With today’s economic landscape — ranging from recession concerns to rising interest rates — financial health-related matters have never been more critical. Companies like Discover Bank have moved to the forefront with the intention of helping startups focused on financial health.
The Discover Financial Health Improvement Fund
Discover Bank has launched the Discover Financial Health Improvement Fund, a mission-oriented investment fund geared toward supporting startups and early-stage tech companies.
These companies aim to enhance the financial wellness of low- and moderate-income individuals, communities and small businesses. The bank has kick-started the fund with an initial capital pledge of $36 million.
“We continually explore innovative ways to support our communities in which we operate, and creating the Discover Financial Health Improvement Fund is a unique way of doing that,” said Matthew Parks, vice president of Discover Bank. “As technology continues to evolve, we want to fund entrepreneurs who have identified creative ways to benefit those of modest means. It is our expectation that these technologies can both be profitable and beneficial to the community.”
With more than $30 million to invest, it’s safe to say that the Discover Financial Health Improvement Fund has the funding needed to make a major impact on financial health startups and their customer base.
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Discover Bank Has Help
Discover Bank isn’t tackling this project on its own. It has partnered with some of the biggest names in the financial sector, including:
Financial Health Network: Will collaborate with the investment fund to assess startups based on their potential to enhance financial wellness
ResilienceVC: Will manage Discover’s earlier-stage investments
Chartline Capital: Will manage Discover’s late-stage investments.
Considering the significant number of consumers and small businesses that lack access to affordable and appropriate financial products, Discover recognizes a prime opportunity. The bank aims to develop successful business models while concurrently improving the financial circumstances of low- and middle-income people, especially in the Mid Atlantic region.
You, Too, Can Invest In Early-Stage finance startups
As an individual retail investor, you also have the opportunity to invest in early-stage finance and tech companies. Changes in federal law mean anyone can invest in startups. For example, you can invest online through StartEngine, the largest U.S.-based equity crowdfunding platform.
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This article Discover Launches Fund For Startups Focused On Financial Health originally appeared on Benzinga.com
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