March 14, 2023
As a relatively new member of adult society, and an absolute infant of the business world, I didn't think much about bank choice. I figured: you put money in, you take money out, they're all the same. I also figured a local branch of a global bank is just a fungible tentacle of the giant banking machine, so also... who cares. Both incorrect assumptions, but let's relive and rediscover the effect of these assumptions as I did.
I start my company. I am a 22 year old recent college graduate living in San Francisco and pursuing the startup dream. I file my incorporation paperwork and wait to receive the necessary information for one of the first steps in the life of any new business: opening a bank account.
My filing is processed and I receive my EIN while visiting my parents in a suburb of Los Angeles. I have time to kill during one of the days so I drive down to the nearest Chase bank branch and open a business banking account. We'll call the person who helped me at the local branch Alex (this will be important later). I fund that account with a $20,000 personal loan which was almost all of my savings. I get an account number, an online login, and boom, we're in business!
About 6 months later, I raise a ~$1M seed round. I supply my Chase business banking account information for the wire, and at close the funding is wired to the account. I am sitting in a cafe in downtown San Francisco and I receive a call from an unknown number -- it's Alex, the banker that helped me open my account. He is being very casual, sort of like "Hey, just wanted to check on things." "I noticed a big deposit and wanted to make sure you had everything you needed." etc. For my side, I am mostly confused: why is this person calling me? I mostly say things like "yes yes I'm fine" and end the call quickly. Some wheels have started turning in Southern California, and I just hadn't known it yet.
Someone out there is probably mentally screaming at me "you fool!" at this point. With hindsight, I agree, but I will remind you dear reader that I have only been legally allowed to purchase alcohol for just over a year at this point in my life in the story.
The two years since 2012 -- from a banking perspective -- are quiet. Alex doesn't call me again, and we have no changes in our banking setup. For two years, the company was in heads-down building mode. We had shown significant product traction and were now ready to ramp up hiring to continue building.
At the end of 2014, we raise a $10.2M series A. I once again provide the same Chase business banking account and when the round closes, the funds are wired. Surprise surprise, Alex calls me! I'm starting to realize banks get an alert when there are major changes in account balances. Regardless, I once again brush Alex off -- "everything is good thanks! bye!" -- and continue on with my life.
At this point, I am bewildered that this guy I met at the random local branch to sign some papers is the one calling me, but didn't think much more of it at the time.
Once again, the two years since 2014 are mostly quiet from a banking perspective. Alex called more regularly to "check in" but otherwise nothing has changed. We still bank with Chase. I still have never gone back into a branch. I do everything online.
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