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Banking app Dave announced Monday that the company will make its market debut through a SPAC merger with VPC Impact Acquisition Holdings III. The company has attracted institutional investors including Tiger Global who now value the fintech start-up at $4 billion.
Dave — shorthand for the hero in the David vs. Goliath tale — is designed to eliminate many of the features customers can’t stand about legacy banks. The company started with overdraft fees. For a $1-per-month membership fee, users can access checking accounts with no fees and up to $100 in overdraft protection without fees or interest. Members who sign up for direct deposit also get automated budgeting and the ability to build up their credit scores through the reporting of rent and utility payments to credit bureaus. The company says it has helped its customers avoid nearly $1 billion in overdraft fees through its ExtraCash feature, and helped gig workers earn more than $200 million from their side hustles through its sharing-economy job board, Side Hustle. Co-founder and CEO Jason Wilk, who founded three other start-ups and counts Mark Cuban as an early investor, believes consumers should get credit for doing the right thing consistently.
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