Investment Round Follows Shortly after $26M Round Led by a16z Crypto
Activant Capital and L Catterton are co-leading a new $60 million fundraising round in Eco, just months after the company’s $26 million fundraise announced in March. They’re joined by many of Eco’s existing investors, including a16z Crypto, as well as a number of new faces: Lightspeed Venture Partners, LionTree Partners, Valor Equity Partners, and dozens of others.
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Eco has amassed a waitlist of 180,000+ people who want to take advantage of its all-in-one digital wallet with the best rates (2.5-5% APY), rewards (5% cash back) and no fees—and its broader promise of a fully aligned financial partner for life. Eco is making a “Smart Money” promise to consumers to deliver an exponentially better financial services experience by building its tools on better infrastructure, operating with a business model fully aligned with their interests and delivering a top-tier product.
Eco’s Smart Money strategy is translating into not only broad consumer interest but also deep early engagement. Average deposits at Eco are over 19 times higher ($7,700) than neo-banks (around $400). Most notably of all, over 88% of newly onboarded customers express interest in depositing part of their paycheck with Eco and over 60% want to deposit the bulk of it, which is almost unheard of.
In light of the traction Eco is getting with its Smart Money strategy, and the sad market reality for nearly all banking consumers, Activant Capital, a leading growth-stage fintech venture fund, and L Catterton, the top consumer-facing investor in the world, decided to lead this new $60 million round.
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“Activant partners with companies building and enabling the infrastructure of tomorrow,” says Founder and Partner, Steve Sarracino. “Through its elegant all-in-one digital wallet, with no fees and high APY and rewards, we believe Eco has landed on a value proposition to drive momentum toward a ‘Smart Money’ revolution that sees people consolidate their accounts with a single, trusted partner who delivers superior terms and user-first technology. Eco is uniquely positioned to reshape consumer finance from the ground up and we’re thrilled to support Andy and the team in this next phase of the journey.”
Regarding L Catterton’s investment, Michael Farello, Managing Partner, says “L Catterton focuses on categories and businesses with strong tailwinds underpinned by consumer trends and where consumers, and their dollars, are headed next. We took note of the groundswell of interest in Eco that emerged following its beta launch in March. Our research indicates Eco is addressing a domestic market opportunity of 50M+ digitally savvy consumers who pride themselves on good stewardship of their finances but, yet, don’t realize the real costs — in fees and lost purchasing power — of their current banking relationship. When those costs become clear, we believe they will migrate in large numbers to Eco, won over by the exponentially better rates, no fees and user-centric tech offered by its ‘Smart Money’ model.”
Eco will use the additional investment to accelerate its aggressive product roadmap to consolidate all financial tools into a single easy-to-use wallet. With this new funding and strong demand coupled with market fit, Eco will seize this opportunity on behalf of its community — present and future — to be their bridge to a Smart Money future today.
