Consumers seeking prize-linked savings resulted in tremendous growth after seed funding in August 2020
SAN FRANCISCO, June 02, 2021 (GLOBE NEWSWIRE) -- PrizePool, the popular prize-linked savings accounts, announced today it has raised $10 million in Series A funding, led by M13 and seed investors including Accomplice, Bling Capital, World Innovation Labs, and Coatue. Prior to this round, PrizePool raised $4.3 million in funding from seed investors.
PrizePool was founded with a mission to incentivize Americans to save more and build a better financial foundation. Launched in the midst of the pandemic, PrizePool has since seen explosive growth, enticing tens of thousands of savers to save tens upon tens of millions of dollars. The company also has high engagement rates with 70 percent of savers coming back to the app weekly. To date, about 10,000 PrizePool savers have won more than $400,000, and at this rate, PrizePool will give away close to $1M in prizes by the end of the year to help people achieve their financial goals.
“At M13, we care about the consumer’s overall wellness, and financial wellness is something we have been exploring,” said Carter Reum, Co-Founder and Partner of M13. “I am impressed by Prizepool's engagement and how the platform changes people’s lives for the better through savings. We’re excited to be on this journey with PrizePool to help people improve their financial health.”
Before the pandemic, Americans were not saving enough, and when the global health crisis caused millions to lose their jobs, an emergency fund was a luxury many did not have. Meanwhile, a majority of Americans spend millions on the lottery every week in hopes of a big win – spending more than $91 billion on lottery tickets in 2019 – and the actual odds of winning are low.
PrizePool flips the concept of gambling on its head by applying the notion of winning to savings. This notion has the potential to benefit consumers for the long-term – gamifying a ‘chore’ to help people save even more.
“We’re changing fundamental behaviors when it comes to savings,” said Frank Chien, Co-founder and CEO of PrizePool. “With tens of thousands of savers signing up in less than a year, we know this is something consumers want and a proven incentive for Americans to kick start their savings. The funding from M13 will help accelerate our mission, expand our team by 150% and launch debit cards.”
PrizePool will be expanding their offerings to include debit cards in the fall, so all savers can access their money for everyday costs while saving for their future. Details of the debit cards will come later this year.
PrizePool’s mission is to incentivize all Americans to save more and build a better financial foundation. PrizePool ups the game of today’s boring, low-growth, savings accounts. It gives customers a new, fun place to save -- one where their money is their chance to win real, cash prizes guaranteed to total $50,000 every month. Even if savers don’t win cash prizes, the account is FDIC-insured and will earn a 0.30% interest rate. By automating and gamifying savings, PrizePool not only benefits savers by making financially-sound decisions but also helps them stay actively engaged in their savings and financial goals. For more information please visit www.getprizepool.com. PrizePool is available nationwide and can be downloaded for free on iOS and Android. Follow PrizePool on Twitter @prizepool.