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Daylight, an LGBTQ+ banking platform, is shutting down. Its operations will stop on June 30, in response to embattled co-founder and CEO Rob Curtis.
The announcement comes months after NY Journal printed an explosive characteristic on the neobank. The article honed in on Daylight, whose seed and Collection A fundraises TechCrunch had lined right here and right here, respectively. NY Magazine’s piece detailed a lawsuit introduced on by three former staff in addition to alleged fabrications and inappropriate habits on the a part of Curtis.
In a weblog printed right this moment, Curtis mentioned he felt like “now could be the precise time to exit this market” and instructed prospects that their “cash is secure and can be totally accessible for switch by 30 June.”
He added: “Daylight had a fantastic run paving the way in which for US LGBTQ+ prospects — we opened hundreds of trans-inclusive debit accounts, supported hundreds of potential LGBTQ+ dad and mom’ plans for his or her households. Finally, although, we couldn’t present these providers in a manner that lined our prices — that is probably a job for large banks and I hope they choose up the torch and carry ahead our legacy.”
Based in 2020, Daylight raised a complete of $20 million in funding. Anthemis Group led its $15 million Collection A in 2022. Different backers embody Kapor Capital, Precursor Capital, Clocktower, Monetary Enterprise Studio and Citi.
Quickly after overlaying the surprising allegations, the corporate reached out to TechCrunch with a press release from Curtis, who struck again at former staff. Basically, Curtis mentioned the firm “regretted” that “some former staff felt dissatisfied” that the corporate “wouldn’t transcend the scope” of its mission and make investments its “sources in addressing systemic, societal points affecting LGBTQ+ individuals.” He added: “We’re equally unhappy that we couldn’t meet their private expectations of start-up tradition and proceed to want them the very best sooner or later.”
The previous staff alleged age and wage discrimination, whistleblower retaliation and fraud. For instance, Terrance Knox — who’s Black — claimed to have made $85,000 lower than his white friends. The lawsuit additionally alleges that Curtis “made up” a projection that Daylight would course of $500 million in transactions by the tip of 2023.
The CEO instructed TechCrunch that the previous staff’ claims have been “fabricated,” including: “We disagree wholeheartedly with their damaging characterization of our enterprise, and Daylight is totally ready to handle these considerations in courtroom.”
On the time of its seed increase, the corporate mentioned its merchandise have been designed to advertise monetary equality and inclusion for the estimated 30-million-plus People who determine as LGBTQ+. The startup additionally deliberate to construct out a LGBTQ+ enterprise market and a platform that provided reductions and rewards when members store at retailers whose actions assist the queer group.
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Received a information tip or inside details about a subject we lined? We’d love to listen to from you. You’ll be able to attain me at maryann@techcrunch.com. Or you may drop us a notice at suggestions@techcrunch.com. Pleased to respect anonymity requests.
Daylight, the LGBTQ+ neobank, calls it quits by Mary Ann Azevedo initially printed on TechCrunch
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