# Splitsy Share monthly bills with roommates. We pay the bill then charge each person. ## Elevator pitch We allow peers to split large bills such as rent, electric, water, cable, and more, automatically each month. In short, we pay the bill for the users and then charge each person their individual portion. - Canonical URL: https://wefunder.com/splitsy - Entity ID: wefunder:company:71795 - Last updated: 2026-06-16T05:02:29Z - Generated at: 2026-06-16T14:08:52Z ## Quick facts - 2 Bank Sponsor Offers, 2 Pending! ๐Ÿ’ธ - ๐ŸŽ‰ 2021 1st Place Regnier Venture Challenge Winner! - 2020 Q4 Digital Sandbox KC $20,000 Grant Recipient ๐Ÿ’ธ - $200+ Billion Shared Apartment & Utility Industry ๐Ÿ‘ฅ - $400+ Billion Interchange Revenue Industry ๐Ÿ’ณ - Over 19 Million people in the U.S. share bills ๐Ÿค - Patent Pending Technology โœ”๏ธ - A waitlist of users ready to Beta Test ๐Ÿ“ฑ ## Active fundraises - wefunder:fundraise:38517: 4(a)(6) successful (USD) ## Story Our co-founders, Brad & Joe, moved to Kansas City from St. Louis in August of 2017 and became roommates while attending the University of Missouri - Kansas City. After enjoying their time in on-campus housing, Brad & Joe were on a mission to find their first apartment. The idea of Splitsy started here. We needed a better way to split monthly bills.Shortly after moving into their first apartment, Brad decided to grow his website development business. His business caused a delay in paying bills due to the nature of contract work. Joe and Brad worked out a temporary solution to pay bills together, which then sparked the idea of Splitsy. When they added a third roommate, splitting bills became even trickier, accelerating their passion for the idea. We joined a local Cohort Program.We were accepted into the UMKC E-Scholars Cohort program where we refined our business model, redeveloped our idea, and connected with mentors that have helped us take our idea to the next level. After completing the UMKC E-Scholars program, Brad connected with a colleague of his through a volunteer program, Nolan McMichael, who also experienced the problem on a larger scale at his previous university prior to moving back to Kansas City and joining our Splitsy team. We received proof-of-concept grant funding!We pitched for the Digital Sandbox KC Program in October of 2020 where they choose 4 of 25-30 applicants to receive a $20,000 grant paid to a vendor of our choice. Digital Sandbox KC is backed by some of the largest enterprises in the Kansas City metropolitan area and is sponsored by the University of Missouri - Kansas City with over $80M in follow-on funding. Technology BuiltOver the two years leading up to receiving Digital Sandbox Funding; Brad, Joe, (and later) Nolan, worked diligently surrounding themselves by mentors to truly finetune the problem and conducted customer interviews to validate what our users truly want. With Digital Sandbox, we have been able to develop our Minimal Viable Product (MVP) which is set to be in the hands of our BETA users into the early days of Q2 2021. Leading up to this BETA launch, we are working with a subset of BETA users to do continued Quality Assurance testing on the application. Our group creation and the linking process are outlined below. We're linked with over 17,000 billers under a real-time payment engine. Additional screens on the grouping process, transaction management, and group management. Our users can easily manage their shared groups, payments, and more! Our solution doesn't just stop at an automated bill pay solution, we have development plans on our product roadmap to expand our application beyond the consumer application and B2B solutions. Demo VideoOur CompetitorsThe bill pay FinTech industry is growing substantially. However, we already have a few competitors in the space such as Splitwise, Venmo, CashApp, etc. Our competitors currently only have a way to "send money to friends & family for bills" or to "manage bills with friends & family" but our competitors do not bridge the gap between the two in a way that Splitsy does. We allow users to manage their bills while offering an automatic monthly bill payment system. Please note that this is an estimated timeline. Completion of these milestones is not guaranteed.Our Advisors We're eager to launch and ready for you! Shortly after COVID-19 hit, we were forced into a remote work setting and buckled down to accelerate our growth of Splitsy. We've grown our board of mentors, introduced ourselves to VC companies (for post-WeFunder), expanded our product roadmap, and more. We've come this far, and we're ready for you to "Go Splitsies" with us!  ## FAQ 1. **After looking over the info provided for Splitsy, I have a couple of questions: (1) As I understand it, you don't have an actual product yet, correct? (2) What will your product ultimately provide that users can't obtain with a calculator? Is it just the automatic bill payment...** - Hi Kevin, Thank you for all the great questions. 