US personal finance app Even gets $40m funding
California-based personal finance app Even has raised $40 million in a second round of financing led by Khosla Ventures.
Khosla also invested in its $1.5 million seed round in January 2015. Even has raised a total of $50.5 million from an investor base that includes Valar Ventures, Allen & Co., and Qualcomm Ventures.
Even co-founder and CEO Jon Schlossberg told the San Francisco Business Times that the start-up will use the fresh capital to double its workforce of 37 over the next eight or nine months, find a new Bay Area headquarters to house the larger staff numbers and open an East Coast corporate office. The company is currently based in Oakland, near BART’s 12th Street station.
Even, founded in November 2014, scored a big win last December when Walmart agreed to offer the start-up’s services to its 1.4 million employees.
The firm explains that employers subsidise the cost of Even for their people. In return, employers save money because it can improve employee retention.
Even charges a monthly subscription fee for its services that include Instapay, the ability to get money earned before payday without additional fees or interest, along with budgeting and saving tools. The start-up also relies on artificial intelligence (AI) to predict a user’s cash flow needs as part of an “okay to spend” feature.
According to the San Francisco Business Times, Even is focused on the Fortune 500, but doesn’t rule out one day offering its services through smaller companies or directly to consumers.
One user comment on Even’s website says: “Works for me. Single mom of three and this app helps me pay bills on time if I need an advance and not get charged late fees when bills are due one day after payday. [Even monthly membership] is worth more than $50 in late fees to me.”
Also on its website, it says 70% of Americans live paycheck to paycheck.
“Struggling is the new normal,” Schlossberg adds.
Ain’t it the truth.
