Lack of funding forces US credit card fintech Ness to close down

Ness Closure Announcement:
- US fintech Ness, specializing in credit cards for wellcare, is shutting down.
- CEO Derek Flanzraich cites running out of cash as the reason for the closure.
- Despite raising $15.5 million in a seed funding round in May 2022, the company failed to secure additional funds in time.
Funding Efforts and Challenges:
- Anticipating another fund raise, Ness aimed for an additional $40 million but couldn’t secure it.
- The CEO highlights efforts to re-envision the business, cut costs, and pitch to numerous investors over the past year.
Market Changes and Business Challenges:
- Flanzraich acknowledges changes in the market and the failure of the expected $40 million funding.
- Despite efforts to adapt and cut costs, the company faced challenges in redefining its business model.
Company Background:
- Founded in May 2021, Ness focused on credit cards linked to rewards, medical benefits, and health insurance.
- Aimed at encouraging “healthy spending” through partnerships with brand partners.
Remaining Assets and Future Plans:
- Flanzraich plans to sell the remaining assets of the company.
- Expresses intention to join an existing firm rather than founding a new one.
LinkedIn Post and Reflection:
- Flanzraich reflects on the difficulties faced by the company and expresses how things might have been done differently in hindsight.
- Indicates a willingness to sell remaining assets to aspiring entrepreneurs.