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LGBTQ+ banking startup Daylight shuts down

LGBTQ+ banking startup Daylight shuts down

Daylight, a digital banking app built for America's LGBTQ+ community, is shutting down weeks after three former employees filed a lawsuit against the startup.

In a blog, Daylight CEO Rob Curtis says that "after a long period of soul searching, I feel now is the right time to exit this market".

The firm's final day of banking operations will be 30 June and all customer money is safe and accessible for transfer.

Launched in 2020, Daylight closed a $15 million funding round in November and claims to have opened thousands of trans-inclusive debit accounts, supported thousands of prospective LGBTQ+ parents’ plans for their families.

Explaining the decision to close the business, Curtis cites the "high interest rate environment" but makes no mention of the lawsuit, which was revealed in a New York Magazine article in late March.

The article details a host of allegations against Daylight and Curtis and reveals that three former employees have filed a suit alleging age and wage discrimination, whistleblower retaliation, and fraud.

In interviews with a host of current and former employees, NY Mag also reported claims of a "psychologically unsafe" and "hostile" environment. "People called him Donald Trump," one ex-employee told the magazine.

At the time, a spokesperson told NY Mag: “Daylight is fully prepared to address these concerns in court.”

In his blog on the closure, Curtis says: "I did my best but am sorry that I couldn’t do meet the moment and I take full responsibility for the closure of the Daylight brand."

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 24 May, 2023, 11:37Be the first to give this comment the thumbs up 0 likes

With Chime Varo and other horizontal neobanks struggling to scale profitably, I always felt these Niche Neobanks were a ZIRP.