Interview: Lilac Bar David — CEO of Lili | Mobile Banking for Freelancers
Blazer Interview Series
In this episode we interviewed Lilac Bar David, the Founder & CEO of Lili. Lili is mobile banking app for freelancers. Lili has a raised a total of $25M and is backed by Group 11, Primary Venture Partners, Foundation Capital, AltaIR Capital, and Torch Capital.
Can you tell me a bit about yourself? What led you to become an entrepreneur?
I have about 20 years of experience in the business and fintech worlds. After many years on the traditional side of banking and payments, I wanted to create products that have an actual impact and generate value for its users — something that is simple and easy to use and solves real pain points. It started with a company I founded, Pepper, and grew into wanting to generate a bigger impact in the biggest global economy. That’s when I co-founded Lili where I’m currently the CEO.
What is Lili? How is Lili different from traditional banks?
Lili is the all-in-one banking app designed for freelance workers. Lili is the only company that combines banking services with real-time expense tracking, tax tools and financial insights, so independent workers can stay in control of their finances while saving time and money. Our app features are tailored specifically to meet independent workers’ needs as they’re managing their money. We recently added additional features, including enhanced expense management, which allows customers to sort expenses into even more categories with a quick swipe, plus add a note and a photo of a receipt; automatically generated quarterly income and expense reports; digital debit cards that customers can use before the physical card arrives in the mail; and Google Pay functionality. Right now, Lili is the only company that combines all of these banking services in one.
What are some of the challenges that freelancers face when it comes to banking?
Now more than ever, freelancers are eager to save time and money. On average, freelancers waste 30 days each year on admin tasks across project/client management, bookkeeping and finding work while half of freelancers have experienced non-payment by clients. This causes them to lose an average of $6,000 a year (about 13% of their income) due to lack of payments.
There’s also immense difficulty filing taxes each year when you’re a freelancer. In the US, Social Security and Medicare usually cost about 7.65% of a typical annual income and freelancers have to pay an additional 7.65% plus self-employment tax to their states. Especially with the spread of COVID-19, freelancers are struggling to balance work and life, with no “traditional” paid time off.
Where do you see yourself in the market long term?
We’re very focused about making sure that every freelancer in the US knows about Lili given that the pandemic-induced trend toward freelancers shows no signs of stopping. The user experience is the top priority for us and solving the pain points of independent workers even better. As the future of work continues to evolve more quickly than ever toward independence, Lili is changing how modern workers grow their businesses, saving them time and money for the things that matter.
Congratulations on raising a $15M round of funding, how do you plan on using this round to expand Lili?
We’ve grown faster than expected due to the pandemic-induced trend toward independent work. We plan to grow our customer base and our team, particularly our engineering team. We’re seeing an acceleration of growth and want to continue that momentum.
What is a lesson you have learned while building your company?
Stay focused on solving real problems and generating added value to your customers. Delivering simple and smart experiences will increase engagement and overall product satisfaction.
What do you think the future holds for traditional banks and fintechs, in terms of what they can offer to customers?
The future should be about collaboration. Traditional banks need to see the value in offering fintech solutions to specific groups with different needs. They should see the value in that and want to make impactful products.
Any tips for early stage founders?
Right now, I recommend trying to streamline and minimize all expenses, while focusing on your core product offering. You need to generate as much value as possible for your users and customers while also showcasing your market opportunity to investors.
Have a particular startup you want to hear from? Leave a comment down below with your thoughts on this interview and any interview requests that you have in mind.
