I had the same experience at Citibank. We started at a small branch in downtown LA with our Series Seed round check for $3M. Even then we barely got any attention, and dealt with just a local branch manager. Later we closed $7.5M, still no attention; except this time due to consolidation we were kicked to a regional team that handled our account as a team. In fact we never had a dedicated banker, we were just handled like so many SMB by calling a banking center. Over the years we asked for things like corporate credit cards and the like, but it always seemed we were just a little too small (I guess with Fortune 50 clients, we were small to them). Anyway we eventually moved to a smaller independent bank for different reasons.
My startup banking story (2023)
41–50 of 170 posts
Re: My startup banking story (2023)
#42Chase Bank Story time -
We sold our company in 2020. Anticipating the wire I decided I needed to upgrade to a big boy bank from my small regional bank that I've been using since I was 16.
What finer institution is there than J.P. Morgan Chase? I opened an account with them. I called them telling them there was going to be a larger than average transfer. I put in $500 to "warm up" the account (stupid in retrospect).
Acquisition goes through. Champagne for everyone. I try to login to look at the funds and my account has been closed. I call Chase and ask them "wtf?"
They say there's been fraud in the account. We've closed it. We will mail the check to your address. So I'm thinking they're going to mail me my acquisition funds over check?? FML. 24 agonizing hours and 10 calls to them later (all leading nowhere), I eventually got the funds to be wired to my original regional bank lmao. No thanks to Chase, this was all because of PNC who was in charge of the acquisition.
This is probably my fault for using a new account like this (I think someone told me to use a large bank or something I don't remember), but I will forever hold a grudge against Chase.
P.S. I never got back my $500 that they stole from me
Re: My startup banking story (2023)
#43Semi-interesting, but it felt like it was leading up to something big or interesting knowledge all the way up to the end.
Seems like it could have been way shorter, the plot is essentially "Deposited more and more money into a local Chase branch, made some guy named Alex a rising star. They called once in awhile, not sure why. Moving lots of money around isn't super straightforward."
Re: My startup banking story (2023)
#44Earlier quoted context omitted.
TFA didn't really explain the mistake. What I think it was: 1: Chase's business account wasn't appropriate for a tech startup; nor was it appropriate for the amount of money Mitchell was handling. 2: When your bank calls you after a very, very large money transfer, you should take the call. That being said: In today's world where every other phone call is some telemarketer trying to scam you or otherwise sell you som…
Your answers are appreciated, but they beg further questions. Do you mind that I inquire further? >1: Chase's business account wasn't appropriate for a tech startup; nor was it appropriate for the amount of money Mitchell was handling. What properties make it inappropriate for a tech startup, specifically? What would be appropriate instead, and why? >2: When your bank calls you after a very, very large money transfer…
The bank account was appropriate for small businesses. IE, restaurant, laundromat, ect. This became clear when the article explained that there was education for tellers about what a tech startup is.
Mitchell didn't take the call. He ended the call as quickly as he politely could, short of hanging up on Alex.
Edit: I've had a few bank tellers advise me on how to adjust my bank account correctly in the past. I'm going to assume this is what Alex was trying to do.
I might also point out that, around this time, Wells Fargo tellers were very pushy and would make calls like this. (I got one) It later came out that they were under intense pressure to sell banking services that nobody wanted.
Re: My startup banking story (2023)
#45I’m curious why this company raised money, only to park it in a bank account? What was the raise for?
Re: My startup banking story (2023)
#46> Ultimately, there was no long term negative impact of the events that transpired (except maybe for Alex, but I truly don't know) and I can now look back on it with amusement.
So a software guy who didn't understand people or banking opens an account at Chase. And a guy from Chase who didn't understand people or software calls him-- repeatedly over years-- and fails to ever connect on any human level whatsoever. Now when first guy withdraws millions from Chase, he unwittingly causes the second guy to lose his job. This means the the second guy isn't around to help the first guy when he needs him the most-- to help him navigate banking fraud on that same account.
This just seems tragic. Second guy's success as a banker and first guy's ease of mind as a customer were inextricably linked. Yet neither of them knew how to form the simple social bond of two 4 year-olds playing in the same sandbox.
Seriously-- how did Chase not hand the account to someone who could connect with this guy? For a multi-million dollar account this just doesn't pass the smell test.
Re: My startup banking story (2023)
#47Earlier quoted context omitted.
Your answers are appreciated, but they beg further questions. Do you mind that I inquire further? >1: Chase's business account wasn't appropriate for a tech startup; nor was it appropriate for the amount of money Mitchell was handling. What properties make it inappropriate for a tech startup, specifically? What would be appropriate instead, and why? >2: When your bank calls you after a very, very large money transfer…
The bank account was appropriate for small businesses. IE, restaurant, laundromat, ect. This became clear when the article explained that there was education for tellers about what a tech startup is. Mitchell didn't take the call. He ended the call as quickly as he politely could, short of hanging up on Alex. Edit: I've had a few bank tellers advise me on how to adjust my bank account correctly in the past. I'm going…
Thanks for answering!
So there is some set of services that are useful specifically to a tech startup but not a restaurant, but then there are a category of services that "nobody" wants, neither restaurant nor startup. Do you have an examples of any of those categories?
I am not asking because I disbelieve you. I am asking because I find this all fascinating, but it seems my imagination is lacking! What would I want from a bank account as a tech startup, versus a non-tech startup, versus a restaurant, that the bank wouldn't already give me when I sign up for a normal business account?
You said you were "advised to adjust" your account. Again, I apologize if I come across as ignorant, but what kind of adjustments?
Re: My startup banking story (2023)
#48Earlier quoted context omitted.
The fraud story is interesting, but something I had hoped would be addressed by the end of the post, wasn't. You wrote: >Someone out there is probably mentally screaming at me "you fool!" at this point. With hindsight, I agree... I was hoping the piece would end with what you would do now (or what should you have done) when Alex called you. Did I fail to understand something in the piece, and simply staying on the ph…
I would imagine this phone call's primary goal is trying to sell you higher margin financial products/services.
The way you phrase that, it sounds like these services are more advantageous to the bank, but possibly not to the account holder? If so, that goes against the tone of the article, where Mitchell implies (I think?) that he would have benefited more from speaking to Alex than the other way around.
Re: My startup banking story (2023)
#49I’m curious why this company raised money, only to park it in a bank account? What was the raise for?
My take on that was that they did use a lot of the money but were also generating revenue that came in to replace it.
Re: My startup banking story (2023)
#50Quite happy with Mercury. I had really terrible experiences with Chase and will never give them my money again.