Immad Akhund, CEO and Founder of Mercury
Challenge existing incumbents with better solutions
On Nov 30, we hosted Immad Akhund, CEO and Founder of Mercury. Mercury is a Fintech company that offers banking services for more than 100,000 customers, mostly startups, providing a full suite of products, from checking, savings, and credit cards to expense management, treasury management, and venture debt.
Career and Entrepreneurial Journey: Akhund's career began with a computer science degree at Cambridge and a stint at Bloomberg. His entrepreneurial journey started in 2006 with a Yelp-like company in London, followed by a series of startups, including a Y Combinator company in 2007 and a mobile advertising company that he sold for $45 million in 2016. This journey led to the founding of Mercury in 2017.
Insights on Startup Dynamics and Fintech Trends: Akhund shared his perspective on the two types of startups: native innovators in new spaces and those challenging existing incumbents with better solutions. He identified a significant shift in the Fintech sector around 2020-21, noting the difficulty in finding new ideas due to market saturation and investor burnout. He sees AI as a promising trend, particularly in automating processes that are labor-intensive in Fintech.
Handling the SVB Bank Run and Building Trust with Banks: During the SVB bank run, Mercury focused on reassuring customers through extended FDIC insurance and product enhancements like Mercury Vault. Akhund highlighted the challenges of interfacing with legacy banking systems and emphasized the importance of being proactive and transparent in customer service. He also described the importance of having good relationships with partner banks, especially smaller institutions focused on being good Fintech partners.
Growth Strategy and Onboarding Process: Akhund discussed Mercury's growth strategy, which centered on identifying a specific market need and focusing on a targeted customer segment - startups and e-commerce. He highlighted the importance of word-of-mouth and partnerships with entities like Stripe Atlas and Y Combinator. He also explained the onboarding process, emphasizing the need for a smooth and efficient system, especially in a heavily regulated industry like banking.
Practical Advice for Entrepreneurs: Akhund offered insights into the importance of perseverance, a strategic approach to securing investors, and the value of learning from each experience. He stressed the importance of hiring the right team, maintaining a high hiring bar, and not overstaffing in the early stages. He also shared his thoughts on the importance of founder-customer fit over founder-industry fit, suggesting that deep understanding and resonance with customers are crucial for success.
These highlights encapsulate Akhund's experiences and insights as a successful entrepreneur in the Fintech industry, offering valuable lessons for aspiring entrepreneurs and startup founders.