US fintech start-up CapWay shuts down
CapWay, a US-based financial inclusion-focused fintech, has shut down, with founder Sheena Allen announcing on LinkedIn that the start-up “is no longer an active business”.
CapWay’s founder Sheena Allen announced the company’s closure on LinkedIn
Launched in 2016 and headquartered in Atlanta, Georgia, CapWay offered a range of financial products, including financial literacy modules, digital banking services, and savings tools, with the aim to provide “financial access and opportunities to everyone”.
CapWay reportedly raised a total of $770,000 since its launch, according to PitchBook, and was backed by Y Combinator.
Co-founder and CEO Sheena Allen announced the firm’s closure on LinkedIn, stating: “Although it has been a while, I am finally making the announcement that CapWay is no longer an active business. I am proud of the work we were able to accomplish, but honestly disappointed that we couldn’t complete the mission.”
“There is still much work to be done in the financial inclusion space, but I am not yet convinced that those who can write a check are ready to write a check large enough or have the patience it will take to see the change, particularly from Black and brown fintech founders. It will take more than a few million dollars and a few years! It’s a long game,” Allen writes.
Allen adds: “Yes, we dealt with a lot of investors who said no because they had ‘already invested in the other Black-owned debit card company.’ Some said it verbatim, and others didn’t, but we got it… a lot. That, or they felt we were so far behind in the amount raised, it was a lost cost.”
Looking ahead, Allen describes herself as a “founder at heart” and notes that while “nothing is solidified,” she plans to “continue working in the financial inclusion space in some capacity”. She currently states she is in the “ideation phase of a few ideas for what could be my next start-up”.
