Parachute Raises $1.5M Seed Financing Round

In October 2024, Parachute announced the completion of a $1.5M seed financing round. Betakit did a great job covering the news. The round was led by Adrenaline Fund, along with existing investors Highline Beta, ex-Manulife CEO Rick Lunny and a group of angel investors.

Parachute is aiming to help people with too much debt, and in particular high interest debt. Many Canadians struggle with high interest and payday loans debt and can’t dig themselves out. Rates with the high interest lenders go up to 47% and payday lenders to almost 400% annualized.

Parachute provides three connected services including a debt consolidation loan (saving their customers $200+ per month), a financial wellness app and a “cash-back” rebate system to encourage customers to make better financial decisions. Parachute members can get 10% of the loan back – in cash – by setting and meeting monthly financial goals. 70% of their customers have self-assessed themselves against their goals every month since they started demonstrating solid engagement. Combined, Parachute provides a comprehensive solution to help people become financially healthier.

The company was founded in early 2022 and emerged from Highline Beta’s venture studio. Since then the company has continued to iterate and grow, in particular with a credit union partnership strategy.

“The credit crisis is real for Canadians and it’s not getting easier,” said Marcus Daniels, Founding Partner at Highline Beta. “Parachute’s team, led by Bruce Hodges, knows how to fix it. People need solutions to get out from under their debt load, with the right educational content and personalized nudges to change behaviour. The Parachute team is incredibly committed to making a difference.”

To learn more visit https://www.myparachute.co/