Dave (also known as Dave.com
) is a
digital banking service. The service's main focus is on
cash advances.
Services
Dave's main service is
short-term lending. The company does not charge interest, or origination or similar fees, instead charging for expedited service and a monthly fee; to use the service, and giving the option to "tip" the company.
Lauren Saunders of the
National Consumer Law Center expressed concern that some users may feel compelled to tip, resulting in it being not too different from paying interest.
Dave launched a banking service in 2019,
through a partnership with
Evolve Bank & Trust.
It has a service for finding side-work called SideHustle.
History
''
Shark Tank'' star
Mark Cuban led a $3 million seed investment round in the company, saying he was crushed by overdraft fees in his twenties. The CEO of Dave,
Jason Wilk, was the former creator of AllScreen, a company which was also originally funded by Cuban, who put in a $300,000 investment.
After the initial investment in Dave by Cuban and other investors, the total funding of the app has increased to $180 million after the $50 million investment by
Norwest Venture Capital. The Dave app was the Apple App of the Day in April 2017.
It has been downloaded 10 million times on iOS
and over a million times on Android devices.
In July 2019, the company was named one of the next billion-dollar startups by ''
Forbes
''Forbes'' () is an American business magazine founded by B. C. Forbes in 1917. It has been owned by the Hong Kong–based investment group Integrated Whale Media Investments since 2014. Its chairman and editor-in-chief is Steve Forbes. The co ...
''.
In October 2019, Dave received a valuation of US$1 billion, and had over four million users.
Dave was ranked number five in ''Inc. Magazine'' list of 5,000 fastest growing companies for 2021.
Dave went public on
NASDAQ via
SPAC on January 6, 2022 through VPC Impact Acquisition Holdings III created by longtime Dave investor Victory Park Capital.
The initial valuation was $4 billion.
On November 5, 2024, the
Federal Trade Commission
The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) United States antitrust law, antitrust law and the promotion of consumer protection. It ...
filed a complaint alleging that Dave used deceptive advertising, not disclosing fees for their cash advance services, and misrepresenting the amount they would use tips for charity. On December 30, 2024, the
United States Department of Justice
The United States Department of Justice (DOJ), also known as the Justice Department, is a United States federal executive departments, federal executive department of the U.S. government that oversees the domestic enforcement of Law of the Unite ...
filed an amended complaint against Dave and CEO Jason Wilk "for alleged violations of the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA)." In response, Dave stated that "many of the claims are incorrect..." and introduced a fee structure for new customers from December 4 onwards that removed tips and undisclosed fees, with "existing customers...also shifting" to it as well.
References
External links
*
Online banks
Earned Wage Access
Companies based in Los Angeles
2016 establishments in California
Banks based in California
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