Introducing InstaSwitch. 5.4 million US businesses try to switch banks every year. 60% never finish. $72 billion in revenue disappears into that gap. The next ten years of business banking will be won on activation. The fintechs and banks that close the gap between opening an account and operating one will own the deposit base. Today we're officially launching InstaSwitch, the switching infrastructure that powers business banks to close this gap. We're live with $4.7M in seed funding led by @ChicagoVentures, with participation from @8bitcapital, @btv_vc, and @PanacheVC , alongside angel investors from Unit, Square, PayPal, and Plaid. Short video on why we built this.

A bank or platform bringing in 1,000 new business accounts a month at $1,000 annual revenue per user generates $12M in annual revenue from that cohort. Lose 40% to activation friction and $4.8M walks out the door every year. Most teams aren't measuring it, so it doesn't show up on a board deck. It still shows up in the deposit base. Checkout our full breakdown here instaswitch.co/resources/the…

Banks lose customers in the gap between sign-up and first deposit. @instaswitch is building account activation infrastructure to close it. Early customers: Arc, Relay Financial, Lettuce. We led the $4.7M seed. bit.ly/4wnbKjr

📣 We're happy to announce that we've led the $4.7M Seed round into InstaSwitch, the first account activation infrastructure built specifically for business banking that makes bank switching seamless for the 5.4 million U.S. small businesses that attempt to switch banks every year. Read more about why we invested: medium.com/chicago-ventures/…

Switching banks is still harder than switching entire software stacks. @InstaSwitch raised a $4.7M Seed round backed by @ChicagoVentures, @btv_vc, and @PanacheVC. Daniel West is building banking activation infrastructure that helps businesses seamlessly migrate payroll, deposits, and payments between financial institutions without operational disruption. The next fintech wave will reduce friction inside the financial system itself.

Startup Wins Funding From Chicago Ventures for A Platform That Makes It Easier For Small Businesses T... via @forbes forbes.com/sites/elainepofel… @ChicagoVentures

We’re excited to lead InstaSwitch’s $4.7M seed round. Daniel West saw how broken bank switching was while at Unit—and built the infrastructure to fix it. Now, millions of small businesses can actually complete the switch.

The line in the @Forbes piece we won't forget: @stuartlarkins said @ChicagoVentures usually underwrites a vision, but with InstaSwitch they were underwriting a problem. The problem had data. The data had urgency. That's the way to think about this category, the activation gap isn't a vision pitch. Every bank and fintech is already losing money to it. InstaSwitch is the solution. Thank you @ElainePofeldt for the coverage. Read the full story here: forbes.com/sites/elainepofel…

Very excited to announce our investment in @InstaSwitch! 5.4 million U.S. small businesses try to switch banks every year. Most never finish. The account opens, but then the owner realizes they have to update payroll in Gusto, invoicing in QuickBooks, payments in Stripe, and 30 other tools, each with its own login and MFA. So they give up. The account sits unfunded, and banks lose out on billions of dollars in revenue. That's where InstaSwitch comes in. InstaSwitch is the missing link between account creation and account adoption. It embeds in a bank or fintech's onboarding flow and automatically moves a business's income, payroll, spend, vendors, and clients to the new account in a single session. We at @btv_vc are thrilled to continue backing the team great to partner up with our friends at @ChicagoVentures alongside @8bitcapital and @PanacheVC on the round. If you're a bank or fintech tired of watching opened accounts go cold, you should chat with them! And if you want to learn more about why we invested, check out more below better-tomorrow-ventures.gho…

Forbes coverage here forbes.com/sites/elainepofel…