Acumen has invested in Level, a business that offers affordable and accessible financial services to help independent contractors expand their work and build wealth.
THE CHALLENGE: INACCESSIBLE FINANCIAL SERVICES FOR SMALL BUSINESSES
The U.S. workforce is rapidly changing with approximately 57 million people working independently. However, financial infrastructure has not adapted to their volatile earnings. There are 32 million small businesses in the United States, but only the top one-third have access to financial services designed for their needs. The remaining 20 million small or microbusinesses—entrepreneurial truck and van drivers, sub-contractors, lawn care professionals and many others—can only access consumer finance, severely constraining their growth and opportunities. Existing lending solutions for gig workers are either targeted at a larger volume using traditional underwriting methods or come from predatory providers charging high-interest rates. This forces workers to rely on expensive, exploitative credit options.
THE INNOVATION: TAILORED FINANCIAL SERVICES
Level offers an innovative suite of financial tools designed to build wealth for low-income, gig workers. By offering affordable cash advances and other services, Level enables workers to better manage their expenses, invest in their businesses, scale their work, and grow their incomes.
“Level is building the financial OS to enable microbusinesses to thrive, with a suite of interlocking financial products purpose-built for entrepreneurs. We partner with marketplaces to deliver these embedded financial services. By providing tailored financial solutions to help their workers expand their small businesses, we “grow the pie”. This drives substantial financial benefits to our partners and our customers,” said Level CEO David Edelstein.
WHY ACUMEN INVESTED: INCREASED FINANCIAL ACCESS TO GROW SMALL BUSINESSES
About the business, Acumen America Director Amon Anderson says, “There are millions of microbusinesses and independent workers in the U.S. who are underserved by existing financial institutions. Level provides an innovative suite of financial tools to help these workers grow their businesses and close the wealth gap.”
Acumen’s investment in Level will be used to help accelerate business development as they grow and expand to larger adjacent businesses. It will also help launch new financial products, onboard new partners, and complete necessary integrations to streamline customer experience.
Find out how Acumen America is reimagining a future for workers.