Dave (company)

Dave (also known as Dave.com[1]) is a digital banking service. The service' main focus is on cash advances.[2] This service works off of tips and subscription fees rather than overdraft fees.[2]

Dave.com
Traded as
HeadquartersLos Angeles, California
CEOJason Wilk
Industry
URLdave.com
RegistrationRequired
Users10 million

Services

Dave's main service is short-term lending. The company does not charge interest, or origination or similar fees, instead charging for expedited service, and a monthly fee to use the service, and giving the option to "tip" the company.[3][4] 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.[5] Dave launched a banking service in 2019,[6] through a partnership with Evolve Bank & Trust.[7][8] It has a service for finding side-work called SideHustle.[9]

History

Shark Tank star Mark Cuban led a $3 million seed investment round in the company, saying he was crushed by overdraft fees in his twenties. The CEO of Dave, Jason Wilk,[10] was the former creator of AllScreen, a company which was also originally funded by Cuban who put in a $300,000 investment.[11][12] 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 investment by Norwest Venture Capital.[13] The Dave app was the Apple App of the Day in April 2017.[14] It has been downloaded 10 million times on iOS,[14] and over a million times on Android devices.[15] In July 2019, the company was named one of the next billion dollar startups by Forbes.[14] In October 2019, Dave received a valuation of US$1 billion, and had over 4 million users.[4][3]

Dave was ranked number five in Inc. Magazine's list of 5,000 fastest growing companies for 2021.[16] 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][17] The initial valuation was $4 billion.[18]

References
  1. "Archived copy". Archived from the original on 2022-04-23. Retrieved 2022-04-23.{{cite web}}: CS1 maint: archived copy as title (link)
  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. "Upstart banking company Dave is now worth $1 billion, as Norwest puts in $50 million". 30 September 2019.
  4. "Banking App Dave Reaches $1B Valuation, Plans for 100 Hires Next Year".
  5. Melendez, Steven (May 2, 2017). "Mark Cuban's "Dave" Spots You No-Interest Loans To Avoid Overdraft Fees". Fast Company. Retrieved Oct 30, 2019.
  6. Amore, Samson (February 2, 2022). "Dave Inc. Raises $110 Million, Launches Banking Business". Los Angeles Business Journal. Retrieved February 2, 2022.
  7. Broughton, Kristin (December 13, 2021). "Consumer Finance Startup Dave Eyes Acquisitions, Crypto After SPAC Deal". WSJ. Retrieved February 2, 2022.
  8. 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.
  9. Wilhelm, Alex (January 6, 2022). "Mark Cuban-backed fintech Dave's public offering puts SPACs to the test". TechCrunch. Retrieved February 2, 2022.
  10. "Jason Wilk".
  11. 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.{{cite web}}: CS1 maint: multiple names: authors list (link)
  12. "Dave CEO Jason Wilk on the startup's stealth funding, working with Mark Cuban, and more". Built In Los Angeles. Retrieved 2020-06-24.
  13. "Finance App Dave Inc. Raises $50 Million | Los Angeles Business Journal". labusinessjournal.com. October 2019. Retrieved 2020-06-24.
  14. Feldman, Amy. "Next Billion-Dollar Startups 2019". Forbes.
  15. "Dave - Banking For Humans - Apps on Google Play". play.google.com.
  16. "An Exclusive Guide to America's Top Private Companies". Inc.com. 2021. Archived from the original on 29 January 2022. Retrieved February 2, 2022.
  17. 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.
  18. "Mark Cuban-backed banking app Dave to go public in $4 bln SPAC merger". Reuters. June 7, 2021. Retrieved February 2, 2022.


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