Lili, a startup structure banking products to meet the needs of freelance employees, is revealing that it has actually raised$10 million in seed financing. The start-up takes its name from its creators, CEO Lilac Bar David and CTO Liran Zelkha, who previously founded Israeli opposition bank Pepper. Bar David informed me that while lots of neobanks have emerged over the previous few years, most of them “are really focused on the customer side.”
More broadly, she recommended that no conventional banking options are actually developed to resolve the problems dealt with by freelancers– whether they’re designers, developers, physical fitness trainers, chefs or charm specialists. She described Lili as the very first “all-in-one” solution, using both a checking account and a wider suite of monetary tracking tools.
The account includes a Visa service debit card and is unencumbered by account charges, overdraft fees, foreign deal costs or minimum balance requirements. Bar David stated Lili only makes money from card processing costs, which indicates “we will earn money whenever you’re generating income.”
Lili likewise supports direct deposit, saying it offers access to payments as much as 2 days earlier than a standard bank. And to help freelancers manage their finances, there’s a tool for tracking and categorizing expenses, and another tool that will put a portion of income into a sub-account for taxes.
The startup approximates that it can conserve freelancers approximately 60 hours and $1,700 each year. (Bar David said customers may choose to use private Lili products, but “the advantages of using the product are certainly enhanced when you use it as your primary account.”) The company released in 2019 and states it’s already used by tens of thousands of freelancers across all 50 states in the U.S.
Bar David likewise recommended that the freelance economy is only going to grow with the financial instability caused by the COVID-19 pandemic, with millions more individuals turning to freelance work as either their primary income source, or as a supplement.
The funding was led by Group 11, with involvement from Foundation Capital, AltaIR Capital, Main Venture Partners and Torch Capital.
“Lili is redefining banking for freelancers and we’re thrilled to be partnering with the team,” stated Group 11’s Dovi Frances in a declaration. “As the future of work continues to develop more quickly than ever in these unpredictable times, Lilac and Liran’s positive vision is changing how contemporary workers handle their finances, while saving them valuable money and time.”
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.