Spiral, a charitable sector-focused banking solution, today announced $14 million in funding led by global venture group Team8, with participation from Communitas Capital, Phoenix, Nidoco AB, MTVO, and leading financial executives.
They will use the funds to launch a new ethical banking app that enables customers to support any charitable cause while earning interest and monthly cash bonuses on their deposits. Spiral will also match their donations, up to a limit.
Nonprofits can use the app to share content with supporters, increase donations and collect funds without fees. The app is live and will launch to the public next quarter.
“The future belongs to socially-conscious brands that care as much about giving back to society as they do about generating profits and growth. Spiral plans to pioneer the ethical banking industry by creating a new ecosystem solution for more than 100 million charitable givers and 1.5 million non-profit businesses,” said Shawn Melamed, cofounder and CEO. “Not only does Spiral make it easy and engaging for people to support causes they care about but we also financially reward them so they can personally thrive.”
“People are increasingly supporting brands that align with their values,” said Dan Blumenfeld, cofounder and president of Spiral. “And they expect a simple and effortless user experience. Spiral will offer customers both a personalized banking experience and a deeper connection to the charities they support.”
In a release Spiral said its customers will see:
Up to 15 times more on savings than the average bank (based upon an FDIC-determined national average and including the maximum in cash bonuses);
Simple giving to more than one million charities and nonprofits;
Donation matching of up to $150 per year;
Automatic donation reports for tax returns;
Rewards for spending, saving and giving, plus cash bonuses;
No required minimum balance;
No monthly fees for active accounts or fees for transferring money by ACH; and
Nonprofits partnering with Spiral can receive donations without any fees and share content directly through the app to engage supporters. The app also connects to social media, so Spiral customers can promote the causes they support and the donations they make.
Spiral’s list of nonprofit partners includes F4C Foundation for Climate Restoration, David Ortiz Children’s Foundation, CultureForOne, HERHealthEQ, Wayuu Taya, Cerebral Palsy Research Alliance Foundation, Annie Cannon, Campaign to Keep Guns off Campus, Boys and Girls Clubs of Metro Baltimore, The Forbes Funds, Games for Change, Opportunity Junction, Knock Knock Give a Sock, Backpacks for Life, and Foundation Tournesol.
Mr. Melamed is the former managing director of Morgan Stanley’s Technology Business Development and Innovation Offices. He also founded software company Correlix, which was acquired by TSA, and led StrikeNet to its M&A with TMX Group.
Mr. Blumenfeld is the former head of product and growth at Skype. He founded Kifi (acquired by Google) and held leadership roles at Check (acquired by Intuit) and IncrediMail (IPO).
The pair has assembled a team with deep banking and fintech expertise, including Jim Rosenthal, the former COO of Morgan Stanley, who was recently appointed to Spiral’s board.
“We’re excited to back Spiral’s unique vision and incredible growth potential,” said Sarit Firon, managing partner of Team8 Capital. “Brands like Tesla, Whole Foods and Lemonade have galvanized specific demographics to become the front-runners of their industries. Spiral is on a mission to do the same in the world of banking.”
