Ready to build your own Founder-Led Growth engine? Book a Strategy Call
Frontlines.io | Where B2B Founders Talk GTM.
Strategic Communications Advisory For Visionary Founders
Actionable
Takeaways
Design your architecture for product expansion:
Renaud built Upgrade's technology with a modular, componentized architecture of microservices that could be rearranged for different products. This allowed them to reuse 70% of their codebase when launching their second product, dramatically accelerating time-to-market for new offerings.
Create complementary product sequences:
Upgrade deliberately sequenced their product launches to create natural cross-selling opportunities. Their personal loans (which consolidate existing credit card debt) pair perfectly with their credit card (which handles future spending more responsibly). Think about how your initial products can lead customers to need your next offerings.
Leverage low-CAC entry points:
Upgrade acquires 75% of new users through their Buy Now, Pay Later partnerships at virtually no customer acquisition cost, then cross-sells higher-margin products. As Renaud explains, "BNPL is only 20% of our revenue, but 75% of our user acquisitions." Find your own low-friction entry points that can feed your higher-margin business lines.
Build resilience through diversification:
Upgrade created a balanced portfolio of products that perform differently across economic cycles. Their unsecured lending thrives when the economy is strong, while secured loans provide stability during downturns. This diversification allows them to "lean on different products depending on the environment."
Optimize the second time around:
When building Upgrade after Lending Club, Renaud focused on recurring revenue and customer relationships: "At Lending Club, we had mostly one product with revenue that was very front-loaded. Every quarter you had to go out and earn revenue. Upgrade is entirely different—it's a lot of recurring revenue." Design your business model to create predictable, sustainable growth rather than constantly chasing new customers.
Conversation
Highlights
The Upgrade Playbook: How Renaud Laplanche Built His Second Fintech Unicorn in Record Time
From sailing world records to fintech disruption, Renaud Laplanche has never been one to take the conventional path. In a recent episode of Unicorn Builders, the Co-founder and CEO of Upgrade shared insights on how he built his second fintech unicorn after pioneering the industry with Lending Club.
What makes Laplanche’s story particularly compelling isn’t just the $8+ billion valuation Upgrade has achieved, but the speed and strategic precision with which he did it. For B2B founders looking to scale rapidly while building sustainable businesses, his journey offers valuable lessons in product architecture, go-to-market strategy, and creating resilient business models.
The Rebound: Weeks, Not Months
When Laplanche left Lending Club in 2016, he didn’t spend months regrouping. Instead, he moved with remarkable speed to launch Upgrade.
“It was a few weeks later,” Renaud explains about the timeline between ventures. “We got together pretty quickly. I was lucky enough that a lot of the top team at Lending Club and a lot of the shareholders were really unhappy from my side and really wanted to keep working with me.”
This support allowed him to gather resources quickly and apply a decade of learning to build something more sustainable. Within six months of starting, Upgrade had launched its first product. Even more impressively, they reached $1 billion in loan volume in less than a year.
“Between release of inception, getting first employees and launch was about six months. But then from launch to $1 billion in volume was less than a year,” Renaud recalls. “That had taken us almost five years at Lending Club.”
Building for Expansion: The Architecture of Growth
Unlike many startups that focus on getting a single product to market, Laplanche designed Upgrade with multi-product expansion in mind from day one.
“The architecture is very modular, very componentized,” Renaud explains. “It’s a bunch of microservices that are all self-contained and can be deployed and rearranged differently depending on the product.”
This approach has paid significant dividends when launching new products. “Between the personal loan product, the first product we launched, and credit card was the second… the code base is 70% identical,” he notes. “So we were able to reuse a lot of these components to create that new product.”
This architectural decision embodies a key lesson for B2B founders: design your technical foundation not just for your first product, but for the multi-product company you aspire to become.
The Strategic Product Sequence
Perhaps most fascinating is how deliberately Upgrade has sequenced its product launches. Rather than creating disconnected offerings, Laplanche thought carefully about how products would complement each other and create natural upsell opportunities.
“The personal loan is often used to refinance an existing set of credit cards, consolidate cards together and lower the payments,” Renaud explains. “So that takes care of like everything you spent on your credit cards until that point, but it doesn’t take care of the future.”
This insight led to their second product: “We said, okay, if you’ve just refinanced all your credit cards with one loan, then what if we had a new credit card that’s built in a way that it’s already low cost, no fees, and built in a way that you never have to refinance it again, but that takes care of future expenses.”
This complementary approach drives multi-product adoption and strengthens customer relationships, which Laplanche notes improves not just retention but also credit performance: “When you have a choice between making the payments to that company where you also have your bank account or you have two credit cards and auto loan or making rent payments to a company where you’re only getting a personal loan from them… you’re more likely to make the payment with a company that you have a broader relationship with.”
