Publications
Publications
- September 2024
- HBS Case Collection
Comun: Partners in Peril
By: Jeffrey J. Bussgang and Alexis Lefort
Abstract
In spring 2023, Abiel Gutierrez and Andres Santos, co-founders of Comun, faced a critical decision at their fintech startup serving Latino immigrants. Having launched their product the previous year, they experienced rapid growth but encountered rising fraud and increasing regulatory barriers imposed by their banking partner, Piermont. These challenges threatened the company's core value proposition and the viability of its unit economics. Gutierrez and Santos were at a crossroads: Should they switch partners, a risky move given their limited financial runway, or stick with their current flawed infrastructure and risk stalling the company's growth? The case explores the complexities of partner reliance, regulatory hurdles, and the difficult strategic choices early-stage startups must navigate.
Keywords
Fintech; Business Development; Venture Capital; Business Startups; Partners and Partnerships; Governing Rules, Regulations, and Reforms; Financial Services Industry; Banking Industry; Latin America; United States
Citation
Bussgang, Jeffrey J., and Alexis Lefort. "Comun: Partners in Peril." Harvard Business School Case 825-036, September 2024.