DeFi Savings Platform Donut Raises $2 Million DeFi Savings Platform Donut Raises $2 Million
Donut logo

DeFi Savings Platform Donut Raises $2 Million

Following months of momentum, the past few weeks have been a rollercoaster for cryptocurrencies. Nevertheless, DeFi — short for decentralized finance — and other blockchain-based services have continued to gain the interest of consumers and investors. In fact, one DeFi offering has just revealed its latest funding round.

Donut has announced that it raised $2 million in its latest investment round. Previous investor Redalpine led the round, joined by Inventures, Entrepreneur First, Compound founder Robert Leshner, and other individuals. To date, Donut has now raised a total of $3.8 million following a $1.8 million pre-seed round in 2019. The company says it plans to use the funds to help drive customer acquisition while also further developing its product. Additionally, Donut notes that they intend on closing another round of funding sometime in early 2022.

Like many DeFi platforms, Donut’s banking offerings are built on the Ethereum blockchain. Currently, customers can earn up to a 4% yield from their funds — even at a time when interest rates have remained low for traditional banking products. As a result, according to Donut, the company has seen 40% monthly growth since launching its interest earning account in September of last year. It’s worth noting that the startup’s tremendous growth also came during DeFi’s breakout last year, which saw the DeFi sector explode from $1 billion in value to $60 billion in a matter of months.

Speaking to the startup’s appeal, Donut founder Neel Popat explained, “Today, many people earn less than 0.1% in interest in their bank account. This simply is not acceptable. DeFi lending offers a new way to work your money harder, but significant time investment is required to understand which services to trust. We’re making DeFi accessible to a broader audience, giving them the opportunity to earn 4-10% APY via three simplified options.”

As for what makes Donut an attractive investment for VCs, Inventures partner Simon Leicht said of the company, “Sitting at the intersection of FinTech and DeFi, Donut has done something unprecedented in making a DeFi product that speaks the language of everyday consumers. We firmly believe businesses like Donut will fuel the next stage of growth in the sector by making DeFi accessible in daily financial life. We’re excited to be along for the ride.”

Despite the current troubles of the crypto market, there’s no question that a number of venture capital firms still see the promise that blockchain and the companies that leverage it present. This is evident in Donut’s latest fundraising and will surely prove true with other incoming deals. Another important takeaway from Donut’s early success is the importance of demystifying DeFi as the startup has done. By harnessing the power of blockchain and presenting the benefits to customers in easy-to-understand way, Donut could well be on its way to becoming a DeFi powerhouse.

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...