Spiral, which has developed a banking solution for the charitable sector, announced on Wednesday a $14 million funding round led by Team8 and with participation from Communitas Capital, Phoenix, Nidoco AB, MTVO, as well as leading financial executives.
Spiral said it will use the funds to launch a new ethical banking app that enables customers to support any charitable cause they care about while earning attractive rates and monthly cash bonuses on their deposits. The company added that it will match the donations of clients up to $150 per year. "Nonprofits can use the app to share engaging content with supporters, increase donations and collect funds without fees. The app is live and will launch to the public next quarter," Spiral wrote in its press release.
“The future belongs to socially-conscious brands that care as much about giving back to society as they do about generating profits and growth," said Shawn Melamed, CEO and co-founder of Spiral. "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.”
Spiral's app includes 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), a simple interface to donate to over one million charities and nonprofits, donation matching of up to $150 per year, and automatic donation reports for tax returns.
Nonprofits that partner 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.
Spiral was founded by serial fintech entrepreneurs Shawn Melamed and Dan Blumenfeld. 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.
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.”