Daylight is shutting down

Daylight, the digital bank designed for the LGBTQ+ community, is shutting down on June 30, 2023.

“Daylight had a great run paving the way for US LGBTQ+ customers — we opened thousands of trans-inclusive debit accounts, supported thousands of prospective LGBTQ+ parents’ plans for their families,” Daylight co-founder and CEO Rob Curtis wrote. “Ultimately, though, we couldn’t provide these services in a way that covered our costs — this is likely a job for big banks and I hope they pick up the torch and carry forward our legacy.”

Founded in 2020, the California-based startup offers traditional banking features with a few unique add-ons such as the ability to have a debit card with a different name than the one that appears in the user’s ID. In November of last year, Daylight announced a $15 million funding round led by Anthemis, with participation from CMFG Ventures, and others.

In March, NY Magazine published an article about the startup, which was sued by former employees. “Defendants Rob Curtis and Billie Simmons are unethical individuals who used deception, inflated earnings, and inflated business records to weasel unassuming investors out of their money and to fool the public into banking with Daylight Bank,” an attorney for the plaintiffs wrote.