Tally
By Caretaker
Fintech that automated credit card payoff; shut down in 2024 after failing to raise new funding.
Cause of Death
Ran out of cash
Contributor explanation
Tally was a San Francisco fintech that automated credit card payoff, offering consumers a lower-interest line of credit to consolidate and pay down card balances. Backed by Andreessen Horowitz, it raised $172M and reached an $855M valuation after its October 2022 Series D. In 2024 it pivoted away from consumer lending toward a B2B model, but it couldn't raise the capital it needed and shut down on August 12, 2024. Founder Jason Brown announced the closure on LinkedIn. Details: Founded 2015 in San Francisco, CA. Founder: Jason Brown. Funding: $172M (investors included a16z). Shut down: August 12, 2024. Sources: https://techcrunch.com/2024/08/12/a16z-backed-fintech-tally-which-raised-172m-in-funding-is-shutting-down-after-running-out-of-cash/ https://news.crunchbase.com/fintech-ecommerce/startup-tally-closes-sway-a16z/ https://www.bankingdive.com/news/fintech-tally-closes-over-failure-to-raise-capital/724263/ https://www.axios.com/pro/fintech-deals/2024/08/13/credit-card-tally-shuts-down
Final Lesson
A late pivot can't save a company that can't raise its next round. Lending businesses live on cheap capital, so when funding dries up, the runway goes with it.