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Conversation
Highlights
Welcome to another episode of Category Visionaries, the show that explores the future of tech with innovative B2B founders. In today’s episode, we’re speaking with Ben Borodach, CEO and Co-Founder of April, an embedded tax solution that has raised $40 million in funding.
- Ben’s background as a fintech entrepreneur, starting his career at Deloitte Consulting and later building and scaling fintech and cybersecurity companies at Team8, including Curv (acquired by PayPal) and Visible Risk (acquired by BitSight).
- The evolution of fintech from point solutions (1.0) to more holistic offerings (1.5) to the current focus on intelligence and personalization (2.0 or 3.0), with an emphasis on bundling services and leveraging software and AI to provide highly contextual experiences.
- April’s dual customer base: financial partners (e.g., Acorns, Gusto) who can offer tax filing and forecasting services to their customers, and taxpayers who benefit from a more embedded, cost-efficient, and personalized tax experience.
- The challenges of building trust and relationships with mature financial companies, and the importance of leveraging investor networks and expertise to secure early customers and partnerships.
- The lack of innovation in the tax software market, dominated by Intuit’s TurboTax, and the opportunity for April to provide an alternative for finance apps and platforms seeking an independent, integrated tax solution.
- The potential impact of the IRS’s planned direct filing system, and the need for more investment in technology and infrastructure to improve service for taxpayers and software providers.
- The importance of providing taxpayers with options and transparency in pricing, rather than relying on an upsell model that takes advantage of the complexity of tax forms and situations.
- April’s focus on investing in brand and standing for financial outcomes, rather than just tax, and leveraging partnerships to market to captive audiences and reduce customer acquisition costs.
- The critical role of choosing the right co-founder who complements your skills, shares your values, and can challenge you constructively throughout the journey of building a company.
- The long-term vision of providing complete tax visibility across all financial transactions, enabling consumers to make more informed decisions and helping finance platforms serve their users more holistically and profitably.
Actionable
Takeaways
Identify Opportunities for Embedding and Bundling:
April's success is built on the insight that embedding tax services within existing finance platforms can provide a more seamless, contextual, and cost-effective experience for users. Founders should look for similar opportunities to bundle and integrate their offerings, rather than trying to build standalone solutions.
Leverage Investor Networks for Early Traction:
Ben and his team relied heavily on their investors' networks and relationships to build trust and credibility with potential customers and partners. By surrounding themselves with respected investors and advisors, they were able to open doors and secure early wins that might otherwise have been out of reach.
Stand for More Than Your Product:
While April's core offering is tax software, the company's brand and mission are centered around enabling better financial outcomes for consumers. By aligning themselves with a broader purpose and value proposition, founders can differentiate themselves in crowded markets and build deeper connections with customers.
Balance Experimentation with Focus:
In the early stages of a startup, it's important to try multiple approaches and give yourself enough shots at success. At the same time, it's crucial to maintain discipline and focus, avoiding the temptation to spread yourself too thin across too many verticals or initiatives. Strike a balance between exploration and execution.
Choose a Co-Founder Who Complements and Challenges You:
Ben attributes much of April's success to his partnership with his co-founder Daniel, who brings complementary skills, shared values, and a willingness to push back and challenge assumptions. Founders should prioritize finding a co-founder who not only fills gaps in their own expertise but also has the emotional intelligence and communication skills to navigate the ups and downs of startup life.
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