The economic crisis is hitting the fintech scene particularly hard and it’s not stopping at Hamburg-based startup Tomorrow. The green bank has decided to make drastic staff cuts and terminated a quarter of its workforce on its way to profitability.
Shortly before X-Mas, Hamburg-based fintech Tomorrow announces a mass layoff. “To be able to guarantee stability for the majority of the team in the coming year, we have to take a painful step and part with a quarter of the workforce,” said co-founder and CEO Jakob Berndt.
Tomorrow was founded in 2018 by Inas Nureldin, Jakob Berndt and Michael Schweikart and services 120,000 current customers. However, the company has not been profitable: although Tomorrow has since discontinued its free checking account and now takes monthly fees from customers, the fintech only managed to generate €1.6 million in revenue with a net loss of around €14.4 million in 2021.
To continue pursuing its goal and, above all, to be able to finance itself, Tomorrow raised 3.5 million euros from the crowd in the fall – including a convertible loan, the Hamburg-based company received just under nine million euros this year. According to crowd-investing documents, the pre-money valuation was 90 million euros. However, according to the founding team, the sum did not help bring the eco-bank to break-even. That’s why Tomorrow has decided to reduce its workforce significantly.