Canadian financial technology startup INSTANT Financial has raised $1.2 million in seed-stage financing. The round was led by Canadian venture capital firm Real Ventures with participation from a number of angel investors. Based in Vancouver and Montréal, INSTANT has developed a mobile app that helps workers gain immediate access to their earned pay. Its solution also helps employers reduce pay distribution costs, the company said. INSTANT was founded last year by CEO Steve Barha, CTO Kevin Falk and CRO Ryan Volberg. Real Ventures raised $89 million for its third early-stage fund last August.
PRESS RELEASE
INSTANT Financial Raises $1.2 Million in Seed Funding to Change the Way Employees Get Paid
New Mobile App Provides Employees Instant Access To Their Earned Pay
VANCOUVER & MONTREAL, Feb 3, 2016 /PRNewswire/ - INSTANT Financial, a financial technology startup company, has launched their mobile App to give workers immediate access to their earned pay. The company has also announced it has closed an oversubscribed $1.2 million Seed funding round led by Real Ventures with participation from key strategic technology Angel investors.
“Everyday tens of millions of hourly workers wake up to the same challenge: they need access to their pay but payday is a several days away,” explains INSTANT Financial CEO Steve Barha. “The founding team at INSTANT recognized this and we have solved this problem by giving workers immediate access to their pay.” Barha concluded.
According to a 2013 U.S. Bureau of Labor Statistics, over 75 million employees are paid hourly in the United States with these same employees typically waiting up to two weeks to access their pay. Consequently, over $80 billion in interest and fees is paid to traditional banks and payday lenders by frustrated workers who previously had no alternative.
With INSTANT’s mobile app employees are able to unlock their unpaid wages on a daily basis. It’s simple, easy and transparent without additional user or service fees while putting the control of money into the hands of those who earned it. Employers reduce pay distribution costs while significantly increasing employee retention with INSTANT.
INSTANT delivers an extensive range of benefits to both employers and employees.
Benefits to Employers:
Increased employee retention & engagement
Recruitment advantage
Reduced pay distribution costs
Tangible operational efficiencies
Benefits to Employees:
Immediate access to pay with no fees
Increased financial literacy
Reduced financial stress
Improved employer relationship
“We see INSTANT Financial as a disruptive technology that puts financial control into the hands of service industry employees while providing great value to the employer.” said Real Ventures General Partner JS Cournoyer. “This very large market opportunity that has been underserved by the traditional providers.”
About INSTANT Financial
INSTANT Financial is changing the way the world gets paid. INSTANT’s solution provides employees with immediate access to their earnings and control over their finances while providing employers with direct savings and increased employee retention. Founded in 2015, the Company is headquartered in Vancouver and Montreal, Canada. For more information, visit www.beINSTANT.com
About Real Ventures
Real Ventures is Canada’s largest and most active seed venture fund. They invest in ambitions entrepreneurs that are creating the Internet experiences of the future, or embracing the power of the internet to disrupt existing industries or business models. They invest in early stage companies and have the team and networks to support entrepreneurs and propel their companies forward.
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