The Low-CAC Acquisition Engine
Upgrade’s customer acquisition strategy demonstrates similar strategic thinking. Rather than competing in expensive direct-to-consumer channels for their main products, they’ve created an ingenious low-cost acquisition funnel.
“We acquire 2.5 million customers every year through BNPL [Buy Now, Pay Later] with virtually no acquisition cost,” Renaud reveals. “We don’t pay the partner for that customer. So we use that as our primary acquisition channel. Then we cross sell higher margin, higher LTV products.”
The numbers are striking: “BNPL is only 20% of our revenue, but 75% of our user acquisitions.” This approach creates exceptional unit economics by sidestepping the high CAC that plagues many fintech companies.
Building for Economic Resilience
Upgrade’s multi-product strategy serves another crucial purpose: creating resilience through economic cycles. This stands in stark contrast to the more vulnerable mono-product approach of Lending Club.
“We have products like credit cards and personal loans, but also unsecured lending that are very profitable when the economy is booming and interest rates are lower,” Renaud explains. “So we can lean on these products during good times, but then sort of lean more on sort of secured prime auto loans or home improvement financing, a lot less sensitive to economic conditions.”
This balanced portfolio approach allows Upgrade to “have these multiple products, multiple channels, different ways to grow depending on the environment.”
The Brand Mission: Beyond Financial Products
Underpinning Upgrade’s growth is a clear brand mission focused on customer improvement rather than just financial products.
“It’s about helping our customers get to the next level, like really sort of upgrade their credit and their finances, sort of make good decisions, good financial decisions that would have a sort of immediate impact, immediate benefit, but also sets them up well for the long run,” Renaud says.
This approach manifests in product designs that incorporate “forced discipline” like their credit card that amortizes down each month rather than allowing customers to make minimum payments perpetually.
Looking Forward: The IPO Question
Having already taken Lending Club public, Laplanche is approaching the potential for an Upgrade IPO with a more measured perspective. “Upgrade is now twice as big as Lending Club was when I took it public and we’re still private,” he notes. “So I’m really taking our time to get there. We’re in no rush.”
He compares the IPO process to a wedding: “The IPO day is amazing obviously, but I like to compare it to a marriage. The wedding day is kind of like the thing you plan for and that generally feels pretty good. But then the day after is beginning of the marriage.”
His advice to founders? “A lot of founders probably spend too much time, like I did, too much time on the wedding day and not enough time on planning the marriage… because operating as a public company is an entirely different ballgame than as a private company.”
The Takeaway: Lessons for B2B Founders
Laplanche’s journey with Upgrade offers several powerful lessons for B2B founders:
- Design your architecture for expansion from day one
- Create complementary product sequences that solve related customer problems
- Find low-CAC entry points to feed your higher-margin products
- Build resilience through product diversification
- Optimize for recurring revenue rather than front-loaded models
- Be deliberate about when and how you go public
As Upgrade continues to grow with six billion-dollar products and counting, Laplanche’s approach demonstrates that second-time founders can leverage their experience to build more sustainable, resilient businesses that scale faster than their predecessors. His “unfinished business” has become a masterclass in strategic growth.
Recommended Founder
Interviews
Jessica Zhang
CEO & Co-Founder of Pier
Jessica Zhang, CEO & Co-Founder of Pier: $2.5M Raised to Build the Future of Credit Infrastructure
Jonas Overgaard
CEO of Anyday.io
Jonas Overgaard, CEO of Anyday.io: $4M Raised to Transform the Buy Now Pay Later Market
Olga Chin
CEO and Founder of InterPrice Technologies
