Dave (company)

Dave (previously known as Dave.com[1]) is a digital banking service. The service emphasizes a different approach to overdraft fees, allowing clients to pay $1 a month for $100 in overdraft fee protection.[2]

Dave.com
Traded as
CEOJason Wilk
Industry
URLhttp://dave.com/
RegistrationRequired
Users10 million

History

Shark Tank star Mark Cuban invested $3 million in the company, saying he was crushed by overdraft fees in his twenties.

The CEO of Dave, Jason Wilk, was the former creator of AllScreen, a company which was also originally funded by Cuban who put in a $300,000 investment.[3] [4] After the initial investment in Dave by Cuban and other investors, the total funding of the app has increased to $180 million, after the $50 million dollar investment by Norwest Venture Capital.[5]

The Dave app was the Apple App of the Day in April 2017.[6] It has been downloaded 10 million times on iOS,[6] and over a million times on Android devices.[7]

In July 2019, the company was named one of the next billion dollar startups by Forbes.[6]

In October 2019, Dave received a valuation of US$1 billion, and had over 4 million users.[8][9]

Dave was ranked number five in Inc. Magazine's list of 5,000 fastest growing companies for 2021.[10]

Dave went public on NASDAQ via SPAC on Jan 6 2022 through VPC Impact Acquisition Holdings III created by longtime Dave investor Victory Park Capital.[2][11] The initial valuation was $4 billion.[12]

Services

Dave's launch product is a short term loan. The company does not charge mandatory fees, instead charging a monthly fee to use the app and giving the option to "tip" after getting a loan, and users can pay for expedited service.[9][8] Lauren Saunders, of the National Consumer Law Center, expressed concern that some users may feel compelled to tip resulting in it being not too different from paying interest.[13]

Dave has also launched a banking service, Dave Banking. It was released in 2019.[14] It is available through a partnership with Evolve Bank & Trust.[15][16]

It also has a service for finding side-work called SideHustle.[17]

References
  2. León, Riley de (6 January 2022). "Mark Cuban-backed banking app Dave begins trading on the Nasdaq after completing SPAC merger". CNBC. Retrieved 13 January 2022.
  3. CNBC.com, Ron Grover, special to (2017-11-15). "How relentless emailing helped this 25-year-old snare $300,000 from Mark Cuban". CNBC. Retrieved 2020-06-24.
  4. "Dave CEO Jason Wilk on the startup's stealth funding, working with Mark Cuban, and more". Built In Los Angeles. Retrieved 2020-06-24.
  5. "Finance App Dave Inc. Raises $50 Million | Los Angeles Business Journal". labusinessjournal.com. Retrieved 2020-06-24.
  6. Feldman, Amy. "Next Billion-Dollar Startups 2019". Forbes.
  7. "Dave - Banking For Humans - Apps on Google Play". play.google.com.
  8. "Banking App Dave Reaches $1B Valuation, Plans for 100 Hires Next Year".
  9. "Upstart banking company Dave is now worth $1 billion, as Norwest puts in $50 million".
  10. "An Exclusive Guide to America's Top Private Companies". Inc.com. 2021. Retrieved February 2, 2022.
  11. León, Riley de (January 6, 2022). "Mark Cuban-backed banking app Dave begins trading on the Nasdaq after completing SPAC merger". CNBC. Retrieved February 1, 2022.
  12. "Mark Cuban-backed banking app Dave to go public in $4 bln SPAC merger". Reuters. June 7, 2021. Retrieved February 2, 2022.
  13. Melendez, Steven (May 2, 2017). "Mark Cuban's "Dave" Spots You No-Interest Loans To Avoid Overdraft Fees". Fast Company. Retrieved Oct 30, 2019.
  14. Amore, Samson (February 2, 2022). "Dave Inc. Raises $110 Million, Launches Banking Business". Los Angeles Business Journal. Retrieved February 2, 2022.
  15. Broughton, Kristin (December 13, 2021). "Consumer Finance Startup Dave Eyes Acquisitions, Crypto After SPAC Deal". WSJ. Retrieved February 2, 2022.
  16. Son, Hugh (July 23, 2020). "Mark Cuban-backed finance app Dave says its new mobile bank account is headed for 1 million users". CNBC. Retrieved February 2, 2022.
  17. Wilhelm, Alex (January 6, 2022). "Mark Cuban-backed fintech Dave's public offering puts SPACs to the test". TechCrunch. Retrieved February 2, 2022.
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