Small businesses account for nearly half of all economic activity in the US, but are often hamstrung by the banking ecosystem today. The pandemic put a spotlight on just how underserved small business owners are by banks, whose stringent processes and lack of digital tools still make it too difficult for entrepreneurs of all walks of life to get going. But if there is one thing we learned during the pandemic about small business owners, it’s that they persevere. Even as the economy shrank because of Covid-19, the small-business startup rate hasn’t just stayed steady, it’s growing.
During his time leading data science at Square Capital, Thomson Nguyen saw firsthand how fintech can give small businesses solutions that they might otherwise be financially excluded from. He joined Kleiner Perkins as an entrepreneur in residence to more deeply understand the needs of small businesses. We learned that the current underwriting and credit system is broken. Business owners are paying for (and drowning in) the majority of bank fees from traditional checking accounts and credit lines. We also learned that the line between individuals and businesses is blurring now more than ever and, if we truly want to create economic empowerment and close the wealth gap, we need a better, more modern version of a direct to business bank. The solution was Hatch.
Hatch provides accessible, transparent and fair solutions that small businesses need to start out and grow. Today, the Hatch team is addressing the primary culprit of bank fees for small business owners — checking accounts. A Hatch Business Checking account can be set-up in as little as 10 minutes, and comes with no NSF fees and cashback rewards. Hatch is already supporting thousands of business owners who have the grit and passion to succeed, and build a better economy for everyone.
While loans and checking products alone aren’t enough to make a small business successful, it’s just the beginning for Hatch. We’re excited to have been privy to Hatch’s formation in our offices and to support them from Seed to Series A. We are thrilled to join Thomson and team on their mission to help small businesses grow and empower business owners to take their destiny into their own hands.