| CEO | Jason Wilk |
|---|---|
| Industry | |
| Total assets | $1 billion |
| URL | http://dave.com/ |
| Registration | Required |
| Users | 10 million |
Dave (sometimes known as Dave.com) is a digital banking service. The service emphasizes a different approach to overdraft fees, allowing clients to pay $1 a month for $100 in overdraft fee protection.[1]
History
editShark Tank star Mark Cuban invested $3 million in the company, saying he was crushed by overdraft fees in his twenties. Lauren Saunders, of the National Consumer Law Center, expressed concern that some users may feel compelled to tip resulting in it being not too different from paying interest.[2]
The CEO of Dave, Jason Wilk, was the former creator of AllScreen, a company which was also originally funded by Cuban who put in a $300,000 investment.[3][4] After the initial investment in Dave by Cuban and other investors, the total funding of the app has increased to $180 million, after the $50 million dollar investment by Norwest Venture Capital.[5]
The Dave app was the Apple App of the Day in April 2017.[6] It has been downloaded 10 million times on iOS,[6] and over a million times on Android devices.[7]
In July 2019, the company was named one of the next billion dollar startups by Forbes.[6]
In October 2019, Dave received a valuation of US$1 billion, and has over 4 million users.[8][9] In 2021, Dave responded to the COVID pandemic by transitioning its workforce to a primarily virtual model with the same pay regardless of where staff choose to live.[10] Dave was ranked number five in Inc. Magazine's list of 5,000 fastest growing companies for 2021.[11]
Dave investor Victory Park Capital created a special-purpose acquisition company called VPC Impact Acquisition Holdings III that Dave merged with in preparation for an initial public offering.[12] The merger included $210 million in additional investments from venture capitalists.[13] Through VPC, Dave became a public company on NASDAQ on January 6, 2022.[12] The IPO valued the business at $4 billion.[13] The bank went public via SPAC in early 2022.[1]
Services
editDave created a banking services division called Dave Banking in 2019.[14] The following May, it introduced online bank account services through a partnership with Evolve Bank & Trust.[15][16] It also has a service for finding side-work called SideHustle.[17] The app uses an algorithm to predict users ability to repay loans based on their checking account and income history. The algorithm predicts when a user's expenses may exceed their balance, sending a notification and the option for a loan until the user's next paycheck. The company does not charge overdraft fees, instead charging a monthly fee to use the app and giving the option to "tip" after getting a loan.[9][8]
References
edit- ^ a b León, Riley de (6 January 2022). "Mark Cuban-backed banking app Dave begins trading on the Nasdaq after completing SPAC merger". CNBC. Retrieved 13 January 2022.
- ^ Melendez, Steven (May 2, 2017). "Mark Cuban's "Dave" Spots You No-Interest Loans To Avoid Overdraft Fees". Fast Company. Retrieved Oct 30, 2019.
- ^ CNBC.com, Ron Grover, special to (2017-11-15). "How relentless emailing helped this 25-year-old snare $300,000 from Mark Cuban". CNBC. Retrieved 2020-06-24.
{{cite web}}: CS1 maint: multiple names: authors list (link) - ^ "Dave CEO Jason Wilk on the startup's stealth funding, working with Mark Cuban, and more". Built In Los Angeles. Retrieved 2020-06-24.
- ^ "Finance App Dave Inc. Raises $50 Million | Los Angeles Business Journal". labusinessjournal.com. October 1, 2019. Retrieved 2020-06-24.
- ^ a b c Feldman, Amy. "Next Billion-Dollar Startups 2019". Forbes.
- ^ "Dave - Banking For Humans - Apps on Google Play". play.google.com.
- ^ a b "Banking App Dave Reaches $1B Valuation, Plans for 100 Hires Next Year".
- ^ a b "Upstart banking company Dave is now worth $1 billion, as Norwest puts in $50 million".
- ^ Hrushka, Anna (August 3, 2021). "Neobank Dave shifts to virtual-first model, implements national pay scale". Banking Dive.
- ^ "An Exclusive Guide to America's Top Private Companies". Inc.com. 2021. Retrieved February 2, 2022.
- ^ a b León, Riley de (January 6, 2022). "Mark Cuban-backed banking app Dave begins trading on the Nasdaq after completing SPAC merger". CNBC. Retrieved February 1, 2022.
- ^ a b "Mark Cuban-backed banking app Dave to go public in $4 bln SPAC merger". Reuters. June 7, 2021. Retrieved February 2, 2022.
- ^ Amore, Samson (February 2, 2022). "Dave Inc. Raises $110 Million, Launches Banking Business". Los Angeles Business Journal. Retrieved February 2, 2022.
- ^ Broughton, Kristin (December 13, 2021). "Consumer Finance Startup Dave Eyes Acquisitions, Crypto After SPAC Deal". WSJ. Retrieved February 2, 2022.
- ^ Son, Hugh (July 23, 2020). "Mark Cuban-backed finance app Dave says its new mobile bank account is headed for 1 million users". CNBC. Retrieved February 2, 2022.
- ^ Wilhelm, Alex (January 6, 2022). "Mark Cuban-backed fintech Dave's public offering puts SPACs to the test". TechCrunch. Retrieved February 2, 2022.
External links
edit