Bump raises $3M seed to help creators manage finances

James Jones’ father was an engineer. He was also a musician and preacher, performing in churches across the East Coast.

Jones, an entertainment lawyer, noticed that his father often worried about keeping track of the money he raised when he performed at church, and that artists and influencers often complained about the same things.

“I’ve also often heard creators complain about the lack of ownership over their creative assets and the difficulty in obtaining loans, mortgages, or generally creating generational wealth opportunities for themselves and their families. families,” Jones told TechCrunch.

Jones said the pandemic presented a new set of challenges for creators: Many of them were at home trying to figure out how they would make money and what to do next.

His solution was Bump, a platform that helps creators manage and grow their businesses. He launched it in 2020 with Anton Kovalyov, who now serves as CTO. On Tuesday, Bump announced a $3 million seed round, with investments from ImpactX, Capitalize and Serac Ventures.

Bump allows creators to track their earnings and market value, which can help them negotiate better deals and see how much money their partners owe them. In 2022, Bump launched the Bump Creator Credit Card in partnership with Mastercard, which has no monthly or hidden fees and can be acquired without a credit check. Bump also works with a banking institution and has direct deposit accounts that allow creators to earn interest on cash placed in its money market account.

Jones said fundraising for his business has been brutal. Bump faced many factors he simply couldn’t control, like a bear market and lack of investor appetite for creative economy companies. “We suffered setbacks from investors and lived to fight on,” he said. “We weren’t afraid to ask for investment, and we weren’t afraid of being ghosted, judged, or told no.”

Bump closed its funding round in about six months, with other investors including Heirloom Ventures, H/L Ventures and Mana Ventures. To date, it has raised $3.5 million from existing investors, including Snap Inc. and Sixty8 Capital.

“The creator economy is one of the most important trends for the future of work,” Oliver Libby, managing partner at H/L Ventures, told TechCrunch. “There is virtually no financial infrastructure, financial education, products or support for this growing population – many of whom are underrepresented and underbanked. »

Bump will use the latest fundraising to help expand and refine its infrastructure.

Building a company like Bump has always been Jones’ passion, even if he didn’t always want to be the founder. “I have always had a burning desire to solve the world’s problems,” he said. He loved talking to people, listening to what they said, and analyzing the details that might make them “healthier, wealthier, or happier.”

“I can’t say I always wanted to be a founder, but I think my natural tendencies and characteristics pushed me to become a founder,” he said. “And despite the ups and downs, I wouldn’t trade it for anything.”