Dave Inc., a Mid-Wilshire tech startup backed by entrepreneur Mark Cuban has raised $10 million of a planned $15 million in its latest debt financed round, according to Securities and Exchange Commission filings.
This is the third round of funds Dave has raised since the company was founded in 2016 by Jason Wilk. The company said in an April 30 filing that it had raised $6.25 million of the $10 million round and amended its filing July 20 to it had raised an additional $3.75 million. A total of nine investors have contributed funds to the round.
The company is Wilk's third venture backed by Cuban, and Cuban said in a statement last year that he invested in the company because he was “crushed” by overdraft fees when he was younger and believes in cutting off “useless expenses.”
Dave is designed to help users avoid bank-issued overdraft fees by reading provided checking account information, analyzing recurring costs, and predicting the lowest balance the account will have before the user’s next paycheck. If needed, users can apply for payday loan up to $250 with no annual percentage rate and pay it back as soon as possible by scheduling a withdrawal of the funds from their linked account. A Dave membership costs users approximately $1 per month, according to the company.
To date, Dave has raised $22.6 million buoyed by investments from musician Thomas Pentz (known by his stage name Diplo), former MCA Enterprises Ltd. executive Skip Paul, and CSC Generation Inc. executive and Torrance native Justin Yoshimura.
Tech reporter Samson Amore can be reached at firstname.lastname@example.org or (323) 556-8335. Follow him on Twitter @samsonamore.
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