Company Profile
Introduction
Dave (ticker: DAVE) is a digital banking services company whose main focus is cash advances.
Origin of the company name
The company’s name, Dave, is an abbreviation of the hero in the biblical story of David and Goliath, and is used to highlight the company’s purpose of eliminating many of the features of traditional banks that customers cannot tolerate.
Founded
“Shark Tank” star Mark Cuban, who led the company’s $3 million seed round, said he was crushed by overdraft fees in his twenties.
Dave’s CEO Jason Wilk is the former founder of AllScreen, which was also initially funded by Cuban when Mark Cuban invested US$300,000.
The fintech company merged with VPC Impact Acquisition Holdings III, the blank check company of Chicago-based global investment firm Victory Park Capital.
Initial Public Offering
On January 6, 2022, the company was listed on the Nasdaq in the U.S. stock market.
Business Scope
Quick View on Company Service
The financial services company, which offers a banking app, is dedicated to providing customers with services such as banking services, overdraft protection, building credit and finding part-time jobs.
Short-term loans
Dave’s main service is short-term loans. Instead of charging interest, origination fees or similar charges, the company charges an expedited service and a monthly fee; use of the service and offers the option to “tip” the company.
The National Consumer Law Center (NCLC) is concerned about this operating model, saying some users may feel compelled to tip, which is not much different from paying interest.
Digital Banking Services
Dave launched banking services in 2019, through a partnership with Evolve Bank & Trust.
Find a part-time job
It has a side job search service called SideHustle, and the company’s “Sharing Economy Jobs Committee” is also committed to helping improve the financial situation of gig workers.
Note: Dave’s special feature is not original. In Japan, Mercari is the largest online shopping market in Japan, and many people are already members of it. There is a “job” icon at the bottom of the Mercari homepage. Click it to link Go to Hallo’s website. Workers do not need to write a resume or go through an interview before starting work. They just need to arrive at the workplace at the agreed time. The threshold is very low.
Operating Model
The company started with overdraft fees. For a $1 monthly membership fee, users get free access to their checking account and up to $100 in overdraft protection with no fees or interest. Members who sign up for direct deposit also get automatic budgeting and the ability to build their credit scores by reporting rent and utility payments to credit bureaus.
The company said it has helped millions of customers avoid overdraft fees through its ExtraCash feature and has helped gig workers earn hundreds of millions of dollars from side hustles through its sharing economy job site Side Hustle.
Capital market performance
Trump’s won is a catalyst
The election of the business-friendly Trump sent the company’s stock price soaring in November 2024. Many bank stocks surged in November as Trump vowed to deregulate the financial industry, but Dave’s stock price more than doubled in the last two months of 2024.
Market Cap
As of December 30, 2024, Dave’s market value is $1.21 billion, which is considered a small stock in the U.S. stock market.
Stock price performance
As of December 30, 2024, Dave:
- Since the beginning of 2024, it has risen by 995.82%.
- Since the company went public, it has fallen by 70.06%.
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