Digit, a San Francisco, CA-based service that automates people’s savings, raised $2.5m in seed funding.
Backers included Freestyle Capital, Upside Partnership, Google Ventures, Operative Capital, Garry Tan, Alexis Ohanian, Aaron Harris, Rick Berry, Nate Bosshard, Eric Ries, Joshua Greenough, Randy Reddig, Eoghan McCabe and Ted Rheingold.
In addition to the funding, Dan Manges (Founding CTO, Braintree), Randy Reddig (Founding Team, Square), Sharda Caro-del-Castillo (GC Payments, AirBnb) and Tom Brown (Partner, Paul Hastings) are joining as advisors.
The company intends to use the expand operations.
Led by Ethan Bloch, CEO, Digit automatically assesses users’ accounts and, based on spending patterns, sets small amounts of money aside in a FDIC insured account.
It then sends updates about how much money they’ve saved. Users can withdraw savings anytime.