Layup, a challenger bank offering prize-linked savings accounts for sports fans, today announced a seed fundraising round of $2.3 million. The company will use the funds to expand product capabilities, recruit top talent, and market its unique game-based savings application to sports fans and other end users.
NEW YORK, Sept. 21, 2023 /PRNewswire-PRWeb/ -- Layup, a challenger bank offering prize-linked savings accounts for sports fans, today announced a seed fundraising round of $2.3 million. The company will use the funds to expand product capabilities, recruit top talent, and market its unique game-based savings application to sports fans and other end users.
The seed round was led by Continental Investment Partners, LLC, with participation from Chicago Ventures and the Entrepreneurs Roundtable Accelerator.
A prize-linked saving account or PLSA (also called a lottery-linked deposit account) is a savings account where some of the interest payment on bank deposits or marketing dollars are distributed as prizes based on chance.
In 2014, the U.S. Congress passed the bipartisan American Savings Promotion Act to provide federal support for PLSAs, to encourage savings and reduce lottery spending. PLSAs have historically provided two benefits. First, the variable rate of return is statistically proven to help low- to middle-income earners save more money. Second, in countries with PLSAs, the accounts have been shown to reduce PLSA holders' lottery spending, increasing their saving.
Layup has created the next evolution of PLSAs by offering competitive, chance-based sports games. Fans are rewarded for saving through increased opportunities to participate in equal odds sports-based games. Layup's product provides the excitement and feel of sports betting without the downside, promoting savings instead of losses. Layup users never risk their hard-earned cash. The end result: Layup users get a stake in the game while saving for their future.
"It's time for sports to put money back into fans' pockets, and our no-lose games do just that," said Owen Monagan, Layup co-founder and CEO. "Layup's focus on fun and excitement is our hook to get sports fans off sportsbooks and into saving. Responsibility is our mission, but competing for attention is how we get there."
"We are excited to offer fans a positive way to engage with the sports they love. Owen and I grew up in Ireland, where we were exposed to a culture that understands the benefits of PLSA and the negatives of sports betting," said Oisin Tiernan, co-founder and CTO. "At its core, PLSA is emotion-motivated saving. If the emotion of sports can make grown men paint themselves blue, surely it can get them to put five dollars in a savings account."
"Continental has established a fine track record backing founders using innovation to accelerate financial empowerment and literacy for consumers," said Paul Purcell, Partner, Continental Investment Partners, LLC. "We could not be more excited to partner with Owen and Oisin as they use their talent and market understanding to promote the dual social benefit of reduced gambling losses as well as increased consumer savings and financial sustainability. We are also excited to partner once again with our cross-town friends at Chicago Ventures."
A beta version of Layup is currently available on the Apple App Store and the Google Play Store. Join the waitlist to get early access. Savings functionality will be added soon.
For more information on Layup, visit www.trylayup.com
Media Contact
Michael VanDam, Layup, 1 312-375-0872, [email protected], www.trylayup.com
SOURCE Layup
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