Digit, a San Francisco-based provider of an automated savings tool for consumers, announced it has raised a $11.3 million Series A round. General Catalyst Partners led the round, which included existing investors Baseline Ventures and Google Ventures. Hans Morris, former president of Visa, and other individual investors also participated in the funding. The company has now raised $13.8 million in total funding.
Digit Raises $11.3M in Series A to Revolutionize Personal Banking
Automated savings with text-based tool strikes chord with millennials using tech to streamline all facets of life
SAN FRANCISCO, Calif., May 5, 2015 – Digit <www.digit.co>, the automated savings tool, has raised a $11.3 million Series A round, led by General Catalyst Partners with participation from existing investors Baseline Ventures and Google Ventures, as well as angel investors including Hans Morris, former President of Visa. The latest round brings the total capital raised up to $13.8 million, which will be used to support Digit’s mission of creating easy-to-use tools that grow personal savings.
Digit makes it incredibly simple to achieve stable financial health by automating savings, and is well-suited to millennials who count on technology to simplify their day-to-day lives. With an SMS-based UI, Digit feels like texting with a friend rather than working with a bank. By automating money management, Digit users are left with more time to do the things they love.
“This is just the beginning of our mission to fundamentally alter this generation’s relationship with money,” said Ethan Bloch, CEO of Digit. “At launch less than three months ago we had saved our users $1,000,000 in total, and today we’ve saving people $1,000,000 per week. There’s an obvious appetite for Digit and we’re only just getting started.”
“The Digit team is focused on delivering a personal finance solution that millennials desire,” said Hemant Taneja of General Catalyst Partners. “We are excited and optimistic that they will build the trusted financial services brand for this demographic.”
Digit connects to a user’s checking account and its intelligent algorithm identifies income and spending patterns to set aside small amounts of money. The amount of money set aside by Digit averages between $2-18, and is pulled at times of the month when users won’t miss it. The money is moved into an FDIC-insured Digit account and can be transferred back into checking at any time, with no transfer fees.
Digit’s popularity is largely attributed to the fun and playful experience it provides. When hitting a savings goal or texting a response of excitement to an account balance, Digit responds with words of encouragement, GIFs of Bill Murray, killer whales, and emoji.
Digit is an automated savings tool with a SMS-based UI that uses an intelligent algorithm to identify small amounts of money that can be moved into a Digit account based on spending and income. The company supports over 2,500 banks and credit unions and all Digit accounts are FDIC insured. Based in San Francisco, CA, Digit has raised a total capital of up to $13.84 million from Baseline, Google Ventures and General Catalyst Partners. Learn more at www.digit.co and @hellodigit
About General Catalyst Partners:
General Catalyst Partners is a venture capital firm that makes early-stage and growth equity investments. The firm backs exceptional entrepreneurs who are building innovative technology companies that transform industries, including Airbnb, BigCommerce, ClassPass, Datalogix, Datto, Demandware, The Honest Company, HubSpot, KAYAK, Oscar, Snapchat, Stripe, and Warby Parker. The General Catalyst partnership leverages its broad experience to help founders build market-leading businesses. General Catalyst has offices in Cambridge, MA, Palo Alto, CA and New York City. For more information, visit: www.generalcatalyst.com or www.twitter.com/gcvp