π Perch - Use Netflix to boost your credit | Drop #23
Utilize repeat payments to improve your credit score | Drop #22
π This is a free DailyDropout.FYI issue. Enjoy!
π₯ 1. Clubhouse
Daily Dropout will be hosting a Clubhouse on the state of student startups next Sunday. Click here from your phone to RSVP!
π 2. This weekβs startup
Do you have a Netflix subscription or pay rent? Perch helps you use these repeat payments to build your credit score.
But first, this weekβs startup is brought to you by our sponsor, Circles for Zoom, the most beautiful way to experience Zoom.
Circles is a new way to experience Zoom.Β Circles turns each participant into a movable circle on your screen to put you back in control of your desktop, among other features - itβs a Zoom power tool. Circles is 100% free to use, and you'll love the flexibility and control you get over your meetings. Get Circles today!
βΎ The Elevator Pitch:
I remember when I was in college applying for credit. Having no credit history, banks only offered me their bottom-tier card with a measly $250 limit. Funny thing is, Iβd been making repeat payments - through rent, my meal plan, and more, for months.
Perch Credit allows you to use recurring expenses to boost your credit score. First, users can sign onto the app to log their subscriptions. Next, Perch teams up with credit reporters to log your on-time payments. Finally, your credit boosts can show in as little as 30 days. And, itβs all free.
πΒ The Drop Down
Site:Β https://getperch.app/
School:Β USC
Founded:Β 2019
Stage:Β Seed
Tech trend:Β FinTech
Traction:Β Funded by YC, Sequoia, Jay-Z; hundreds of users
Team - Talented USC dropouts
Ayush Jain - Co-Founder
Michael Broughton - Co-Founder
π Our analysis
π₯ Desperate problem
College students are shut out from easily building credit, and banks (by a 2008 law) are forbidden from soliciting credit cards from college students on campus. Underbanked student is a hair-on-fire problem for students, but what student doesnβt have an Amazon Prime subscription or Netflix? Perch provides a key for them to get started.π± New markets
In addition to Perch's solid market of 20MN college students in the US, Perch has great potential to target lateral markets as well. Nearly 2 BILLION adults don't have access to a bank account and if Perch can prove their formula right to banks, they can strike a new way to build credit for billions.π’ Does it work?
A credit score is a measure of reliability to pay. Do repeat payments on subscriptions, rent, and more really translate to more creditworthiness? This model is still new, and only time will tell.
π‘ Founders Corner
π€ Want more?
Keep updated through theirΒ Instagram
Hi, I am a subscriber and would like an intro to the founders of Perch. How would it work? Thanks, Antonio