Two Gen Z college dropouts launch credit card startup to combat financial nihilism

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Are the kids alright? Reporting on fintech usually leads to a rather pessimistic response to this timeless question. From prediction markets to cryptocurrency to zero-day options, each new financial offering aimed at Gen Z appears to embrace “economic nihilism”—the notion that the system is fixed, so you may as well pursue rapid wealth.

Mine, a credit card and financial planning startup created by two Gen Z university dropouts, is working to reverse this pattern. The company has secured $14 million in fresh capital through a Series A round led by 359 Capital, with continued participation from existing backer Kleiner Perkins. Founders Carlo Kobe and Scott Smith are convinced they can persuade their peers to stop wagering their earnings on speculative bets. Kobe explained that the same tendencies driving crypto investments and prediction market gambling actually benefit their mission, adding that young people desperately seek hope and greater assurance that financial independence is attainable.

Kobe and Smith launched Mine (initially named Fizz, but renamed due to a naming conflict with another Gen Z app) through Y Combinator during the credit card fintech boom of the early 2020s. Recognizing the challenges young people face when obtaining their first credit cards, they created a product that operates like a debit card while helping users build credit history. The design includes safeguards that discourage spending beyond the balance in their connected checking accounts. (The company markets it as a debit card, though it’s supported by a credit line and issued by fintech-oriented Lead Bank.)

Per Ilya Fushman, a Kleiner Perkins partner, the card serves as an entry point to capture consumers at the start of their financial lives. Mine has expanded into additional offerings, such as MoneyGPT, an AI-driven application that provides personalized financial guidance by analyzing users’ connected accounts. Rather than enriching the already affluent, Kobe stated that Mine aims to democratize customized, practical financial counsel for the masses.

The company has approximately one million users, though Kobe wouldn’t disclose the breakdown between free users (who get basic budgeting and credit monitoring) and paid subscribers (who receive the card and premium features). Mine also generates income through referral partnerships, such as reward programs with companies like Uber. The startup recently reached $10 million in annual recurring revenue, with 70% of its users under age 30. David Hartwig of 359 Capital noted that there’s significant potential in educating and empowering their customer base with tools that restore their sense of financial control.

Brexit 2.0…The fintech world got a late holiday gift this year with Thursday’s announcement that CapitalOne is purchasing Brex, triggering one of the liveliest days I’ve witnessed on X lately. The news prompted extensive analysis, snarky posts from various parties, and debate over whether the $5 billion price tag represents a successful exit. For coverage of the corporate credit card battles spanning 2017-2026, see my September piece.

Leo Schwartz
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