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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.

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