document.write(''); Daylight, the LGBTQ+ neobank, is calling for an end to it - Simo Baha

Daylight, the LGBTQ+ neobank, is calling for an end to it

Daylight, the LGBTQ+ banking platform, is shutting down. It will cease operations on June 30, according to Rob Curtis, co-founder and CEO of embattled.

The announcement comes months after NY Magazine published an explosive feature on the neobank. It article: was honed at Daylight, whose seed and Series A fundraisings were covered by TechCrunch here and: here, accordingly. The NY Mag article detailed a lawsuit filed by three former employees, as well as alleged fraud and misconduct by Curtis.

In blog Published today, Curtis said he felt “now is the right time to exit this market,” he told clients that their “money is safe and fully available for transfer by June 30”.

He added. “Daylight has had great success paving the way for US LGBTQ+ customers; we’ve opened thousands of trans-inclusive debit accounts, supported thousands of prospective LGBTQ+ parents with plans for their families. However, in the end, we were unable to provide these services in a way that covered our costs; This is probably the job of the big banks and I hope they pick up the torch and carry our legacy forward.”

Founded in 2020, Daylight has raised a total of $20 million in funding. Anthemis Group has led its $15 million Series A in 2022. Other backers include Kapor Capital, Precursor Capital, Clocktower, Financial Venture Studio and Citi.

Shortly after covering the shocking allegations, the company reached out to TechCrunch with Curtis’ statement, which hit back at former employees. Essentially, Curtis said the company “regrets” that “some former employees felt disappointed” that the company “would not go beyond its mission and invest its “resources in addressing systemic, social issues affecting LGBTQ+ people.” He added: “We are equally saddened that we could not live up to their personal expectations for the fledgling culture and continue to wish them the best for the future.”

Former employees alleged age and wage discrimination, whistleblower retaliation and fraud. For example, Terence Knox, who is black, claimed he earned $85,000 less than his white peers. The lawsuit also alleges that Curtis “made” a projection that Daylight would process $500 million in transactions by the end of 2023.

The CEO told TechCrunch that the former employees’ claims are “fabricated,” adding: “We strongly disagree with their negative characterization of our business, and Daylight is fully prepared to address these concerns in court.”

At the time of seeding, the company said its product was designed to promote financial equality and inclusion for the more than 30 million Americans who identify as LGBTQ+. The startup also planned to create an LGBTQ+ business marketplace and platform that offered discounts and rewards when members shopped at merchants whose operations support the queer community.

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Daylight, the LGBTQ+ neobank, is calling it quits by Mary Ann Azevedo, originally published on TechCrunch.

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