Olga Chin, CEO and Founder of InterPrice Technologies: Over $10 Million Raised to Build the Future of Capital Markets Treasury Management
Scott Dorey
Co-Founder of OpenPath
Scott Dorey, Co-Founder of OpenPath: $25 Million Raised to Build the Future of Payments
Daumantas Dvilinskas
CEO & Co-Founder of TransferGo
Daumantas Dvilinskas, CEO & Co-Founder of TransferGo: $125 Million Raised to Build the Future of Cross-Border Payments
Magali Chapuis
Marketing Manager of Embat
Magali Chapuis, Marketing Manager of Embat: Strategic Insights for Scaling Fintech Marketing Across Borders
Fiona Sherwood
CMO of Dasseti
The Death of Gated Content: Why This CMO Gives Everything Away
Ankit Ratan
Co-Founder and CEO of Signzy
Ankit Ratan, Co-Founder and CEO of Signzy: Over $38 Million Raised to Build the Future of Digital Onboarding Infrastructure
Steffen Vollert
Co-Founder of Volt
Steffen Vollert, Co-founder of Volt: $87 Million Raised to Build the World’s Leading Global Real-Time Payment Network
Ahmad Ibrahim
CEO of NeoTax
Ibrahim, CEO of NeoTax: $13 Million Raised to Build the Future of Tax Automation
Thibaut Sahagian
CEO of Multis
Thibaut Sahagian, CEO of Multis: $9 Million Raised to Build a New Category of Software Designed to Meet the Needs of Web3 Organizations
Fady Hawatmeh
Founder and CEO of Clockwork
Fady Hawatmeh, Founder and CEO of Clockwork: Nearly $3 Million Raised to Make Financial Modeling and Cash Flow Forecasting Easy
Laura Kornhauser
Co-Founder and CEO of Stratyfy
Laura Kornhauser, Co-Founder and CEO at Stratyfy: $10 Million Raised to Power the Future of Financial Inclusion
Nicholas Lembo
VP of Marketing of Coast
Navigating GEO: Earned Media & SEO Tactics That Actually Work
Felix Rodriguez
CEO & Founder of Finally
Felix Rodriguez, CEO & Founder of Finally: $110 Million Raised to Power the Future of Finance Automation
Caleb Avery
Founder & CEO of Tilled
Caleb Avery, Founder & CEO of Tilled: $40 Million Raised to Build (and Dominate) the PayFac as a Service Category
Reed Switzer
CEO of Hopscotch
Reed Switzer, CEO of Hopscotch: $10M to Build the Future of B2B Payments For SMBs
Ben Borodach
Co-Founder and CEO of April
Ben Borodach, Co-Founder and CEO of April: $40 Million Raised to Embed Intelligent Tax Experiences
Steve Pomfret
Steve Pomfret, CEO & Founder of Cygnetise: $8 Million Raised to Build the Future of Signatory Management
Sandro Zweig
CEO and Co-Founder of tiun.
How tiun validated product-market fit with 6-12 months of pilot data before scaling | Sandro Zweig
Swapnil Shinde
CEO and Co-Founder of Zeni
Swapnil Shinde, CEO and Co-Founder of Zeni: $47+ Million Raised to Build the Finance Operations Category
Helen Chong
Head of Growth of Puzzle
Helen Chong, Head of Growth at Puzzle: Collaborating with Founders – Insights for Effective Marketing Alignment
Patrick Mollard
CEO & Co-Founder of Fipto
Patrick Mollard, CEO & Co-Founder of Fipto: $16 Million Raised to Build the Future of Blockchain Payments
Sohaib Zahid
CEO and Co-Founder of Railz
Sohaib Zahid, CEO and Co-Founder of Railz: $15 Million Raised to Build to Accounting Data as a Service Category
Yasmin Graeml
Marketing & Communication Leader of Flourish Fi
Yasmin, Marketing & Communication Leader at Flourish Fi: Driving Financial Engagement with Innovative Tech
Kalpesh Kapadia
CEO and Founder of Deserve
Kalpesh Kapadia, CEO and Founder of Deserve: $50 Million Raised to Build the Future of Credit Cards
Iris Pfeifer
VP of Growth of Wisetack
Iris Pfeifer, VP of Growth at Wisetack: Mastering B2B Marketing Through Sales Alignment and Product Strategy
Carmen Li
CEO of Silicon Data
Carmen Li, CEO of Silicon Data: $5M+ Building the World’s First GPU Compute Risk Management Platform
Julio Martínez
Co-Founder and CEO of Abacum
Julio Martínez, Co-Founder and CEO at Abacum: $40 Million Raised to Build the Future of FP&A
Tal Shahar
CEO & Co-Founder of Atlas Invest
Tal Shahar, CEO & Co-Founder of Atlas Invest: $13 Million Raised to Transform Real Estate Financing
Rodney Reisdorf
Co-Founder & CEO of Co-Founder & CEO
Rodney Reisdorf, CEO of Verivend: $3 Million Raised Transform Private Capital Transactions
Omri Mor
CEO & Co-Founder of Routable
Omri Mor, CEO & Co-Founder of Routable: $100 Million Raised to Transform AP Automation for Fast-Growing Companies
