InstaSwitch Raises $4.7M in Seed Funding Led by Chicago Ventures

About 5.4 million small businesses in the U.S. try to switch banks each year, but most of them are unable to complete the process, and as more companies enter banking through digital platforms, acquisitions, and fintech expansion, the cost of accounts that are opened but never used continues to rise.

InstaSwitch removes the hassle of switching banks by automating the entire process—covering payroll, income, and spending—using an AI-driven system so financial institutions can turn new accounts into active primary relationships at scale.

Early customer results show a strong impact for InstaSwitch, with Arc seeing activated accounts holding 13.1x higher balances than average, and Lettuce reporting thousands of accounts migrated, millions of dollars moved, and over 80% completion rates among users who start the process, based on internal data.

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“This is why we built InstaSwitch, because every institution should be winning primary relationships, not just collecting names in a system,” said West.

"Customer account migrations fail because people see the work involved and stop,” said Ran Harpaz, Founder and CEO, Lettuce Financial. “We were able to move millions of dollars, migrating thousands of accounts, with over 80% of our customers completing the full flow without dropping off. Cannot imagine having to do this without InstaSwitch."

"Billions of dollars in business banking revenue walk out the door every year through accounts that open and never activate,” said Stuart Larkins, General Partner, Chicago Ventures. “We backed InstaSwitch because they are the first team we have seen actually fix it. Their customers' results prove it."

"The account opening is not the win. The win is the primary relationship, which only happens when the money actually moves,” said Daniel West, Founder and CEO of InstaSwitch. “Switching a business bank account means updating payroll, income platforms, vendor payments, and client direct deposits, each through a separate portal, separate authentication, and separate manual steps. The automation required to help users actually complete a business bank switch still does not exist anywhere else. That is what we built.”

About InstaSwitch

Founded by Daniel West, InstaSwitch is based in New York with an office in Chicago and provides account activation tools for business banking, helping companies move payroll, payments, vendors, and clients into new accounts through an embedded or hosted flow, and it is SOC 2 certified. It has passed due diligence at a large financial institution.

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