Daylight, a digital banking app designed for America’s LGBTQ+ community, is set to shut down shortly after three former employees initiated a lawsuit against the startup.
In a blog post, Daylight’s CEO Rob Curtis expressed that “after a long period of soul searching, I feel now is the right time to exit this market.” The company’s last day of banking operations will be June 30, and all customer funds will remain secure and easily transferable.
Launched in 2020, Daylight raised $15 million in funding in November and reported the establishment of numerous trans-inclusive debit accounts, aiding many prospective LGBTQ+ parents in planning for their families.
Curtis attributed the decision to close the business to the “high interest rate environment,” but did not address the lawsuit, which was highlighted in a New York Magazine article in late March. This article detailed various allegations against Daylight and Curtis, including age and wage discrimination, whistleblower retaliation, and fraud.
Interviews with current and former employees reported a “psychologically unsafe” and “hostile” work environment. One former employee even likened Curtis to Donald Trump.
A spokesperson for Daylight previously stated, “Daylight is fully prepared to address these concerns in court.” In his blog regarding the closure, Curtis reflected, “I did my best but am sorry that I couldn’t meet the moment, and I take full responsibility for the closure of the Daylight brand.”