Here’s the 21-page pitch deck Lance, a digital bank for freelancers, used to raise a $2.8 million seed round from investors including Barclays
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- Lance offers a digital business bank account for freelancers.
- Managing finances and filing taxes are complicated for self-employed workers.
- Here’s the 21-slide pitch deck Lance used to raise a $2.8 million seed round this month.
For freelancers, keeping track of finances is often a second job in and of itself.
Revenue streams can be volatile and vary from project to project. Filing taxes, a complicated task for any worker, is made all the more difficult when managing income documentation and withholdings.
The market for freelance work is large and growing. One survey released by Upwork in September said more than one-third of Americans were freelancers, a total of 59 million people — an increase of 2 million from a similar study conducted in 2019.
Founded by former freelancers, Lance is a new digital bank hoping to simplify the life of those workers by offering what it calls an “active” approach to business banking.
“We found that every time we sat down with the existing tools and resources of our accountants and QuickBooks and spreadsheets, we just ended up getting tangled up in the whole experience of it,” Lance cofounder and CEO Oona Rokyta told Insider.
Lance offers subaccounts for personal salaries, withholdings, and savings to which freelancers can automatically allocate funds according to custom preset levels. It also offers an expense balance that’s connected to automated tax withholdings.
On Tuesday, Lance announced the closing of a $2.8 million seed round that saw participation from Barclays, BDMI, Great Oaks Capital, Imagination Capital, Techstars, DFJ Frontier, and others.
“We just wanted to really lean into the more proactive approach of helping people allocate funds into the best possible places, and then making those subaccounts responsive to each other,” Rokyta said.
For an additional fee, Lance also has a tool that workers can use to file quarterly withholdings to the IRS and automatically populate the Schedule C section of a personal income-tax filing, where filers report self-employed income.
This information can also be critical for freelancers filing loan applications, an issue that became all the more visible with the advent of the Paycheck Protection Program at the onset of the pandemic.
Obtaining credit — from a business loan to a mortgage to PPP funds — requires extensive sets of documents that large businesses might typically keep on hand but aren’t as easy to gather for freelancers.
Rokyta said the new funding would primarily be directed toward marketing and reaching new customers — Lance has added “thousands” of accounts since launching just two months ago — and that the startup’s backers “really understand where things are headed in terms of the future of work.”
“What I think we all know at this point is that we’re all getting a lot more comfortable relying on ourselves to make money,” Rokyta said. “You shouldn’t have to get a CFP license or certificate in order to manage a business.”
Find more pitch decks in our searchable pitch-deck library here.