New fintech startup PrizePool, which combines online banking with a monthly sweepstake designed to incentivize personal savings, has picked up $4.25 million in seed funding.
"It's a new way to save money, and hopefully incentivize folks to save money, for those unexpected expenses," CEO and co-founder Frank Chien told Cheddar.
PrizePool will guarantee $50,000 worth of prizes each month, including at least one $25,000 sum given out to a single winner. The rest of the prizes begin at $2 and go up.
"The way you enter is simply by saving money," Chien said.
The entrepreneur stressed that user deposits will be held by Evolve Bank & Trust, a commercial bank with a footprint in Arkansas and Tennessee.
"So your money is FDIC insured and risk-free completely," he said. "We actually run the entire program under sweepstakes law, so we're completely compliant and eligible in all 50 states."
The startup is also promoting how users can further incentivize each other to save through a system that rewards referrals with a 10 percent bonus on the new user's winnings.
"We're making savings a more shared experience," Chien said. "Every friend or family member that refer to PrizePool gives you more chances to win."
The seed funding will help PrizePool develop its software and pay for a marketing push, he said.
Chien was also behind the education-technology startup LearnSprout, which Apple acquired in 2016. The tech giant at the time was developing educational tools on its iPad product to compete with Chromebook in serving classrooms.
LearnSprout appears to have since been absorbed into the larger company.
Jack Daniels was at the U.S. Supreme Court today. The whiskey-makers argued that a dog toy company violated federal trademark law with a product that parodies the distiller's iconic bottle. The toy is the Bad Spaniels Silly Squeaker toy by VIP products. The first amendment case pits the rights of a famous trademark holder against parody products. Jack Daniel says the toy damages its reputation, especially the references to dog poop.
Alcohol brand White Claw is moving into spirits amid an industrywide shift away from hard seltzers. The spiked seltzer brand announced a new line of regular and flavored White Claw premium vodkas. The bottles are available in select markets across North America and come in an unflavored option as well as pineapple mango and black cherry white Claw has dominated the Heart Seltzer market for years. Now bringing the category into the mainstream as more consumers sought those low calorie alcohol drinks.
Stocks are holding relatively steady Wednesday as Wall Street bides its time until the Federal Reserve’s announcement in the afternoon about whether it will tighten the screws further on the economy.
Meme stocks are rising before the opening bell Wednesday after GameStop, one of the most heavily traded off-brand stocks during the pandemic, posted a surprise profit for the fourth quarter.
The rising cost of groceries is pushing more consumers to use Buy Now Pay Later (BNPL) services for necessities such as groceries, according to new data from Adobe Analytics.
White Claw helped make hard seltzer a staple for American drinkers. Now it's getting into the spirit business with its own vodka brand because of new rules passed during the pandemic.