Nathan Beckord
CEO of Foundersuite
Nathan Beckord, CEO of Foundersuite: $13 Million Raised to Build the Go-To Platform for Startup Fundraising
Don Muir
CEO of Arc
Don Muir, CEO of Arc: Over $180 Million Raised to Empower Startups with a Better Cash Management Experience
Debbie Soon
Head of Marketing of Privy
Storytelling for Technical Products w/ Debbie Soon
Matt Bivons
CEO & Founder of Canopy
Matt Bivons, CEO & Founder of Canopy: $30M Raised to Build a Modern Servicing Platform for Scaling FinTechs
Stephany Kirkpatrick
CEO and Founder of Orum
Stephany Kirkpatrick, CEO and Founder of Orum: Over $85 Million Raised to Build an API integration for Instant Payouts
Nik Talreja
CEO & Co-Founder of Sydecar
Nik Talreja, CEO & Co-Founder of Sydecar: Over $16 Million Raised to Make Venture Deal Execution a Frictionless Process
Chandini Jain
CEO & Co-Founder of Auquan
Chandini Jain, CEO & Co-Founder of Auquan: $8 Million Raised to Transform Financial Intelligence Through AI
Rafael Loureiro
CEO of Wealth
Rafael Loureiro, CEO of Wealth: $16 Million Raised to Build the Future of Estate Planning
John Lunn
CEO and Founder of Gr4vy
John Lunn, CEO and Founder of Gr4vy: $27 Million Raised to Build the Future of Payments Infrastructure
Bryan McCarty
Director of Product and Product Marketing of Orum
Donuts & Product Launches: Orum’s Unconventional Event Strategy
Daniel Grunstein
CEO and Co-Founder of Crowded
Daniel Grunstein, CEO and Co-Founder of Crowded: $6.4 Million Raised to Transform Nonprofit Financial Management
Klas Bäck
CEO & Co-Founder of Pagos
Klas Bäck, CEO & Co-Founder of Pagos: $44 Million Raised to Power the Future of Payments Operations
Bob Suh
CEO of OnCorps
Bob Suh, CEO of OnCorps: $18M Raised to Help Large Financial Institutions Solve Operational Problems with AI
Halle Kaplan-Allen
Head of Marketing of Sydecar
Why LinkedIn Thought Leader Ads Beat Traditional B2B Creative
Jeremy Almond
CEO & Founder of Paystand
Jeremy Almond, CEO & Founder of Paystand: $100M Raised to Power the Future of B2B Payments
Tate Hackert
Co-founder & Chief Strategy Officer of ZayZoon
How ZayZoon built 300+ payroll partnerships to reach 15,000 businesses without direct sales | Tate Hackert
Jack McDonald
CEO of PolySign
Jack McDonald, CEO of PolySign: $50 Million Raised to Power the Future of Digital Assets
Henrique Dubugras
Co-Founder and Co-CEO of Brex
Henrique Dubugras: the Story of Brex ($12 Billion+ Valuation)
Arik Shtilman
CEO of Rapyd
Arik Shtilman, Rapyd: $15 Billion Valuation (Unicorn Builders)
Shamir Karkal
Co-founder and CSO of Sila
Shamir Karkal, CEO of Sila: $20+ Million Raised to Build the Money API For Fintech
Daniele Grassi
CEO of Axyon AI
Daniele Grassi, CEO of Axyon AI: $5.5 Million Raised to Power the Future of Financial Markets with AI
Florian Wimmer
Co-Founder & CEO of Blockpit
Florian Wimmer, Co-Founder & CEO of Blockpit: $15 Million Raised to Power the Future of Crypto Tax Management
Wade Arnold
CEO and Founder of Moov
Wade Arnold, CEO and Founder of Moov: $77.5 Million Raised to Build the Future of Embedded Payments
Steven Greene
CEO of Standard Practice
Steven Greene, CEO & Co-Founder of Standard Practice (Previously Nibble Health): $8 Million Raised to Bring the Fintech Revolution to the World Healthcare Payments
Ben Goldin
CEO and Founder of Plumery
Ben Goldin, CEO and Founder of Plumery: $4.5 Million Raised to Power the Future of Digital Engagement for Banks
Patricia Montesi
CEO & Co-Founder of Qolo
Patricia Montesi, CEO & Co-Founder of Qolo: $30 Million Raised to Build the Future of Omnichannel Payments Infrastructure
Brian King
CEO of LODAS Markets
Brian King, CEO of LODAS Markets: $8.5 Million Raised to Power the Future of Alternative Investments
Eric Velasquez Frenkiel
Founder and CEO of Pomelo
Eric Velasquez Frenkiel, CEO of Pomelo: $70 Million Raised to Build the Future of Remittance
Colin Luce
CEO & Co-Founder of Basis Theory
Colin Luce, CEO & Co-Founder of Basis Theory: $20 Million Raised to Build the Future of Payments Tokenization
Ron Benegbi
CEO & Founder of Uplinq
Ron Benegbi, CEO & Founder at Uplinq: Over $5 Million Raised to Transform SMB Lender’s Existing Credit Evaluation Process