GloriFi, an “anti-woke” fintech startup backed by notable investors including Peter Thiel, is shutting down just weeks after launching its app due to difficulties in securing funding.
In a notice on its website, the Texas-based company stated that it has faced a series of financial challenges stemming from startup missteps, reputation attacks, the declining economy, and multiple negative media narratives. As a result, the company has laid off most of its staff and is winding down operations while assisting customers in resolving their accounts.
Aiming to appeal to Americans who believe Wall Street is overly liberal, GloriFi launched its app in September, collaborating with TransPecos Banks to provide checking and savings accounts while also allowing users to apply for credit cards. Founded by businessman and political donor Toby Neugebauer, the firm had raised approximately $50 million from backers like Thiel and Ken Griffin.
However, a report from the Wall Street Journal in October indicated that GloriFi quickly depleted its funding, bringing it to the brink of bankruptcy. The company had initially agreed to a $1.7 billion merger with a SPAC but needed to raise at least $60 million in cash to fulfill that agreement.
The startup struggled with missed launch dates, which it blamed on vendors, and laid off dozens of employees in the process. A plan to produce credit cards from shell casing materials collapsed due to compatibility issues with security chips and payment terminals.
Additionally, employees reported that Neugebauer exhibited a “volatile temper” and had been drinking on the job, given that his home also served as the office for the startup. After the WSJ article, Neugebauer, who invested $10 million of his own funds into GloriFi, resigned as CEO to take on the role of executive chairman. In an email addressing the closure, he expressed to employees, “This is a devastating day.”