Dave pockets $3m to help users stay out of their overdraft

Spending tracking app Dave has secured $3m in funding from backers including serial VC Mark Cuban.

SV Angel, The Chernin Group and other angel investors also participated in the round.

Dave was founded in September 2016 and aims to help users avoid overdraft fees by tracking their spending habits.

The app notifies users when their seven-day forecast is negative, encouraging them to spend more carefully.

The Los Angeles-based company claims banks made more than $33bn from overdraft fees last year alone with a quarter of Americans overdrafting their accounts.

Dave also allows users to borrow up to $250 to avoid dipping into their overdraft.

Unlike traditional payday lenders the company’s loans have a 0% interest rate.

The company is monetised by asking users to pay it a tip if they like the service.

Dave’s investor Mark Cuban shared his own struggle with overdraft fees, saying: “I invested in Dave because I got crushed by overdraft fees in my 20s.

“For anyone who wants to be successful, I always advise to cut down on useless expenses and save money. Overdraft fees are the definition of useless.”

Copyright © 2017 FINTECH GLOBAL

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