Total amount raised
$174.5 Millions
Latest funding date
August, 2022
Location
Empower has successfully raised significant funding through multiple rounds, including a Series B, to support its mission of providing affordable credit solutions. The platform offers services like cash advances, automatic savings, and a line of credit to help users manage their finances effectively.
Keep reading to explore the details of Empower's fundraising journey and the investors who are backing this innovative financial technology company.
What Is Empower?
Empower, founded in 2016 by Justin Ammerlaan and Warren Hogarth, is a financial technology company based in San Francisco, California. The company focuses on providing affordable credit solutions to help users manage their finances effectively.
Empower offers services such as cash advances, automatic savings, and a line of credit. These features are designed to improve financial health and provide accessible credit options for everyday Americans.
With a team of 11-50 employees, Empower continues to grow and innovate in the fintech space, aiming to make financial management easier and more accessible for its users.
How Much Funding Has Empower Raised?
- Seed Round (May 9, 2017)
- Amount Raised: Not disclosed
- Date: May 2017
- Lead Investors: Sequoia Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Initial funding to develop the platform and launch the service.
- Seed Round (Sep 19, 2018)
- Amount Raised: $4.5M
- Date: September 2018
- Lead Investors: Initialized Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the platform's capabilities and grow the user base.
- Series A (Mar 5, 2020)
- Amount Raised: $20M
- Date: March 2020
- Lead Investors: Defy Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance data science capabilities and financial coaching services.
- Series B (Jul 8, 2021)
- Amount Raised: $150M
- Date: July 2021
- Lead Investors: Blisce
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and further develop financial products.
Total Amount Raised: $174.5M. Current Valuation: Not publicly disclosed.
Key Investors
- Blisce
- Details: Blisce is a venture capital firm that invests in high-growth technology companies. They focus on supporting companies that have a positive impact on society.
- Investment Focus Areas: Technology, consumer internet, media.
- Notable Investments: Spotify, Pinterest.
- Defy Ventures
- Details: Defy Ventures is a venture capital firm focused on early-stage investments. They aim to back innovative startups with strong growth potential.
- Investment Focus Areas: Technology, consumer products, financial services.
- Notable Investments: Figma, Airbase, Owl Labs.
- Initialized Capital
- Details: Initialized Capital is an early-stage venture capital firm. They are known for their hands-on approach in helping startups grow.
- Investment Focus Areas: Technology startups, particularly in the early stages.
- Notable Investments: Coinbase, Instacart, Reddit.
- Sequoia Capital
- Details: Sequoia Capital is a prominent venture capital firm that invests in seed stage, early stage, and growth stage companies. They have a long history of backing successful startups.
- Investment Focus Areas: Technology, healthcare, consumer services, financial services.
- Notable Investments: Apple, Google, LinkedIn, PayPal, WhatsApp.
- Icon Ventures
- Details: Icon Ventures is a venture capital firm that focuses on investing in technology companies at the growth stage. They aim to support companies that are leaders in their respective fields.
- Investment Focus Areas: Enterprise software, consumer internet, digital health.
- Notable Investments: Datadog, FireEye, Teladoc.
What's Next for Empower?
Empower stands at the cusp of significant growth opportunities, driven by the increasing demand for digital banking solutions. With a focus on democratizing access to financial expertise and products, Empower leverages AI and human coaching to offer personalized financial advice. This unique approach positions the company to capture a larger share of the $2 trillion U.S. consumer financial services market.
Future fundraising appears promising, given the successful Series A round and the growing market demand. Empower may attract further investments to expand its services and user base. However, the company faces challenges such as intense competition from other fintech firms and the need to maintain user trust and data security.
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