SAN FRANCISCO – (COMMERCIAL THREAD) – SeedFi, the financial health startup that helps Americans build credit, save money, access funds, and plan for the future, launched today and announced that ‘She had raised $ 65 million in financing, including $ 15 million in equity and $ 50 million in debt. The company’s $ 15 million Series A round was led by Andreessen Horowitz, with participation from Flourish, Core Innovation Capital and Quiet Capital. Andreessen Horowitz, General Partner, Angela Strange, will join the Board of Directors of SeedFi and Emmalyn Shaw, Managing Partner of Flourish Ventures, will join as an Observer of the Board of Directors. The company has raised a total of $ 69 million in funding and will use the new capital to expand its product line and grow its customer base.
SeedFi’s mission is to help Americans break the debt cycle and realize their financial potential. The founding team have years of experience in both mission-driven startups and the world’s largest banks, as well as first-hand knowledge of common financial issues. In an economy where 69% of Americans have less than $ 1,000 in savings and 61% of Americans have no emergency savings at the end of last year, SeedFi is opening new avenues to financial success .
“We saw firsthand how the system was designed to make disadvantaged Americans fail, ”said Jim McGinley, co-founder and CEO of SeedFi. “Our average customer earns $ 50,000 per year, but pays $ 460 per year in overdraft fees and payday loan companies charge an APR of 400% or more. They barely earn enough to cover their expenses and any misstep can set them back for years. Our goal is to tackle the root cause of the problem and leave our customers better off than we found them, so we have structured all of our products to generate savings and build credit. The end goal is to help alleviate this stress and empower people to move towards a better future.
The company launches with two first-class product offerings. The Credit Builder Plan is the best credit building product on the market that creates great long term savings habits. Customers save as little as $ 10 on each paycheck, which is reported to the credit bureaus to establish their credit history, and generate $ 500 in savings in as little as six months. The Borrow & Grow Plan is the first and only digital financial product that provides immediate access to funds while helping customers build savings and credit. It was designed to help end the cycle of debt experienced by many disadvantaged Americans and is a more affordable option than the high-priced installment or payday loans that these consumers often end up turning to.
SeedFi launched in private beta in 2019 to test its products with thousands of Americans and has helped its initial customers save more than $ 500,000 from the current pandemic. 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 score by 45 points.
“There is a huge business opportunity for new entrants to financial services to reach historically underserved populations through better product experiences, better underwriting and better technology, ”said Angela Strange, General Partner at Andreessen Horowitz.SeedFi is on a mission to help Americans achieve long-term financial health and has a powerful platform for broader financial inclusion. I am delighted to join their board of directors and support them in this adventure.
“SeedFi’s seasoned founding team, led by Jim McGinley, is uniquely positioned to deliver innovative lending, savings and credit solutions developed to help financially vulnerable people, ”said Emmalyn Shaw, Managing Partner at Flourish Ventures. “I have invested in the team’s vision and their years of experience building successful financial services companies that have dramatically improved the financial health of Americans. I am honored to be a part of this journey. ”
For more information and to register, visit SeedFi.com.
SeedFi is the financial health startup that helps Americans build credit, save money, access funds, and plan for the future. Created by founders with years of financial technology experience and first-hand knowledge of common financial issues, SeedFi’s mission is to provide a new generation of financial products to underserved Americans to accelerate their economic progress. SeedFi is based in San Francisco and New York and has raised $ 19 million in equity from Andreessen Horowitz, Flourish, Core Innovation Capital and Quiet Capital. For more information and to register, visit SeedFi.com.