GoSave, a Santa Monica, California-based digital “piggy bank” and financial literacy app provider, is in process of its seed raise, said Andrew Birt, co-founder and CEO.
The company is in the midst of its seed raise of $750K, which it expects to close in June, he said. GoSave has been capital efficient so far with only raising $320K in total funding to get its product to market. The upcoming round will fund the company for the next 12 months, at which point it will pursue its Series A round of $4m to $6m.
GoSavers are smart piggy banks with an intuitive touch screen and an iOS and Android application that help you teach your child about savings, rewards, goals, chores and financial literacy, according to the company.
The seed round will finance GoSave’s UK and US market launches, Birt said. Additionally, GoSave will use funds for scaling its infrastructure to support customers and product development such as engineering and software enhancements. It is in a 1000 product unit trial with a financial institution, and it will use capital to support the trial and scale up as demand increases, he added.
The company is about 24 months away from its Series A round, he said. The funds from the Series A round will take GoSave from three customers to 20 to 25 customers globally.
It expects to reach annual revenue of AU$10m by 2022. Eventually, GoSave expects revenue to take over and fund the company so that it will not be in constant fundraising mode.
GoSave is interested in investors with expertise and success in the fintech market, Birt said. Venture capital firms with growth curve stories within their portfolios and ones that would participate in future funding rounds would make sense. Approaches are welcome as GoSave continues to have relationship building conversations. Additionally, banking institutions could be strategic investors, but they would also need to be customers in order for them to both align accordingly.
COVID-19 has slowed its fundraise process in some ways as now Birt is engaging in Zoom video calls with potential investors instead of traditional face-to-face meetings, he noted.
GoSave is rolling out its digital piggy banks with a banking partner in Australia this month, he said. The company is seeking additional partnerships for the UK and US markets. It is already in conversations with potential banking partnerships and is willing to entertain additional approaches.
The fintech is aiming to teach kids about saving money in a cashless economy, said Birt. GoSave was co-founded by two dads in 2017 who saw an opportunity to reinvent the traditional piggy bank by making it digital while also using physical cash to educate children on the value of money.
While GoSave is headquartered in California, most of its team resides in Australia. Birt lives in Brisbane with his wife and two little children. Prior to GoSave, Birt served as CMO for CliniCloud. He also co-founded LIFX, a smart bulb lighting company, which was acquired last year for $51m by Australia-based Buddy Platform Limited.