SeedFi Donates $ 65 Million to Help Americans Create Credit and Savings – Crunchbase News

Saving and building credit are two of the most difficult challenges for a majority of Americans. In fact, statistics show that 69% of Americans have less than $ 1,000 in savings, while 61 percent exhausted his emergency savings at the end of last year.

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“I grew up in central Texas in a poor family and I know the hardships of being low income,” said SeedFi COO and co-founder Eric burton, said in an interview. “Credit is a necessity of life, but I went to school and found myself trapped in a cycle of debt.”

San Francisco-based SeedFi is creating a platform for Americans who lack the resources to build credit, save money, access funds, and plan for the future.

The financial health firm on Wednesday announced a $ 65 million increase, which included $ 15 million in Series A funding and $ 50 million in debt. build their credit history and generate $ 500 in savings in as little as six months, and the Borrowing and Growth Plan provides immediate access to funds while helping clients build savings and credit.

Andreessen Horowitz led Series A and was joined by Thrive in companies, Capital of basic innovation and Quiet capital. SeedFi has now raised a total of $ 69 million in funding since its inception in 2019, Jim McGinley, co-founder and CEO of SeedFi, told Crunchbase News.

McGinley and Burton both have credit card industry backgrounds, as well as mission-driven startups. For Burton, SeedFi’s mission is particularly personal after losing a banking job due to poor credit.

What They Both Saw While Working – McGinley at A capital letter, and later with Burton at the personal loan company Opportune, was that even the most well-meaning person can get into debt.

“If they have an urgent need, the reality is the need isn’t the problem, it is if they don’t have the savings to meet it,” Burton added. “The idea we learned is to combine savings and credit to meet the immediate need for credit in a way that will allow them to be better off and move towards a better financial future. “

SeedFi intends to use the funding to grow its customer base while marketing its products nationwide with banking partners. In addition, the company will expand its product line, McGinley said.

Build up savings, credit history over time

Since the platform’s launch in 2019, SeedFi has tested its products on thousands of customers and helped them save more than $ 500,000 through 2020, McGinley said.

Additionally, after six months of on-time payments, SeedFi customers with no credit history were able to establish a credit score of 600, while customers with existing credit scores and less than three credit accounts increased their credit score. 45 points.

“We are able to show that we have made a positive impact, as well as helping people avoid evictions and save more emergencies,” McGinley said. “Our next step is to create a product line, expand nationwide, and grow. “

Meanwhile, as part of the investment, Andreessen Horowitz General Partner Angela strange to join SeedFi Board of Directors and Managing Partner of Flourish Ventures Emmalyn shaw will join as an observer of the board of directors.

Flourish enjoys investing in fintech disruptions, as well as those that have an impact, and Shaw sees SeedFi in a technologically unique position to deliver money-saving credit and lending products.

“SeedFi targets the 70 percent of people living paycheck to paycheck,” Shaw said in an interview. “Building credit is an Achilles heel for people, so giving them loan products and a savings component will help them break the cycle of poverty by adopting good financial habits. “

Drawing: Li-Anne Dias

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