New fintech startup PrizePool, which combines online banking with a monthly sweepstake designed to incentivize personal savings, has picked up $4.25 million in seed funding.
"It's a new way to save money, and hopefully incentivize folks to save money, for those unexpected expenses," CEO and co-founder Frank Chien told Cheddar.
PrizePool will guarantee $50,000 worth of prizes each month, including at least one $25,000 sum given out to a single winner. The rest of the prizes begin at $2 and go up.
"The way you enter is simply by saving money," Chien said.
The entrepreneur stressed that user deposits will be held by Evolve Bank & Trust, a commercial bank with a footprint in Arkansas and Tennessee.
"So your money is FDIC insured and risk-free completely," he said. "We actually run the entire program under sweepstakes law, so we're completely compliant and eligible in all 50 states."
The startup is also promoting how users can further incentivize each other to save through a system that rewards referrals with a 10 percent bonus on the new user's winnings.
"We're making savings a more shared experience," Chien said. "Every friend or family member that refer to PrizePool gives you more chances to win."
The seed funding will help PrizePool develop its software and pay for a marketing push, he said.
Chien was also behind the education-technology startup LearnSprout, which Apple acquired in 2016. The tech giant at the time was developing educational tools on its iPad product to compete with Chromebook in serving classrooms.
LearnSprout appears to have since been absorbed into the larger company.
What do Arnold Schwarzenegger, Aubrey Plaza, and Tom Brady all have in common? You'll see them on Super Bowl Sunday, but not on the field. If you only watch the Super Bowl for the ads, here's a sneak peek.
The Federal Communications Commission knows (to loosely quote Drake) "when that [AI robocall] hotline bling, that can only mean one thing" — deception. The agency says bad actors have been using these voices to misinform voters.
David Stryzewski, CEO of Sound Planning Group, breaks down Disney’s latest results, from adding Taylor Swift to building out ESPN, and why Bob Iger’s leadership is crucial.
Kevin Cohee, CEO and chairman of OneUnited Bank, discusses the power of financial literacy and how education and technology can help bridge the racial wealth gap.
Alex McGrath, Chief Investment Officer at NorthEnd Private Wealth, discusses why the A.I. hype can’t power the market forever and how to position investments in the current market.
Paul Verna of Insider Intelligence breaks down how the company is positioned, whether they can make their streaming service profitable, and the upper limit of streaming bundle prices.
From Flamin’ Hot Cheetos to Sweet Heat Starburst, America’s snacks are getting spicier. Now, Coca-Cola wants in on the trend. The beverage giant introduced Coca-Cola Spiced, the first new permanent offering to its North American portfolio in three years.
