Financial health startup SeedFi launches and announces $ 65 million in funding to help underserved Americans build credit and savings to accelerate economic progress
SeedFi, the financial health startup that helps Americans build credit, save money, access funds, and plan for the future, launched today and announced it has raised 65 million dollars in financing, including $ 15 million in equity and $ 50 million in debt. The company’s $ 15 million Series A was led by Andreessen Horowitz, with participation from Flourish, Core Innovation Capital and Quiet Capital. Andreessen Horowitz General Partner Angela Strange will join SeedFi’s Board of Directors and Flourish Ventures Managing Partner Emmalyn Shaw will join as a Board Observer. The company has raised a total of $ 69 million in funding and will use the new capital to expand its product line and expand its customer base.
SeedFi’s mission is to provide a new generation of financial products to underserved Americans to accelerate their economic progress. 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 money issues. In an economy where 69% of Americans have less than $ 1,000 in savings and 61% of Americans ran out of emergency savings late 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 they pay $ 460 per year in overdraft fees and payday loan companies charge them APRs 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 create 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 Borrowing & Growth Plan is the first and only digital financial product that provides immediate access to funds while helping clients build savings and credit. It was designed to help end the cycle of debt for 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 a private beta in 2019 to test its products with thousands of Americans and has helped its initial customers save over $ 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, underwriting and technology experiences,” said Angela Strange, general partner of Andreessen Horowitz. “SeedFi is on a mission to help Americans achieve long-term financial health and has a powerful platform for greater financial inclusion. I am delighted to join their board and support them on this journey.
“SeedFi’s seasoned founding team, led by Jim McGinley, is uniquely positioned to provide innovative lending, savings and credit solutions developed to help financially vulnerable people,” said Emmalyn Shaw, Managing Partner of 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 trip. “
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 fintech experience and first-hand knowledge of common money issues, SeedFi’s mission is to deliver a new generation of financial products to underserved Americans to accelerate their progress. economic. 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.