Comment by mushufasa
10 hours ago
I spent time looking into this a couple years ago as a startup founder with this problem. We are in the finance space so I saw how bad the treasury options were with our bank, given their fee cut versus plain T-bonds at the time. I looked into which brokerages allowed us to setup self-directed accounts (many banks don't offer that for businesses at all). I found the "correct" approach. But then there would be more paperwork and back and forth to set up that new account, then manage transferring money around when we needed it, logging into a different system. On a ski trip a friend in finance told me "you're being dumb, if your bank offers you a treasury plan with a one click button, even if it's not perfect, click that button now!" So I did.
Then, the benefit of saving 1-2% extra versus spending my time trying to actually running the business and doing things with our money in the real world, has meant I have never looked back. 1-2% on millions of dollars is significant but it's not nearly as impactful as finding Product-Market-Fit in your actual business.
All this to say: I'd be in your target market but I'm simply not interested in a "marginally better" treasury system versus just going with my bank's options that make it easy for me.
That's fair. But to your point, the problem we see is that banks' treasury products take advantage of founders who (rightfully) don't want to think about their treasury yields.
That's why we designed Palus to be as simple as possible to use. If you check out our demo video, you'll see it's super straightforward. Setup takes <5 min and then you don't have to think about it anymore. We're also building out automatic sweep functionality, so then you REALLY won't have to think about it.
Given the significant increase in returns on a large treasury, we think it's worth the small amount of effort.
> Given the significant increase in returns on a large treasury, we think it's worth the small amount of effort.
Isn't that the point he was making though? It's a large treasury in aggregate, which is why it makes sense for a new entrant to come in, but it's only a 1-2% problem for founders, which is why they don't bother with it much (why fix what's not broken, etc.).
By the time founders raise significant sums of money (which is usually Series B onwards), they might be better suited to deal with a fractional CFO service which provides the full spectrum of services instead.
Similar to something like Jiko?