Saving money has never been easier or more appealing for people in the U.S. Long Game is a personal finance app that encourages users to save money while winning prizes.
The company announced today that it has raised $4 million in seed funding from Collaborative Fund and Thrive Capital, among others. This financing is in addition to the $2.6 million raised in 2016.
Forty percent of Americans have no savings, 70 percent have less than $1,000 in savings and 63 percent can’t cover an unexpected $500 expense. Yet, Americans spend almost $70 billion on lottery tickets every year, with the average household spending $540 annually on lottery tickets. Long Game has tapped into behavioral economics and the mass popularity of lottery games to redirect lottery spending towards personal savings. Unlike the actual lottery, money is never lost and is FDIC-insured, earning up to 10 times the interest rate of many major banks.
“The majority of Americans are not in control of their financial situation and are not saving for the future,” said Lindsay Holden, founder and chief executive officer, Long Game. “As a result, people are stressed and live with financial anxiety and vulnerability. We built Long Game to empower people to feel proud and hopeful about their personal finances and to make smart money decisions fun and rewarding.”
Long Game users create savings accounts and are rewarded with virtual coins, which can be used to play lottery-style games on the mobile app -- the more saved, the more coins earned and the more chances to play. To date, Long Game has nearly 70,000 users who are already adding an average of $60 to their savings account each month.
"In the short time since its launch, Long Game has proven that its innovative prize-linked approach really helps people save money,” said Lauren Loktev, Partner, Collaborative Fund. “We see an enormous market opportunity in empowering consumers to take control of their finances in a way that feels fun and satisfying. Long Game has knocked that out of the park by enabling people to play fun, lottery-style games while simultaneously learning to save.”
The funding will enable the company to continue product development, drive user acquisition, boost marketing initiatives and bolster the team with new hires. Long Game is currently available nationwide with a U.S. bank account.