Y-Combinator fintech grad seeks a $50 million valuation

Better Financial Corp., a graduate of the Y-Combinator winter class of 2022, is looking to raise $5 million in funding at a $50 million valuation for its seed round, sources with knowledge of the matter tell Axios.

Why it matters: Consumer fintech is a difficult space, with high customer acquisition costs. But Better is betting it can do better, so to speak, by operating multiple brands aimed at different populations.

How it works: "We're building Thrasio for fintech, a family of consumer brands built on a shared stack," CEO and founder Kaushik Tiwari said during the company's YC Demo Day presentation.

• Given the explosion of embedded finance companies, Better Financial Corp. is able to spin up new brands in about four weeks, the company said as part of the presentation.
• The company's first brand—focused on uninsured Americans— has completed over $1 million cumulative spend since its launch in mid-2021, it said.
• By housing multiple brands, the company believes it can cross-sell more effectively and lower customer acquisition costs.

Details: Backed by Slow Ventures, Soma Capital, and Global Founders Capital, Better Financial Corp. has raised about $1.6 million from prior rounds.

• It has also gathered about $1.5 million of the $5 million it is currently seeking, the sources say.
• But the talks are continuing and terms of the deal may still change.

Context: Two investors said the more typical valuation for a YC graduate right now is $20 million to $30 million.

• If Better Financial Corp. closes the round at a $50 million valuation, it's yet another signal seed-stage remains red hot.