1.) Yes, that is correct that we do not have our product launched yet. We are currently finalizing the MVP development and will be rolling that out to our BETA users in early Q2 of this year. Our goal is to work quickly and efficiently with our BETA users to test and launch our product. 2.) Our product provides a much-needed solution to those who are currently splitting bills with peers. The issue is not our target market's inability to calcula... 2. **Hi, Are you all planning on remaining an LLC for tax purposes? I really like the pass-through model. Also, do you all anticipate becoming profitable any time within the near future? Thanks** - Hey Lucas, Thanks for reaching out to ask these questions! 1.) We intend on remaining an LLC for the foreseeable future given the advantages it provides for start-ups, including its tax benefits. We do not anticipate making a change within our corporate structure unless it proves to have large advantages for the company long-term. 2.) Our exact breakeven point is tough to pinpoint as it will be entirely dependent on how quickly we are able to scale our product(s). The majority of our variable... 3. **I like this concept. What are your main competitors in this market? I would imagine one would be Splitwise; what would you say your platforms advantage over Splitwise is?** - Hi Merid - We're excited to hear you like the concept! We have a few competitors in the space, most notably Venmo, CashApp, & Splitwise (as you mentioned). These applications are all great and serve a great purpose for paying friends back for stuff like fast food that is relatively inexpensive to cover for your friends. While consumers do use these applications for Rent & Utilities, many are put with the financial burden of covering these large transactions for their peers. We have a ... 4. **Remaining an LLC is a mistake long term, you wonโ€™t attract capital from investors seeking to take advantage of the QSBS tax credit.** - Hi Patrick - Thank you for the information on the QSBS tax credit in relation to remaining an LLC. We are not opposed to transitioning away from an LLC at a later date. I'd be interested in hearing more from you on this! 5. **Hi Brad, I definitely see the need and looks like a good business model long term including the ideas on how to expand the customer base. One customer-oriented question for you. Three of us are sharing a flat, I presume our Splitsy accounts are all connected to our banks with ...** - Hi Stu, This is a great question and one that we hear often. Currently, we will not authorize that individual user's payment for our MVP but still process the rest of the funds (i.e, 2 of the 3 individuals). We will then notify the users in the group that the bill wasn't completely paid and they will have to work individually to get that last portion paid. This isn't ideal, but it follows a very similar process as to what you would do if you split a flat without Splitsy. We will then be rolli... ## Team - Brad Starnes (CEO & Co-Founder) - Joe Allen (COO & Co-Founder) - Nolan McMichael (CFO & Co-Founder) ## Q&A - Q: Hi Brad, I definitely see the need and looks like a good business model long term including the ideas on how to expand the customer base. One customer-oriented question for you. Three of us are sharing a flat, I presume our Splitsy accounts are all connected to our banks with ACH access. One of our accounts doesn't have sufficient funds to pay the utility bill. What happens? - A: Hi Stu, This is a great question and one that we hear often. Currently, we will not authorize that individual user's payment for our MVP but still process the rest of the funds (i.e, 2 of the 3 individuals). We will then notify the users in the group that the bill wasn't completely paid and they will have to work individually to get that last portion paid. This isn't ideal, but it follows a very similar process as to what you would do if you split a flat without Splitsy. We will then be rolling out a feature that allows you to request one (or multiple) roommates to cover your portion of rent that you don't have to pay and then set up a payment plan in the Splitsy app to pay them back. A strategic bank sponsor will allow us to roll out more features around this problem in our product roadmap. I'd love to chat more if you have any more questions! - Q: Remaining an LLC is a mistake long term, you wonโ€™t attract capital from investors seeking to take advantage of the QSBS tax credit. - A: Hi Patrick - Thank you for the information on the QSBS tax credit in relation to remaining an LLC. We are not opposed to transitioning away from an LLC at a later date. I'd be interested in hearing more from you on this! - Q: Any updates? - Q: I can only do $1000 at this time, so I doubt I qualify :) - A: I will reach out to our account manager at WeFunder but I believe that we cannot reopen the campaign. If you email us at investors@splitsy.app, I can get you on our mailing