The fintech start-up Zero raises a further $20m, bringing total equity and debt funding to date to $35m.
The financing round is led by New Enterprise Associates. Other investors include SignalFire, Eniac Ventures, Nyca Partners, and Silicon Valley Bank.
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Initially, Zero raised $8.5m in late 2017 from Eniac. In addition, it raised $7m in venture debt from Silicon Valley Bank.
The Zero proposition is a new take on the traditional credit card.
Start-up Zero: bank like debit, earn like credit
In particular, Zero says that it offers the ability to “bank like debit and earn like credit.”
Zero combines a rewards credit card called Zerocard and an FDIC-insured current account called Zero Checking.
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By GlobalDataThe debit-style experience displays transactions from Zerocard and Zero Checking together in the Zero app. This allows cardholders to see one net number they can spend from.
Customers also get the benefit of a system that prevents unplanned or unwanted overspend.
Transactions are enhanced with logos and maps, making it easy to recognise purchases.
“Few people understand how complex it is to launch a credit card or a checking account programme,” says Rick Yang, Partner at NEA.
“Zero is the first US startup to launch a fully integrated and elegantly designed product with both from scratch. Importantly, Zero gives consumers the ability to fully control and understand their own spend. And there is no compromising on rewards — something that traditional account options have failed to provide.”
Zero: cashback offer
Zerocard is Mastercard branded and earns credit card cash back.
Bryce Galen, Founder & CEO of Zero adds: “Apple recently made headlines by saying they’re launching the first credit card that encourages you to pay less interest.
“I think we’ve done one better and launched the first credit card that encourages you to pay no interest.”
Zero is partnering with WebBank, a Salt Lake City-based bank, to issue Zerocard. Deposits are held at Evolve Bank & Trust.
