MainStreet Yield: An Origin Story
Introducing our first Treasury Management product, MainStreet Yield
Last year, MainStreet successfully raised a $60 million Series A. It fell into place faster than we’d anticipated and thus, we were faced with the best kind of problem a startup can have: what to do with all this money?
Of course, much of our funding was already set to be used for strategic and operational plans, but the rest was on track to sit idle in our checking account, “earning” a couple of dozen basis points of interest per year. After working tirelessly for this round of funding, it seemed unthinkable that our cash couldn’t be put to better use. So we set off looking for an alternate solution and ended up with a new product: MainStreet Yield.
The main idea behind MainStreet Yield is simple and effective. Over the past few years, several new alternative investment opportunities and financing business models have blossomed, both in the traditional finance and alternative asset worlds (and sometimes across both). Big businesses jumped on this bandwagon right away, devoting entire teams to capitalize on these opportunities. But the playing field wasn’t level for smaller, growing businesses. They didn’t have armies of investment professionals dedicated to investing their idle cash as the big guys do… until now.
MainStreet Yield offers small businesses the same chance to generate a meaningful, risk-adjusted yield on their stagnant cash. After all, a year-end statement showing $75,000 of interest earnings probably is a rounding error for the big guys, but for a small shop, it could mean a new key hire, an upgrade of equipment, or another couple months of much-needed runway.
Thus, over the past nine months, we put the best product, legal, financial, and capital market-minded teams together to design a sturdy investment solution for our fellow startups. Our goal is to offer our customers a reliable alternative to passive savings, extending opportunities and runways as they scale from Seed to Series A and beyond.
As always, our goal is to save businesses time, money, and peace of mind. We’re excited for this new MainStreet chapter, and we hope that it leads to new opportunities and growth for you as well.
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