Daffy Raises $17.1 Million to Help Americans Increase Their Giving
A FinTech startup that helps enable more Americans to give is gaining some funds of its own. This week, Daffy Charitable announced that it had raised $17.1 million. The Series A was led by Ribbit Capital with participation from XYZ Capital and Coinbase Ventures. Additionally, more than 50 angel investors participated, including Reid Hoffman, Aaron Levie, Amy Chang, Dylan Field, John Lilly, and Mike Schroepfer among others. With the newly-raised funds, Daffy intends on scaling its business as well as continuing to innovate its product.
Daffy is a platform that aims to help consumers discover new charities and give more generously more often. Upon making an account, users will be asked to set an annual charitable giving goal. Then, the service can help them automatically make contributions toward that goal.
Moreover, these funds are invested in one of nine portfolio options to help the funds grow. Whenever a user is ready to make a donation, they can choose from more than 1.5 million non-profits to give to.
Offering insight into the idea behind Daffy, the company’s co-founder and CEO Adam Nash explained, “People want to be generous and help those less fortunate than themselves, but we are all busy and life gets in the way. My co-founder Alejandro and I believe that all of the innovations that have helped us shop, save, and plan, Daffy can also use to help people make giving a habit.”
As for what led Ribbit Capital to invest in the platform, Micky Malka said, “Daffy takes many of the amazing innovations we’ve seen in fintech to a large new space, charitable giving. Within seconds, you can donate to your favorite causes and charities from anywhere.” Malka added, “By building a seamless and habit-forming giving experience, Daffy is not only creating a better way to give but a better way to live.”
Daffy isn’t the only FinTech that’s sought to make charitable giving easier. Last year, the neobank Spiral launched, offering a Giving account alongside checking and savings features. What’s more, while Spiral automatically matches up to $20 in donations customers make each year, users can unlock higher matching amounts by meeting specific criteria.
With the backing of big VC names such as Ribbit and XYZ, Daffy’s Series A could certainly be the start of something big. Zooming out, the early success of Daffy along with platforms such as Spiral suggests that charitable giving could be the next vertical to really catch fire in the sector. That makes Daffy a startup worth keeping tabs on.