Slash, a US banking startup that connects personal and business banking for entrepreneurs, has emerged from stealth mode following a $19 million funding round led by NEA.
The seed and Series A rounds also saw participation from Menlo Ventures, Connect Ventures, Y Combinator, Soma Capital, Global Founders Capital, as well as angel investors William Hockey, founder of Plaid, and Justin Mateen, co-founder and former CMO of Tinder.
Co-founders Victor Cardenas and Kevin Bai, who both dropped out of Stanford University and The University of Waterloo, initially developed a product allowing users to create shareable virtual cards for splitting recurring expenses. This feature quickly gained traction among teenage dropshippers on Discord, as the debit-based virtual cards were accessible to users aged 13 and older and did not rely on credit history.
Though originally intended for splitting expenses like Netflix and Spotify, users innovatively leveraged the cards for various business ventures. A Microsoft study reveals that nearly two-thirds (62%) of Gen Z aspire to start their own businesses, with 48% engaging in multiple side hustles.
Currently, Slash serves around 20,000 users, ranging from teenagers launching their first side hustles to large e-commerce companies spending millions monthly. Victor Cardenas highlights, “There’s a rapidly growing group of very young entrepreneurs that has been completely overlooked by traditional financial institutions and other fintech companies. For individuals with side hustles, having a separate business bank account is crucial, yet transferring funds between different banks can be tedious. Our product enables users to easily manage both personal and business accounts in one place, making it ideal for self-employed individuals.”
In addition to banking services, Cardenas states that Slash aims to provide a comprehensive legal and financial solution for young entrepreneurs, incorporating services such as business incorporation, invoicing, automated bookkeeping, and tax management.