Augie 💳

Setting the Scene

• Over 54 million Americans lack sufficient credit history, severely limiting access to essential services like housing and insurance.

• Traditional solutions pose barriers:

  • High Fees: Secured credit cards often require high deposits and fees.

  • Credit Checks: Many credit-building options still require credit checks, excluding those with poor or no credit history.

• This week’s company provides a fee-free, no-credit-check card that helps users build financial health with every payment.

In a Sentence

Augie is a free secured credit card that enables users to build credit history with every payment.

• Free: Customers won’t be burdened by fees, interest, or security deposits.

• Build Credit: Augie is the only card to offer transaction-by-transaction credit building.

The Basics

• Industry: Fintech, Credit Services

• Headquarters: NYC

• Year Founded: 2021

• Employee Count: 8

• Investors: HNWIs

• Amount Raised: $1.5M in pre-seed funding

• Business Model: Revenue from merchant interchange fees (1.8% per transaction) and data monetization

• Early Traction: Signed agreements with key partners, Including several employee benefits groups, such as EBG, targeting over 60 million consumers

IN PARTNERSHIP WITH

• Do you want to pitch your startup on a podcast listened to by millions? 3 spots left!

• .tech startups have collectively raised over $5 billion and are catching angel investor and star VC Jason Calacanis's attention - he is exclusively inviting 3 more startups using .tech domains to pitch directly to him on his podcast, This Week in Startups.

• So, if you are one of the many innovative founders building your startup's website on a .tech domain, you can apply. Not using a .tech domain yet? Apply anyway, and switch to a .tech domain if selected to pitch to JCal.

Due Diligence

WHAT WE LIKE

• Market Opportunity: The market for credit-building solutions is vast, with over 54 million Americans struggling to establish or improve their credit profiles.

• Patent Pending: Augie’s patent-pending, secured credit card operates like a debit card but builds credit on a transaction-by-transaction basis, which creates accessibility by removing barriers.

• Low-Cost Acquisition Strategy: Augie’s B2B2C go-to-market strategy leverages trusted partners to acquire users at a low cost, potentially leading to rapid and scalable growth.

POTENTIAL RISKS

• Retention: As users build credit, they may move to traditional credit cards, potentially reducing long-term retention.

• Reliance on Partners: Although B2B partners will potentially help lower CAC, these partnerships could limit direct brand influence in conveying the value prop.

• Regulatory: Augie operates in a highly regulated industry, and any changes in credit reporting, consumer protection laws, or financial regulations could impose additional compliance costs or limit Augie's ability to offer its services as originally intended.

Founder Profile

• Paul Harkins, Chairman: A multiple-exit entrepreneur previously founded Billaway, as well as experiences at Instream Media, and offerIQ.

• Amit Thakur, CEO: Previously at Morgan Stanley and Standard Chartered Bank with a 23 year banking career.

Comps

• Chime: Backed by Sequoia Capital, General Atlantic, Amino Capital, DTS Global, and others.

• Self: Backed by Altos Ventures, Meritech Capital, Conductive Ventures, and Silverton Partners.

• Petal: Backed by Trinity Capital, RiverPark Ventures, Victory Park Capital, Valar Ventures, and others.

Event Board

• Bulletpitch B2B SaaS Dinner NYC: On September 17th, we are hosting a dinner in NYC for B2B SaaS founders and funders. Apply HERE.

Cast Your Vote

Last Week Today

• The Results Are In: AeroFuse, a company bringing zero-emission propulsion to large aircrafts, was favored in last week’s poll.

• Subscriber Feedback: “AeroFuse is a question of when, not if. Their potential is enormous but depends on the market gaining comfort with adopting a novel type of propulsion.”