Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 12 February 2024
Length: 19 pages
Data source: Published sources
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Abstract
Clair was founded with a simple mission: to expedite America's workers access to their hard-earned wages. In the headwinds of the COVID-19 pandemic, the start-up had successfully raised a seed round of USD4.5 million, and within two years the earned wage access (EWA) FinTech had partnered with 10 human capital management system providers to access over 8,000 employees and over 300,000 employees . However, as the economic outlook plummeted and available external capital began to dry up, Clair's founders considered whether other business models offered more attractive prospects for the start-up's long-term success. Should Clair stay the course or choose to pivot, and what tradeoffs would each pathway entail? With investors requiring a clear long-term vision and a viable path to profitability, this decision would determine Clair's ability to thrive and fulfill its founding mission.
Location:
Industries:
Size:
< 50 million; Start-up
Other setting(s):
2022
About
Abstract
Clair was founded with a simple mission: to expedite America's workers access to their hard-earned wages. In the headwinds of the COVID-19 pandemic, the start-up had successfully raised a seed round of USD4.5 million, and within two years the earned wage access (EWA) FinTech had partnered with 10 human capital management system providers to access over 8,000 employees and over 300,000 employees . However, as the economic outlook plummeted and available external capital began to dry up, Clair's founders considered whether other business models offered more attractive prospects for the start-up's long-term success. Should Clair stay the course or choose to pivot, and what tradeoffs would each pathway entail? With investors requiring a clear long-term vision and a viable path to profitability, this decision would determine Clair's ability to thrive and fulfill its founding mission.
Settings
Location:
Industries:
Size:
< 50 million; Start-up
Other setting(s):
2022