According to the latest finance news, a US-based personal finance platform has secured $40 million through its latest round of crowdfunding. This round was led by Keith Rabois of Khosla Ventures, and other participants such as Valar Ventures, Allen & Company, Ron Conway, Harrison Metal and Silicon Valley Bank.
The company recently formed a national program with retail giant Walmart. Jon Schlossberg, CEO of Even, aims to improve the plight of ordinary Americans and their personal and professional finances. With a huge new bucket of capital, Even can see their dreams and aims materializing. Keith Rabois lead the first round with $40 million investment.
With this latest round of capital, Even has managed to raise almost $50.5 million. They first launched their app to offer income smoothing for workers, by helping them avoid usurious payday loans in order to make ends meet.
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Schlossberg realized that one of the only ways to improve the finances for the working class is by helping them budget better. Schlossberg says, “Today, something like 0.1% of humans are working on our hardest problems. Imagine if, instead of 0.1%, just 1% of the world’s population had the luxury of solving our hardest problems. Ten times as many bright minds. Where would we be today?” he further adds “High-cost financial services such as credit card interest short-term loans, and overdraft fees cause Americans to spend $240 billion every year in unneeded costs. By contrast, Even’s business model is set up so we only profit when our customers do. We charge a flat, predictable monthly subscription, like Netflix. In exchange, our members get a new set of financial services, built from the ground up to fit into busy people’s lives, so they actually use them—to spend smarter, avoid debt, and save money. If people see value in those services and keep using them, we profit; if they don’t, we don’t.”
The funds from the investment round will be used to continue the development of Even’s financial wellnesses tools.
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