Disclosure certainty 4/5 debate potential 2/5

Bean: Divvy targets Main Street SMBs rather than just VC-backed companies

Alex Bean · Divvy Founder Sees Clear Path to $100m, 20k Customers, Most Revenue from CC fees, $1b+ in GMV · May 17, 2021 · at 4:10

Alex Bean, co-founder of spend management platform Divvy, outlines the company's core customer segments and ICP strategy in an interview with Nathan Latka.

0:00 / 0:15exact quote · 15.9s
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“Luckies of the world, but just SMBs, you know, we kind of have two audiences. I say like one to 50 and 50 to 500, slightly different use cases for the most part, but SMBs in general, that that's, we're going after the mom and pops of America, Main Street America, not just the VC backed companies.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

More from Alex Bean

Disclosure
Bean: Divvy offers free software by monetizing card interchange fees
“We make money just like the banks would. And then we give you the software that Expensify and others are giving you. So we really combine it into one platform.”
Alex Bean May 17, 2021 ▶ 4:50 Divvy Founder Sees Clear Path to $100m, 20k Customers, Most Revenue from CC fees, $1b+ in GMV
Insight
Bean: Co-founders can be true partners without a 50/50 equity split
“And the advice I would give a non CEO co-founder is you have to understand where you sit for me. I always knew Blake was the quarterback and I was the running back to use a football reference, meaning we were partners and he, I don't think he could have done i…”
Alex Bean May 17, 2021 ▶ 7:44 Divvy Founder Sees Clear Path to $100m, 20k Customers, Most Revenue from CC fees, $1b+ in GMV
Assertion Supported
Bean: The vast majority of Divvy's revenue comes from interchange fees
“Almost, almost all I would say majority of that is on interchange.”
Alex Bean May 17, 2021 ▶ 10:30 Divvy Founder Sees Clear Path to $100m, 20k Customers, Most Revenue from CC fees, $1b+ in GMV
Insight
Bean: Underwriting skill minimizes loss rates rather than increasing revenue
“Underwriting just minimizes your losses. It doesn't actually add you. If you're really good at underwriting, it doesn't add revenue. It minimizes your loss rate.”
Alex Bean May 17, 2021 ▶ 10:51 Divvy Founder Sees Clear Path to $100m, 20k Customers, Most Revenue from CC fees, $1b+ in GMV
Assertion Not checkable as stated
Bean: Divvy Maintains Annual Churn Rate Under 5 Percent
“Yeah, it's very fair. So which is crazy on a free product that people can walk away, right?”
Alex Bean May 17, 2021 ▶ 16:32 Divvy Founder Sees Clear Path to $100m, 20k Customers, Most Revenue from CC fees, $1b+ in GMV
Opinion
Bean: Brex Innovated on Credit While Divvy Innovated on Software
“Brex drove innovation on the credit side and they deserve a lot of credit for it. We drove innovation on the software side and we deserve a lot of credit for it.”
Alex Bean May 17, 2021 ▶ 18:19 Divvy Founder Sees Clear Path to $100m, 20k Customers, Most Revenue from CC fees, $1b+ in GMV
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