Protect eliminates churn caused by temporary NSF so billers retain more profitable customers and customers maintain the services they need. Everyone wins with Bill Protect.
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