Reworking wealth: These 6 startups are changing how money works

by Hannah Levy
March 6, 2019

Money is a concept. Something that human beings have collectively decided is worth something, and that we trade for things that are very much real. Like work, food — and Netflix subscriptions.

How humans have traded money has continued to change throughout the centuries, and with the emergence of fintech, the largest shift may be yet to come. Nowadays, you can lend money to friends with a swipe on your smartphone. You can pay the bill with a tap of your smartwatch. You can buy items online at the click of a button — and it’s making us all a little more poor.

And that’s just the tip of the iceberg.

From micro-loans to cognitive tools that curtail bad buying habits, the reach of financial technologies is cropping up everywhere and in every sector. We looked into six LA companies at the forefront of that trend. Here’s how they’re changing the way wealth works. 

 

Screenshot on a phone
photo via aspiration

Founded in: 2013  

Funding to date: $67.5M

HQ: Marina del Rey

Stash it away sustainably: Aspiration offers a suite of online tools that help users invest sustainably and with social conscience. The company aims to help people improve their own financial situations while making a positive impact on the world.

In the news: The fintech startup made Fast Co’s list of the most innovative companies of 2018. Late the previous year, the company closed a $47 million Series B, including backing from Social Impact Finance and Alpha Edison, as well as a number of high-profile individual investors. Among them: Orlando Bloom, Los Angeles Clippers coach “Doc” Rivers, Bad Robot President Brian Weinstein and Rustic Canyon Partners founding partner Tom Unterman.

 

Funraise team playing ping pong
photo via funraise

Founded in: 2015

Funding to date: $12.7M

HQ: Long Beach

A new way to fundraise: Funraise’s public fundraising platform helps nonprofits get their mission out there and raise money to meet their goals. The company is an affordable alternative for small nonprofits or those running on a shoestring budget, and offers a suite of tools that simplify the process of raising money from beginning to end.

In the news: In 2018, Funraise raked in $9.7 million. The Series A funding will be used to expand the company’s product and technology teams and hire in sales and marketing. The best way to understand Funraise’s model and character is to check out the music video they created on the “about” page of their website. Whimsical and financially savvy — we like it.

 

Happy Monday sign
photo via happy money

Founded in: 2009

Funding to date: $71.6M

HQ: Costa Mesa

Invest in happiness: Happy Money is focused on the psychology of money, and how a person’s relationship to capital — whether growing or shrinking — can make them happier and more fulfilled. The company developed a virtual money coach that gives users insights on whether they should make a purchase based on how happy or sad it makes them feel. The accompanying app, Joy, also provides users with daily savings recommendations and puts the extra change into a free FDIC-insured savings account.

In the news: Happy Money launched under the umbrella of fintech company Payoff in late 2017. The company has since forged partnerships with Alliant, Fenwick & West and Silicon Valley Bank, among others.  

 

Hands on a keyboard
photo via shutterstock

Founded in: 2017

Funding to date: $12M

HQ: Newport Beach

Game your way into savings: Blast, a fintech gaming startup from the co-founders of Acorns, provides users the chance to receive micro-payments for playing popular mobile games. Gaming companies can offer users small rewards (think: a penny) to incentivize continued play. At the same time, that money is funneled directly into an FDIC-backed savings account that pays interest.

In the news: The company has a collective $12 million in funding under its belt to date. Its latest round, raised in the summer of 2018, brought in $7 million from investors including Core Innovation Capital, as well as famed life coach Tony Robbins.  

 

The team at Currency
photo via currency

Founded in: 2001

Funding to date: Unknown

HQ: Santa Monica

Get funded faster: Currency Capital provides online financing solutions for small and medium-sized businesses — you know, the ones our economy is built on. The company prides itself on finding funds for businesses faster than any other alternative on the market, thanks to its online marketplace.

In the news: The company has raised an undisclosed amount of funding. Its most recent round was in early 2017. Since going live, the company has grown an enviable list of online partners including eBay, AuctionTime and HiBid.

 

Produce Pay team outside
photo via produce pay

Founded in: 2014

Funding to date: $94.9M

HQ: Downtown

A farmer’s best friend: ProducePay offers financing help to farmers of fresh foods like fruits and veggies that have a shorter shelf life and are therefore riskier to lend money for. The company buys crops at a set price and sells them on the farmer’s behalf. The money from that sale goes directly into the farmer’s pocket, minus a small commission.

In the news: The company, which was launched by two grads of Cornell’s esteemed agriculture school, scored a $14 million Series B in late 2018. Co-founder and CEO Pablo Borquez Schwarzbeck told Built In LA that the new funds would be used to fuel growth, including expansion into South American markets, where a great many fresh crops are grown.  

 

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