list so if we launch another WeFunder campaign in the future you'll be one of the first to know! - Q: Is it to late to invest? - A: Our WeFunder campaign has closed. We are, however, interested in larger outside investments at this time! If you feel that you may have a substantial investment to make please email us at investors@splitsy.app and we can explore additional investment opportunities! - Q: How to reconfirm my investment - A: We'll reach out to you individually! - Q: Hi Brad, a bit unclear about the revenue model for the company. Can you walk me through an example. Let's say me and my friend (Sam) are sharing an apartment we have 2 bills to pay: 1) Rent of apartment $1500 split 50/50 and 2) Monthly grocery bill of $500 (50/50) which Sam asked me to pay for him while he repays me in the next 2 months. Can you walk me through the process and how splitsy makes money? - A: Hi Esmaeel! My apologies if this isn't clear, I'd love to hear as to how we could make it more clear in the campaign for future investors. Currently, there is no option for you to accept repayments through the Splitsy app for bills you front on behalf of users. We're actually developing a process to remove you as a roommate from that equation and give the opportunity for consumers to pay us back for bills we front, but that's not going to be available for our launch! Here's a high-level view as to how we make money. As a consumer, every time you swipe your debit/credit card the merchant pays a processing fee, and then your bank earns an "interchange rebate" for issuing those funds to the merchant on your behalf. We've simply inserted ourselves into this existing equation where our bank sponsor will share this interchange revenue they earn with us. For payments like Rent, Mortgage, and Auto Loans, we will be charging a small service fee to split payments since we can't earn an interchange rate on ACH payments. We have many more revenues streams that are in development and will be launch next year! - Q: Hi I just have one question what Is stopping venmo or cash app or any of the others do what you do? - A: Hi William - That's a great question! We feel that companies like Venmo and Cash App are quite comfortable with where they're at in the market and at this point in time are unwilling to be the ones to pioneer this change. Over the past several years, recurring payments and bill management features have been requested by users in various forums and they have not been implemented. We've conducted many hours of user experience research and our early adopters have helped us craft a long-term user experience that would not work with the way these competitors have their current UI set up. Additionally, we have a provisional patent application on file with the USPTO that covers many aspects of our software around the functionality in which we allow users to split, share, and manage their shared bills in real-time. Feel free to schedule some time on my Calendly on the "Overview" page if you have any additional questions! - Q: I like this concept. What are your main competitors in this market? I would imagine one would be Splitwise; what would you say your platforms advantage over Splitwise is? - A: Hi Merid - We're excited to hear you like the concept! We have a few competitors in the space, most notably Venmo, CashApp, & Splitwise (as you mentioned). These applications are all great and serve a great purpose for paying friends back for stuff like fast food that is relatively inexpensive to cover for your friends. While consumers do use these applications for Rent & Utilities, many are put with the financial burden of covering these large transactions for their peers. We have a real-time bill payment directory with access to over 15,000 billers which gives our users the ability to link their billers and forget about these transactions. We're introducing automatic payments to multiple users! There's no more fronting the bill, figuring out who owes what, or how much to pay for your share. We're even introducing virtual cards (and many other features) that allow you to share transactions with any merchant (Walmart, InstaCart, etc.) who aren't already linked with our platform. Let us know if you have any additional questions and thank you for your investment! - Q: Hi, Are you all planning on remaining an LLC for tax purposes? I really like the pass-through model. Also, do you all anticipate becoming profitable any time within the near future? Thanks - A: Hey Lucas, Thanks for reaching out to ask these questions! 