PerkStreet Secures $9 Million Series B Financing

Thursday, May 12, 2011

Editor’s Note: The following is a special message from PerkStreet CEO, Dan O’Malley.

If you’re a customer of ours, you know PerkStreet was built for people who love to save money — who really get excited about it. What you might not know is how many other people there are like you.

We have some exciting news to announce: just over a year after launch, PerkStreet is now serving more customers than half the banks and credit unions in the country. It’s a watershed moment for the industry and proves that banking is ripe for upheaval.

But that’s not even the best news. This is: We’re also happy to announce that PerkStreet is now putting over a million dollars a year back into our customers’ pockets. We’re thrilled about it. Our customers are thrilled about it. And we’ve seen tremendous growth as a result of it.
It’s a community, not a bank.
PerkStreet is a community of people using technology to save money and improve their own lives. People from all over the country. They get together online to share their secrets to saving on our blog, Facebook page, and Twitter stream. Our community has spread the word about PerkStreet so rapidly that the number of customers we serve has quadrupled over the last six months.

Here at the PerkStreet headquarters, we’re saving an incredible amount of money, too. By cutting out unnecessary expenses like the expensive branches our competitors are still paying for, we save about 70% of what a typical bank pays to keep things running. Our modern approach to banking is how we empower customers to earn so much with us.

We’re leading our industry into the future.
The future of banking lies in helping people on their individual quests to save more money. As the institutions holding people’s money, banks can fill this role naturally. And as the stewards of the country’s financial health, they have an obligation to.

At PerkStreet, we’re obsessed with helping our customers get more for their money. No debit card in the world has more unlimited cash back than ours; no community is more enthusiastic about sharing ways to save.

This week, the financial markets recognized PerkStreet’s leadership in the banking industry. We’re happy to announce that we’ve closed the second round of investment into the company, led by Globespan Capital Partners. Like our existing investors — including Highland Capital Partners, another major private equity firm — Globespan sees in us a huge opportunity to remake the financial services industry. The combined investment of these firms will help us continue to build a powerful, independent company with the strength to take on the big banks — and win.

PerkStreet is about to get even better.
We’re incredibly excited about our latest round of investment. With it, we’ll create more and more ways people who love saving money can do more of it, including:

•Increasing the amount of cash back they can earn;
•Connecting with an expanded community to share secrets for saving;
•Accessing an expanded set of financial services from PerkStreet (To the thousands of customers who have asked for savings accounts — we hear you!);
•Using a groundbreaking set of online tools to identify additional ways to save and reach financial goals faster.
PerkStreet is for people who love saving money. The people who are best at it — think of your friend who who always has the coupon for the great restaurant, or your cousin who never pays full price for anything — are already joining. But the truth is, everyone is looking for ways to save money. And that’s why PerkStreet is the future of banking.