Mobile DeFi app Donut has raised another $2 million from a group led by Redalpine. Owners of the Washington Nationals, Inventures, Entrepreneur First and Compound founder Robert Leshner also participated, with the funds allotted for user growth and product development. Donut’s total funding now sits at $3.8 million and another round could be announced early next year.
In September 2020 Donut released a high-yield interest generating product it said is behind 40 per cent monthly growth. It is betting big on DeFi.
“Today, many people earn less than 0.1 per cent in interest in their bank account. This simply is not acceptable,” said founder Neel Popat. “DeFi lending offers a new way to work your money harder, but significant time investment is required to understand which services to trust. We’re making DeFi accessible to a broader audience, giving them the opportunity to earn four to 10 per cent APY via three simplified options.”
“DeFi needs an app like Donut where anyone, regardless of their crypto knowledge, can start investing in digital assets,” Leshner said. “Donut has become the essential next step in this industry and as a partner and investor, I’m thrilled that they are bringing DeFi to the masses.”
“Sitting at the intersection of fintech and DeFi, Donut has done something unprecedented in making a DeFi product that speaks the language of everyday consumers,” said Simon Leicht, partner, at Inventures. “We firmly believe businesses like Donut will fuel the next stage of growth in the sector by making DeFi accessible in daily financial life. We’re excited to be along for the ride.”
“DeFi is brimming with new solutions,” Redalpine general partner Harald Nieder said. “However, it is still very disconnected from the traditional world of finance. Financial solutions in the future will be an eclectic mix of both traditional and DeFi. It will require trust, curation and ease of access to DeFi for a new financial paradigm.”