"Today, a dollar circulates for 20 days in the white community but only six hours in the Black community."
"It’s no secret that traditional banks have failed the Black and Latinx community," said Ryan Glover . "We needed to create a new financial platform that understands our history and our needs going forward, a banking platform built by us and for us, a platform that helps us build a stronger future for our communities. This is our time to take back control of our lives and our financial future. That is why we launched Greenwood, modern banking for the culture."
Greenwood’s founders include:
Additionally, Greenwood plans to work with brick and mortar minority-owned banks to provide deposits to help strengthen historically black banks
"The work that we did in the civil rights movement wasn’t just about being able to sit at the counter. It was also about being able to own the restaurant," said Ambassador Andrew Young . "We have the skills, talent and energy to compete anywhere in the world, but to grow the economy, it has to be based on the spirit of the universe and not the greed of the universe. Killer Mike, Ryan and I are launching Greenwood to continue this work of empowering black and brown people to have economic opportunity."
SAN FRANCISCO, Oct. 18, 2017 (GLOBE NEWSWIRE) — According to a recent survey, small businesses are falling through the cracks of the banking industry. Big banks don’t always offer the service small businesses need, and community banks don’t always provide the technology small business customers are looking for. Seed is providing an alternative to traditional banking by offering a full-service online banking service designed specifically for the 28 million small businesses in the US.
San Francisco, UNITED STATES
National study reveals big banks aren’t empowering small businesses; Seed’s banking app is designed exclusively for the modern small business
“Traditional banks have struggled to take care of their small business customers because they only have two banking options to offer — consumer or enterprise. Consumer banking products don’t offer all of the features and service small businesses need, while enterprise offerings are unnecessarily complicated and expensive,” said Brian Merritt, co-founder and CEO of Seed. “Seed is solely focused on serving the small business community. We’re responding to the frustrations of small business owners by offering an alternative to the status quo — a complete online banking service designed just for them.”
Meanwhile, managing cash flow is the number one financial challenge every small business has, but according to Seed’s survey, banks are not helping. Less than one-third of banks offer financial insights and only 24 percent of banks provide owners with advice on how to manage their business.
In response to these challenges, Seed provides a full suite of banking features built into easy-to-use, beautifully designed online app, including a Visa ® Business Debit card, free bill pay, transfers, mobile deposits, and electronic vendor payments via ACH or paper check.
Originally founded in 2014, the company went through Y Combinator’s accelerator program in the winter 2015 batch. Its largest venture round, some $5 million led by General Catalyst, was announced in October 2015.
In response to inquiries from Crunchbase News, Seed co-founder Brian Merritt said that “We’re not shutting the company down,” though he said Seed will be “shutting down our direct offering” and has notified its existing users of the impending change. “Going forward we are focused on software licensing and services for banks and non-banks,” Merritt told Crunchbase News.
According to Crunchbase data, the company has raised $5.2 million in known venture funding from a pretty hefty set of investors. The company’s stakeholders include institutional investors at Y Combinator, CrunchFund, 8VC, SV Angel, and General Catalyst. Individual and angel investors include Founders Fund partner Cyan Banister, Scott Banister, Box founder Aaron Levie, Nuzzel founder Jonathan Abrams, and YC partners Paul Graham, Paul Bucheit, Michael Siebel, and Dalton Caldwell, among other investors publicly disclosed by the firm.
On Wednesday, San Francisco-based Seed, a venture-backed online banking platform for freelancers and small business owners, sent an email to its users announcing it will be winding down its customer-facing service.
In its email to users, the company said that “Seed is shutting down. We’ve done everything we could to avoid this situation, but we must close all customer accounts over the coming weeks. Needless to say, we’re heartbroken, and especially regret the impact this will have on our customers, because our whole mission was to make things a little easier for each of you.”
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The company continued, “While we ultimately weren’t able to create a sustainable alternative to the big banks, we’re glad that we tried.” The email said that all user accounts must be closed by the end of November, and that all accounts with remaining balances will be closed and the company will send a check to the account-holder with the remaining balance.