Farewell, and Thank You, to Vouch

Farewell, and Thank You, to Vouch

It has been a little over a month since Vouch went under. There are no words to describe what that felt like - "how could it all be just... over?" Just like that.

We announced to the Vouch team after failing to raise Series B that our last effort to sell the company to a strategic buyer had fallen through. Their "go/no go" decision timing was right on the heels of the Lending Club bombshells and the news from Prosper and Avant that "all was not sunshine and unicorns" in the online lending world. We had no time to try again or to find another partner. We were out of cash.

I was asked to say a few words to the team, just hours after finding out myself that the 2 month detailed diligence process ended with a "no go" decision. My mind went blank other than swirling memories and the looks on the faces of the people in shock across the table from me - my friends and partners who had worked so hard to build and then to save Vouch side by side with me for nearly two and a half years. I owed them eloquence, or at least a wise, thoughtful comment, full of wit and humor... Something to ease the sting. But I couldn't find the words.

Vouch was born in late 2013. I felt grateful to be among the cofounders. I started Vouch to make a difference. To help people who were underserved. To try to find a way to sift out those borrowers who don't get a fair shake in the credit world but who deserve one, by asking those who know them best - their friends and family - to Vouch for them.

I like to think we got really, really close. We just were not big enough to prove it definitively.

I remember the guy who had the $1,350 loan where he was required to pay $350 every two weeks in service to the loan, or $700 per month. He had been doing that for 5 months when we were able to make him a $1,500 loan with a sub-$100 monthly payment to pay it off. He had another $600+ per month in free cash for his family. It put him right side up for the first time in a long time. He said we made a real difference for him.

There are so many stories like this.

Aside from the borrowers we helped, I feel like we built our own family of friends within Vouch. We hired from within our own personal networks. These were not people we randomly met at Vouch. For each new hire, someone on the team put their own reputation and judgement on the line for, saying "I vouch for her. She'd be awesome." 

Each one of you holds a place in my heart, and I thank each of you for believing in our vision and for joining me in this journey. Our violist. Our karaoke queen. Our radio announcer. Our bride to be. Our game night coordinator and bringer of scones. Our DJ. Our every-fan. Our mushroom scientist. Our breakfast club. Our storyteller. Our canary. Our better two-thirds. Our greyhound dad. Our cute sneezer (who's wary of boxes). Our gamer. Our crafty mom. Our conscience...

I want to thank Bill O for constantly looking for another way out, another path forward, always creative and logical and clever. You never gave up.

I want to thank Richard L, whose tenacity, diplomacy and leadership through the most difficult days were a source of strength for me. You let me be who I am, to rail against the frustration, never let me down.

I want to thank Prescott N, who held me up when I thought I could not do it anymore so many times. Your perspective shook me out of ruts and helped me to see back ups, and alternatives, and plan Bs. You kept the pulse of the team, for better or for worse. You expected me to be better than I thought I could be. 

Thank you - to my fellow senior leadership team, and to each and every one of you on the team - for your passion, your dedication, your belief in Vouch, and your patience over those last crazy, boring, intense, tedious, exciting and devastating last few weeks and months. What an emotional roller coaster it was. 

Slack is dark. The office is empty. The sounds of nerf guns, laughter and tears, Barry the Breville, and the Elton John channel have all faded away. 

What has not faded for me are the memories and the special friendships we forged on this journey together. I will never forget this experience, or any one of you. I would count myself lucky to work with any of you again.

Onward to our next adventure. May Vouch have been a springboard to an even better place for all of you. 

Jay Wedgeworth IV

Purchasing Operations Manager

7y

Y'all were able to change people's lives. And open eyes to the dismal array of choices that some have been restricted to consider for short term lending.

According to WSJ there was $12MM in funding and only $1MM in loans created. Where did the most of the money go (marketing? dev? salaries?) and what was the key reason for the business not taking off? Not enough consumer interest? High fall off because applicant's couldn't get vouched for? Marketing cost to acquire a borrower to high? Did not scale fast enough for investors? Flawed profit model? Seems like a great concept, curious to hear from insiders what exactly went wrong.

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Catherine M. "Cathy" Brennan

Partner in Hudson Cook LLP's Fintech Practice Group

7y

I liked your model. Best of luck.

Blair Carey, CFA

Small Business Owner @ InsideCRO | Creating Predictable Proven Revenue Processes Daily

7y

Sue, Thanks for this note. We often hear the statistics that 7 of 10 startups fail but don't hear about the "Dark Side" of the start-up world and you've painted a brave face on this. I'm wishing you and the rest of the Vouch team much success in your future endeavours.

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