Neobank Joust Raises $2.6M To Bank Freelancer Wages
The funding round was led by PTB Ventures, with help from Accion Venture Lab, Financial Venture Studio and Techstars.
Founded by Lamine Zarrad and George Kurtyka in 2017, Joust aims to help independent professionals find more financial stability and avoid late payments amid the irregular payment system for freelance work. The bank guarantees invoice payments and has a “PayArmour” feature for same-day funding, which is available as an app in Google Play and the Apple App Store.
“We are so excited to partner with PTB Ventures, Accion Venture Lab, Financial Venture Studio and Techstars,” Zarrad said. “At Joust, we understand the growing market of self-employed workers, freelancers and small businesses, and their need for an all-in-one banking solution –especially one that gives them the same benefits enjoyed by major corporations. Our platform not only saves time, but also reduces uncertainty and mitigates the risk of late and non-payment.”
The bank combines an FDIC-insured account and a merchant account and accepts a variety of payments.
“Freelancers require credit and banking products that mirror the user experience of the consumer market but [offer] the product sophistication of the small business market,” said Dave Fields, founder and managing partner of PTB Ventures. “Existing financial market infrastructure just isn’t built to provide this bundle. Through the use of contextual data and proprietary risk algorithms, Joust reduces the cost, complexity and risk of becoming a solopreneur.”
There are 57 million freelancers in the country, and about half of the American workforce will do some type of freelance work by 2027. Joust believes this segment of the population is being underserved.
“Freelancers and entrepreneurs are often forced to manage their finances at the mercy of irregular cash flows and late or inconsistent payments. We’re pleased to be part of Joust’s innovative solution targeting an underserved and increasingly important segment of the U.S. economy,” said Accion CEO Michael Schlein.