1.) We intend on remaining an LLC for the foreseeable future given the advantages it provides for start-ups, including its tax benefits. We do not anticipate making a change within our corporate structure unless it proves to have large advantages for the company long-term. 2.) Our exact breakeven point is tough to pinpoint as it will be entirely dependent on how quickly we are able to scale our product(s). The majority of our variable expenses become substantially less expensive as we increase our total dollar amount processed each month. We are actively working on long-term contract negotiations with our vendors and potential B2B partners to decrease our COGS and increase our product offerings to our users which will ultimately accelerate our break-even timeline. Our goal is to break even with our initial consumer application within the first twelve months, allowing us to reinvest into continued products, research, and development. Please let us know if you have any other questions. - Q: After looking over the info provided for Splitsy, I have a couple of questions: (1) As I understand it, you don't have an actual product yet, correct? (2) What will your product ultimately provide that users can't obtain with a calculator? Is it just the automatic bill payment? (3) Your projected user growth is exponential, beginning with 40,000 users in the first year. How do you plan to drive that user growth, and how big is the waiting list at present? (4) Given that there's no actual product at the moment, no revenues, and the company only has $119 in the bank, please help me understand the multi-million dollar valuation. (5) What's the exit strategy? - A: Hi Kevin, Thank you for all the great questions. 1.) Yes, that is correct that we do not have our product launched yet. We are currently finalizing the MVP development and will be rolling that out to our BETA users in early Q2 of this year. Our goal is to work quickly and efficiently with our BETA users to test and launch our product. 2.) Our product provides a much-needed solution to those who are currently splitting bills with peers. The issue is not our target market's inability to calculate a bill and figure out the exact split, it is the convenience factor of having to keep track of and calculate multiple bills each month of the year. The largest value-added to each user is the automation of payments between peers. This eliminates the need for the head of a household to collect multiple payments throughout the month from each individual responsible for that given bill, then making a payment on their behalf. Additionally, this provides historic records for payments made by each user rather than a user keeping track of each payment sent to the head of the household. While we are starting small with a lean MVP, we intend to quickly expand into a complete Financial Management platform for shared payment(s). 3.) We agree. 40,000 users in the first year is a large target market to obtain after just getting our product off the ground. Before I get into the specifics, I'd like to share where those numbers are developed from. Based on market research data, we estimate roughly 2.44 people per household, roughly 16,393 households to obtain by the end of our first year. We are uniquely positioned in the fact that 1 user within a household (or group), will drive additional users to share the payments. To drive this user growth, we are currently in the process of developing partnerships with apartment communities, home rental companies, local insurance agencies, private landlords, and more. In addition to these B2B partnerships, we are developing a consumer-focused marketing initiative. As you can see from our campaign, we have bootstrapped our business until receiving the Digital Sandbox KC Grant (paid directly to our vendor) and now raising additional capital. With that in mind, our Wait-List has organically grown to roughly 100 users without marketing. We ultimately did not want to overexpose our product too soon before launch. 4.) We are confident in the valuation we provided based on several key factors. The current valuation is derived from research conducted on other financial technology companies, our leadership team, mentors, and our ability to grow at a rapid pace. With the technology that we are building, we have a clear path to incorporate other features and expand to a much larger group of businesses & consumers. Splitsy is indeed pre-product and pre-revenue, however, we have been able to make significant strides through the work of our team and its resources without the need of a substantial capital injection. We have intentionally limited our funding until this point due to our network, resources, and self-funding so far. 5.) We believe our exit strategy comes down to if the time is right for us, if the time is right for our investors, and does the exit benefit or harm our users in the long-term. We see a potential for an exit, but we also see a lot in our future and plenty we want to accomplish and change in this industry before making an exit worthwhile. While we can't fully anticipate what that exit may look like, we see a potential for Splitsy to exit to companies in the rental, billing, and/or shared financial payments industry. We appreciate your interest in Splitsy and please don't hesitate to reach out if you have any additional questions!