Less than two years after raising $80 million in Series D, automated debt manager Pointing has closed after being unable to raise more funds in a difficult environment for fintech startups.
Founder and CEO Jason Brown said in a Post on LinkedIn“We have made the difficult and sad decision to close Tally. This is not the outcome we were hoping for, but after exploring all options, we have been unable to secure the financing necessary to continue our operations.”
The San Francisco-based startup helped people manage and pay off their credit card debt.
In October 2022, Tally raised an $80 million Series D round led by Sway Ventures at a post-funding valuation of $855 million. Other investors in the round included Andrée Horowitz, The Adventures of Cowboys 1, Kleiner Perkins And Shasta Ventures.
Founded in 2015, the company has raised $172 million, according to Crunchbase Data.
Slow decline of financial services
Tally’s inability to secure new financing is not unusual given current market conditions.
Venture Capital Financing of Private Companies in the Financial Services Sector — a Leading Sector for Venture Capital Investment — has slowed considerably in recent quartersIn Q2 2024, financial services firms raised $9.7 billion – according to Crunchbase data — up slightly year-over-year and quarter-over-quarter, but down 75% from the market peak in Q2 2021. That quarter saw more than $40 billion invested.
Over the past five quarters, funding provided to financial services companies has been less than $10 billion per quarter, according to Crunchbase data. Those five quarters marked the lowest amounts of funding provided to the sector since the first quarter of 2017.
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Illustration: Dom Guzman
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