Update (1/28/21): A previous version of this story indicated that Dave announced new funding on Thursday, but Dave confirmed to Built In that this announcement was actually the closing of a deal previously disclosed in June of 2019.
Fintech startup Dave has grown a lot since it first arrived on the scene in 2017. At launch, the company provided tools to help people avoid overdraft fees. But since then Dave has expanded its products to include budgeting, credit building and job search resources.
And in 2020, the startup officially rolled out Dave Banking, a spending account with no monthly fees and a dedicated debit card. This move positions Dave to take on large banking institutions, and gives the startup room for potential growth — which is why Dave is looking for outside investors.
On Thursday, Dave announced that it secured a $100 million credit facility from Victory Park Capital. This capital will help the company expand its banking product and potentially develop additional financial tools. This deal was first announced in June of 2019, but it didn’t close until this week.
“We look forward to our continued partnership with Dave as the company enters its next phase of growth and progresses in its journey to make banking more accessible,” VPC partner Jason Brown said in a statement. “Dave has amassed millions of loyal members by helping solve simple pain points like overdraft protection and automated budgeting, all while giving back to the community, and we are confident that the company will continue to be a significant challenger to traditional financial institutions.”
The company’s backing from investors is also indicative of a larger boom in fintech, as more people turn toward accessible financial tools during times of economic hardship.
Dave has helped people avoid hundreds of millions in overdraft fees since its inception. It also helped people earn over $150 million collectively through its job seeking feature. Over eight million people use the company’s platform.
This week, Dave also announced the addition of Jarad Fisher as its first chief commercial officer. Fisher was previously a lead executive at Apple, who was responsible for designing and launching the Apple Card credit card. Before that, he was the director of Delta Air Lines’ SkyMiles program. At Dave, Fisher will help lead the company’s product expansion, work to create new partnerships and he will be responsible for the growth of the Dave Banking platform.
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