Freedom-loving, ‘pro-America’ fintech startup GloriFi is shutting down

Like the rest of the technology sector, fintech has had a rough year. The lagging economy, inflationary pressures, and job cuts have hit financial technology startups hard. The latest victim of the economic hammer that 2022 has been is GloriFi, a unique fintech startup that desired to provide financial services to “pro-freedom” Americans. Here’s what you need to know:

• What’s happened? Fintech startup GloriFi has announced it is shutting its doors. The move comes after it failed to secure additional funding. GloriFi opened its virtual doors this September with the aim of providing digital banking services via its app. While the company raised $50 million earlier this year, when it failed to secure additional funding, it was left with no path to continued operability. Thus, it’s shutting down and laying off its staff.
• How was GloriFi different than other fintech apps? As The Wall Street Journal, which first reported on GloriFi’s shuttering, puts it, the business was “anti-woke.” While GloriFi itself never publicly described itself as anti-woke, the company had no qualms about marketing itself as a service provider for right-wing America. In a July press release, the company described itself as  “a pro-freedom, pro-America, pro-capitalism technology company . . . empowering members to put their money where their values are and preserve the Country they believe in.”
• But . . . aren’t all U.S. banks pro-American and pro-capitalism? That’s safe to say. But GloriFi had a disdain for traditional Wall Street banks, which, believe it or not, the company saw as too liberal. Of course, America’s capitalist system ultimately failed GloriFi, because the company was unable to raise the additional capital it needed to continue operating.
• Was GloriFi a fly-by-night operation? Hardly. While GloriFi seemed to stumble early out of the gates (as an earlier Journal story notes, it missed launch targets, burned through its cash, and had early layoffs), the startup had some big-name, right-leaning investors including Peter Thiel, Mike Pence’s former chief of staff Nick Ayers, and Kelly Loeffler, the former Republican senator of Georgia.
• What has GloriFi said about its shuttering? A post on its website cited “a series of financial challenges related to startup mistakes, reputation attacks, the declining economy, and multiple negative media stories” as challenges the company has recently faced. “As a result of developments late last week,” the post continues, “the Board of Directors and leadership of GloriFi have come to the heartbreaking conclusion that we need to begin winding down the company’s operations.  We couldn’t be more thankful for our employees’ tireless efforts to bring this amazing product to market and our members and clients’ early trust, nor could we be more disappointed in the ultimate outcome.”
• I’m a GloriFi user. What happens to my money? GloriFi’s post says the company has “begun the process of helping our customers resolve their accounts” without giving further detail about this process. However, GloriFi says customers should look for more info, including the specific steps they need to take, in the next 24 hours.