From Licensing to Funding: How Sparring Powered Daylight’s Journey
U.S.
Daylight was the first digital banking platform in the U.S. designed for the LGBT+ community. It provided tailored tools to simplify budgeting, enhance savings, and connect members with a supportive financial network, empowering them to build the life they deserved.
The Challenge
While creating a challenger bank, a faced a number of regulatory hurdles including gaining appropriate licenses, securing funding, scaling the team, contracting freelancers or one-off team members, and day-to-day legal support. In particular, when innovating in a slow-moving industry such as finance in the US, these processes can be burdensome for a founding team.
How we solved the problem
We supported Daylight by securing business licenses across the U.S., managing their legal compliance. As in-house counsel, we oversaw their $15 million Series A funding round and earlier seed investments, collaborating with external counsel to ensure success. Additionally, we handled their day-to-day legal operations, from team contracts to litigation matters.
Securing Multi-State Licenses
Operating across the US, Daylight was required to secure business licenses in applicable states.
Supporting Funding Rounds
Sparring oversaw Daylight’s $15 million Series A and Seed funding rounds as in-house counsel, collaborating with external advisors.
Handling Daily Legal Operations
We provided continuous in-house counsel support, handling team contracts and litigation matters.
Summary
The first U.S. digital banking platform designed by and for the LGBTIQ+ community, Daylight, is a success story we’re proud to be part of! Sparring supported Daylight every step of the way, helping them flip operations from CEE to the U.S., secure $20 million in funding from investors like VISA and Citi, set up an ESOP scheme, protect their IP, ensure fintech regulatory compliance, and provide comprehensive day-to-day legal support.
Sparring guided Daylight from its initial setup, through three investment rounds, to its successful acquisition. We’re honored to have been a part of this journey, empowering Daylight to create a platform that strengthens the financial future of the LGBTIQ+ community.
