Qapital, a personal finance app, has raised $12 million in Series A funding from notable investors like Northzone, Anthemis Exponential Ventures, Industrifonden and Rocketship VC. The company plans to use the funds to strengthen its platform and lay the groundwork for continued reinvention in the financial services sector.
Based in New York and Stockholm, Qapital uses behavioral economics to bridge the gap between intention and action when it comes to money management. The app encourages users to save for things they aspire for by turning everyday habits and guilty pleasures into opportunities to save.
“We’ve been impressed by what the Qapital team has achieved since we first invested. The fantastic user engagement speaks for itself: the team has built a product that customers really love and the app is consistently rated one of the best personal finance apps in the industry. With millennials looking for banking solutions that put user experience first, we are excited about what the future holds,” said Pär-Jörgen Pärson, New York-based Partner, Northzone.
Founders George Friedman and Erik Akterin plan to go beyond savings, and help millennials better translate money into happiness. Working with Dan Ariely, Qapital’s Chief Behavioral Economist, Qapital uses the power of incrementalism to keep goals within reach.
“Our young audience has a natural distrust of traditional banks, but they love using Qapital to help them be more intentional with their money. It’s amazing how things change when people are clear on their goals and can visualize achieving their goals,” said George Friedman, Co-founder and CEO.
Qapital allows users to set a goal and accumulate savings triggered by everyday behaviors, such as grabbing a morning coffee or ordering take-out. It uses IFTTT (If This Then That) technology, giving users the opportunity to save money by using their favorite apps, like posting a photo to Instagram or reaching a target on Fitbit.
In under two years, Qapital claims to have added 180,000 users who have opened and funded savings accounts and it is adding 10,000 new users accounts each week.
“With this round of funding, we will continue to marry the latest behavioral economic science with cutting-edge technology and beautiful design,” said Ben White, Chief Experience Officer, Qapital.
White further explained that the startup is working towards creating new experiences that deliver constant small wins for users, helping them gain competence and confidence which leads to savvier spending and more successful savings.