US-based automated savings technology startup Digit raised $11.3m on Tuesday in a series A round featuring Google Ventures, the corporate venturing arm of diversified internet company Google.
Venture capital firm General Catalyst Partners led the round, which also featured VC firm Baseline Ventures and angel investors including Hans Morris, former President of payment services firm Visa.
Digit has developed a tool that automates savings by using algorithms to work out individual monthly spending patterns. Once a pattern is identified, Digit then withdraws small amounts from a customer’s main account into a Digit account during periods when their spending is low.
The money can be withdrawn out of the Digit account anytime but the interest gained during the intermediate time is kept by Digit.
The funding round brings the total raised by Digit to $13.8m, and follows a $2.5m seed round raised from Google Ventures, Baseline Ventures, Freestyle Capital, Upside Partnership, Operative Capital and a host of angel investors in December 2014.