RED WING, Minn.–A start-up fintech here, Live.Give.Save. Inc. has been acquired by Reseda Group, a subsidiary of Michigan State University FCU.
As part of the deal, Live.Give.Save. will become a new company called Spave LLC, named after the startup’s mobile app. Live.Give.Save. founder Susan Langer will remain CEO of the new entity, according to the organization.
The app is designed to balance saving, giving, and spending.
According to Twin Cities Business, Langer originally connected with MSUFCU after pitching the app at an expo aimed at presenting new technology to credit unions.
“From the very beginning, I said that I wanted to find a strategic partner,” Langer told Twin Cities Business. “MSUFCU was exactly the right partner. They were looking at building a digital bank themselves, and they saw what we have would help them get there. It was a perfect fit for vision, mission, values—all of it.”
According to the report, Reseda Group will have 80% ownership in Spave, and Langer will own the remaining 20%Q. Live.Give.Save.’s seven employees will continue working remotely; six are in Minnesota, and one is in Texas. Financial terms of the acquisition weren’t disclosed.
What is ‘Spave?’
Launched in July 2018, Spave (a combination of “spend” and “save”) has been billed as a “financial wholeness app that focuses on giving and inspiring social good,” according to its website, Twin Cities Business stated. The app is designed to help consumers (particularly millennials) use their everyday spending habits to give to causes they care about and save for the future.
The app works by deducting “micro-amounts,” set by the consumer, from a primary checking account whenever a debit or credit card linked to the app is used to make a purchase. These “spavings” deductions are then directed to a savings account or charity, as chosen by the user, Twin Cities Business stated.
The Spave app is connected to more than 1.5 million accredited nonprofits, according to the company.
Seeking Partner
“We have been seeking a partner like Live.Give.Save. to evolve our technology offerings and be able to share that technology with the credit union industry,” said April Clobes, CEO of Reseda Group and MSUFCU, in a press release first reported by Twin Cities Business. “The credit union industry is based on the core value of people helping people, and the Spave mobile app provides the platform for helping people through technology.”
Clobes will serve as chairwoman of the new entity.