Wednesday, June 12, 2024
21.9 C
New York

Lack of funding forces US credit card fintech Ness to close down

  • Ness Closure Announcement:
    • US fintech Ness, specializing in credit cards for wellcare, is shutting down.
    • CEO Derek Flanzraich cites running out of cash as the reason for the closure.
    • Despite raising $15.5 million in a seed funding round in May 2022, the company failed to secure additional funds in time.
  • Funding Efforts and Challenges:
    • Anticipating another fund raise, Ness aimed for an additional $40 million but couldn’t secure it.
    • The CEO highlights efforts to re-envision the business, cut costs, and pitch to numerous investors over the past year.
  • Market Changes and Business Challenges:
    • Flanzraich acknowledges changes in the market and the failure of the expected $40 million funding.
    • Despite efforts to adapt and cut costs, the company faced challenges in redefining its business model.
  • Company Background:
    • Founded in May 2021, Ness focused on credit cards linked to rewards, medical benefits, and health insurance.
    • Aimed at encouraging “healthy spending” through partnerships with brand partners.
  • Remaining Assets and Future Plans:
    • Flanzraich plans to sell the remaining assets of the company.
    • Expresses intention to join an existing firm rather than founding a new one.
  • LinkedIn Post and Reflection:
    • Flanzraich reflects on the difficulties faced by the company and expresses how things might have been done differently in hindsight.
    • Indicates a willingness to sell remaining assets to aspiring entrepreneurs.

Hot this week

Banking as a Service: Meaning, Examples, Benefits and Future

The push for open banking has led to a...

What is Fintech?

Fintech: A term used to refer to innovations in...

Best fintech blogs and websites

Fintech (financial technology) has been an interesting part of...

How to buy shares online

Buying shares online in India has come a long...

Is it worth investing in life insurance over 60?

Is it worth investing in life insurance over 60? As...

U.S. Bank taps Greenlight for family-focused money management tools

U.S. Bank Partners with Greenlight to Enhance Financial Literacy...

Finseta offloads non-trading subsidiary Capital Currencies to undisclosed buyer for £150,000

Summary of Finseta's Sale of Capital Currencies:Transaction Overview:...

Peru becomes first South American country to adopt NPCI’s UPI tech

Summary of BCRP and NPCI International Partnership:Partnership Overview:...

Beobank selects Viva to power new corporate payment solutions for SMEs in Belgium

Beobank and Viva Partnership - Key Points:Partnership Objective:...

Siri and Google Assistant look to generative AI for a new lease on life

There’s a lot riding on next week’s WWDC 2024...

Centenary Bank embarks on tech overhaul with Oracle Flexcube core banking system

Centenary Bank Technology Transformation - Key Points:Bank Overview:...

Related Articles

Popular Categories