PRESS RELEASE - Ready Financial receives a $7 million investment
Ready Financial, provider of the READYdebit® Visa® prepaid card and online bill payment and check-writing service, today announced it has completed a $7.0 million Series B round of financing. The investment, which was led by Rockbridge Growth Equity, a middle-market private equity firm started by Quicken Loans Chairman and Founder, Dan Gilbert, included participation from Flybridge Capital Partners. As part of the funding, Rockbridge Growth Equity will be adding two representatives to the Company’s Board of Directors. Jeff Bussgang of Flybridge Capital Partners will also join the Board.
Ready Financial is focused on bringing better, more affordable financial products to the millions of U.S. consumers who are formerly banked or poorly served by their existing banks. The Company’s initial product, The READYdebit Visa prepaid debit card, provides consumers with a comprehensive, lower-cost alternative to high-fee checking accounts.
The Company’s founders have more than 25 years of combined experience in consumer financial services at Capital One.
“The consumer financial industry is in the midst of a perfect storm,” said Jeff Bussgang, General Partner, Flybridge Capital Partners. “Basic financial products like credit cards and checking are undergoing monumental changes, often at the expense of consumers, who are paying increased fees imposed by their banks. Ready Financial provides a solution for consumers facing this serious problem.”
Dan Gilbert, Partner at Rockbridge Growth Equity and Founder and Chairman of Quicken Loans adds, “Ready Financial provides consumers with a robust, safe and, most important, affordable solution for their banking needs. We are thrilled to have the company join the Quicken Loans family of companies.”
“Formerly banked and poorly served U.S. customers are a large and growing segment of the market, currently estimated at 80 million people. These customers pay a significant amount of money in fees for “free” checking or for cashing checks, buying money orders, and simply paying their bills,” said Will Tumulty, Founder and CEO, Ready Financial. “We welcome Rockbridge and Flybridge Capital as investment partners to help us provide all consumers with affordable financial services and products and achieve a leadership position in this rapidly growing market.”
About Ready Financial
Founded in 2006, Ready Financial Group offers the READYdebit® Visa® prepaid card with online bill payment and check-writing service—an affordable alternative to high-fee checking accounts. In 2009 US banks will collect nearly $40 billion in bounced-check and overdraft fees—hundreds of dollars per household. Our products are specifically designed to prevent overdrafts, with the potential to save American consumers billions in fees annually. The READYdebit card is accepted everywhere Visa debit cards are accepted worldwide and all deposits are insured by the FDIC. Visit www.readydebit.com.
About Rockbridge Growth Equity
Rockbridge Growth Equity is a middle market private equity firm based in the Detroit metropolitan area. Rockbridge has $150 million of dedicated capital and is focused on middle-market transactions in the financial services; sports, media & entertainment; business services; and consumer direct marketing industries. For more information, visit http://www.rbequity.com
About Flybridge Capital Partners
Flybridge Capital Partners is an early-stage venture capital firm whose mission is to assist entrepreneurs in growing innovative, global companies. With $560 million under management, the firm is focused on investing in consumer, energy, healthcare and information technology markets and is led by a team with domain expertise and more than half a century of combined experience in venture capital. For more information, visit www.flybridge.com.