mikekarnj

I like Sproutbox. Seems like a more hands-on Y-Combinator. How has the success been so far?

At the very early stages of a business, I think the CEOs should focus 80% of their time on marketing and growing their business (getting new customers, building community, etc), and 20% of their time developing the actual product. The dev team should launch just enough of the website to see if it sticks, and picks up traction. If it does, it should receive more time and lovin’

What do you guys think of algorithms? Do they work well? Know of any good examples?

That's a great point Spencer. However, I think companies that want to scale faster will need to take investment. Why wait a year to get enough cash in the bank to hire more people when you can do it now? Opportunity costs are tremendous.

Totally agree. I would rather invest into companies that are starting to pick up traction. Just a personal preference. And invest into superstar entrepreneurs that are about to launch something versus investing into their idea.

Ha. That's a great point. Never thought of it like that either. I'll started returning 2-3% in gifts as well.

Thanks for all the comments. Like all entrepreneurs, I believe that the team will overcome any obstacles that get thrown in it's way. Also, I obviously do not come from the finance/banking world which is why I would fill those weak areas with a strong management team.

While doing further research, there are banks out there already applying similar models. My post was a "blue sky" piece. It was never meant to cover every logistical detail. It was an article on how I would start a bank if I had to start one from scratch. I agree that it's an insanely difficult to tackle but what isn't?

A similar bank Kasasa just won Best of Show at the 2009 Finovate Conference. Last year, it was Mint.com. Check it out -- https://www.kasasa.com/explore