Total amount raised
$194.6 Millions
Latest funding date
Location
Clair has successfully raised funds through multiple rounds, with its latest being a Debt Financing round that closed on July 6, 2023. The company is backed by 11 investors, including Pathward and Kairos HQ.
Clair offers an Earned Wage Access (EWA) solution, allowing employees to access their earned wages before payday. Keep reading to explore the intricacies of Clair's fundraising journey and the investors backing this innovative platform.
What Is Clair?
Clair, founded on January 1, 2020, is a mission-driven fintech company based in New York, New York. The company was established by Alex Kostecki, Erich Nussbaumer, and Nico Simko.
Operating within the banking, financial services, fintech, and human resources industries, Clair offers a free, compliant, on-demand pay solution backed by an FDIC-insured bank. The company employs between 51-100 people and partners with Pathward and Mastercard to provide its services.
How Much Funding Has Clair Raised?
- Seed Round
- Amount Raised: $4.6M
- Date: October 2020
- Lead Investors: Upfront Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop and launch Clair's on-demand pay solution.
- Series A
- Amount Raised: $15M
- Date: June 2021
- Lead Investors: Thrive Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand Clair's market reach and enhance its financial wellness offerings.
- Series A
- Amount Raised: $25M
- Date: July 2023
- Lead Investors: Thrive Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate the adoption of Clair's services among hourly workers in the U.S.
- Debt Financing
- Amount Raised: $150M
- Date: July 2023
- Lead Investors: Pathward
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide wage advances and support the launch of Clair's free, on-demand pay solution.
Total Amount Raised: $194.6M. Current Valuation: Not publicly disclosed.
Key Investors
- Pathward
- Details: Pathward is an FDIC-insured bank that partners with Clair to support its on-demand pay solution. The bank helps workers get paid as soon as they finish their shifts with zero fees.
- Investment Focus Areas: Not publicly disclosed.
- Notable Investments: Not publicly disclosed.
- Thrive Capital
- Details: Thrive Capital is a venture capital firm that invests in internet and software companies. Kareem Zaki, a Partner at Thrive Capital, is also a board member of Clair.
- Investment Focus Areas: Internet, software.
- Notable Investments: Not publicly disclosed.
- Upfront Ventures
- Details: Upfront Ventures is a venture capital firm that invests in early-stage technology companies. They participated in Clair's $25 million equity round.
- Investment Focus Areas: Early-stage technology companies.
- Notable Investments: Not publicly disclosed.
- Kairos
- Details: Kairos is a venture capital firm that focuses on investing in companies aiming to solve significant societal problems. Michael Presser, an Investing Partner at Kairos, has been appointed as a board observer at Clair.
- Investment Focus Areas: Societal problems.
- Notable Investments: Not publicly disclosed.
What's Next for Clair?
Clair stands at the cusp of significant growth, with opportunities to expand its team and accelerate adoption among the 76 million hourly workers in the U.S. The company’s integration with platforms like TCP Software’s Humanity Scheduling and Gusto Embedded positions it well to capture a substantial market share.
Future fundraising opportunities are promising, with potential for additional equity rounds to further expand services and integrations. As the demand for on-demand pay solutions and financial wellness benefits grows, Clair is likely to attract more venture capital interest.
However, challenges such as ensuring compliance with financial regulations and managing integrations with various platforms could pose hurdles. Competing with other fintech companies and addressing financial literacy among users will also be critical as Clair continues its mission to improve financial health for front-line workers.
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