DALLAS–Dave, a banking fintech that takes aim at overdraft fees and in which Mark Cuban is a principal investor, is going public.
Dave is being valued at approximately $4 billion and is going public via a special purpose acquisitions company, or SPAC. The deal, with VPC Impact Acquisition Holdings III, includes a $210 million investment led by Tiger Global Management.
Cuban is a lead investor and board member at Dave, which has about $122 million in annual revenue and has been profitable since 2018, according to the company.
“Dave is one of many fintech upstarts taking aim at overdraft fees. Those fees, which tend to hit those who can least afford them, have also attracted the ire of regulators,” reported the New York Times in announcing the plans to go public. “Dave says that unlike others tackling overdraft fees by cutting off spending when an account drops to zero, it offers up to $100 in no-interest cash so customers can still pay for daily essentials. Dave collects revenue through $1 monthly membership fees and the tips it asks members to pay, instead of charging them interest.”
Help With Side Hustles
The app also offers a “side hustle” service in which customers can apply for gig economy jobs at companies like Uber to make money.
In an email to the Times, Cuban said he has backed Dave “because the fees (banks) charge to what used to be a captive audience are insane.”