Summary:
Slash pivoted from serving sneaker resellers to offering vertical banking services after Kanye West's controversies collapsed their original market
Raised $41M Series B at a $370M valuation, processing $300M monthly through its cards
Adopted a vertical software approach, tailoring services to industries like performance marketing and crypto
Over 1% of all Facebook ads bought with Slash-issued cards
Plans to expand into e-commerce, online travel, and property management
Slash, a neo-bank startup founded by two Gen Z college dropouts, Victor Cardenas and Kevin Bai, has successfully pivoted from its original niche targeting sneaker resellers to offering bespoke banking services for various industries, securing a $41 million Series B round at a $370 million valuation led by Goodwater Capital.
The Pivot That Saved Slash
Originally, Slash provided banking services to sneaker resellers, a market that collapsed overnight following Kanye West's anti-Semitic rants, which led Adidas to sever ties with the rapper, devastating the Yeezy resale market. This event caused Slash's revenue to drop by 80%, forcing the founders to rethink their strategy.
Vertical Banking: A New Approach
Instead of competing directly with fintech giants like Ramp and Mercury, Slash adopted a vertical software approach, tailoring its services to specific industries such as performance marketing agencies, crypto firms, and HVAC operators. This strategy has proven successful, with Slash now processing $300 million monthly through its cards.
Key Features and Future Plans
- Performance Marketing: Slash allows firms to create distinct accounts for each client, providing visibility into metrics like prepayment balances. Over 1% of all Facebook ads are now purchased using Slash-issued cards.
- Crypto Services: Slash enables businesses to swap between fiat and crypto, managing various crypto holdings—a critical service as traditional banks shy away from crypto under the Biden administration.
- Expansion: With 35 employees, Slash plans to enter new sectors like e-commerce, online travel, and property management.
The Fintech Landscape
Slash's success comes amid a booming fintech sector, with peers like Plaid and Ramp securing significant funding and companies like Chime and Circle preparing for IPOs. Slash's partnership with Column, a chartered bank designed for tech firms, has been instrumental in its growth.
Victor Cardenas envisions Slash becoming one of the largest commercial credit card issuers in the U.S. by solving niche financial workflows across industries.
Comments