When you ask most B2B founders about their market category, you’ll get a carefully crafted answer about creating a new category or disrupting an existing one. But in a recent Category Visionaries episode, Immediate CEO Matt Pierce revealed a more nuanced reality: sometimes the most powerful position is straddling two established categories rather than trying to create a new one.
The Hybrid Category Advantage
“I think we’re kind of in this hybrid between fintech and HR Tech,” Matt explains. While most of Immediate’s team identifies as fintech because “we’re moving money,” their go-to-market motion leverages HR tech dynamics. This dual identity isn’t a bug – it’s a feature.
This hybrid positioning enables Immediate to solve two distinct but related problems:
- For employees: Providing “responsible alternatives to the predatory lending services”
- For employers: “Helping companies in their recruitment and retention efforts”
Why Category Straddling Works Here
What makes this dual-category strategy particularly effective is how it maps to the actual buying process. HR departments are the gatekeepers, but the core value proposition is financial. “We’re helping people from a financial perspective, but we’re also helping companies in their recruitment and retention efforts,” Matt notes.
This approach has led to impressive adoption rates. While overall enrollment averages 24% across industries, some restaurant groups see 50-60% enrollment rates. Meanwhile, biotechnology firms and higher education organizations might see under 10% enrollment – a pattern that validates their vertical-specific approach.
The Implementation Advantage
The hybrid category position also gives Immediate a unique advantage in implementation. Unlike traditional HR tech rollouts that can take months, their fintech DNA enables rapid deployment. “We’ve seen people in as little as ten minutes from the time they open that email, log in and start making their first transaction,” Matt shares.
Metrics That Matter
The success of this category strategy is evident in their growth metrics:
- Six-figure eligible employee base
- Nearly 60 deals closed in the past 100 days
- Zero customer churn since launch
- 24% average enrollment across all industries
- 25-35% enrollment in target verticals (healthcare/hospitality)
The Market Opportunity Ahead
Perhaps the most compelling aspect of this category strategy is its timing. “It’s still less than 15% penetrated. There’s 180 million people in the US workforce,” Matt explains. He predicts that “by 2030 every company in the US is going to be offering some form of earned wage access.”
Lessons for B2B Founders
Immediate’s approach offers several key insights for founders thinking about category strategy:
- Don’t force a new category if you can leverage existing ones
- Consider how your category position affects implementation friction
- Let user behavior guide your category strategy
- Use vertical-specific data to validate your positioning
The Future of Category Creation
While many startups obsess over creating new categories, Immediate’s success suggests an alternative path: finding the powerful intersection between existing categories where you can leverage established buying patterns while delivering novel value.
For B2B founders, the key lesson is clear: sometimes the most effective category strategy isn’t about creating something new, but about finding a unique position at the intersection of established markets. The goal isn’t to be different for difference’s sake, but to align your position with how customers actually buy and use your product.
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