Lightspeed COO David Baga Departs for Pay Advance Startup

David Baga Appointed New CEO of Even

A change in leadership is occurring at Even, the “on-demand pay” startup focused on providing financial stability to workers. David Baga will assume the role of Chief Executive Officer, beginning March 1st.

Transition of Leadership

Baga will be succeeding Jon Schlossberg, the company’s co-founder and current CEO. Schlossberg, however, will not be departing entirely; he will transition into a full-time role as Executive Chairman.

Baga’s Professional Background

Prior to joining Even, Baga served as Chief Operating Officer at Lightspeed Venture Partners, a prominent venture capital firm. He joined Lightspeed in late 2019.

His experience also includes positions as Chief Business Officer at Lyft and Chief Revenue Officer at RocketLawyer.

Even’s Mission and Impact

Founded in 2014, Even was created to challenge the payday loan industry. The company aims to provide workers, particularly those living paycheck to paycheck, with improved financial tools.

Instapay, a key product offering, allows workers to access wages they have already earned. This helps mitigate the need for high-interest payday loans when unexpected financial needs arise.

Even operates on a subscription-based model, aligning its interests with those of its users and avoiding predatory practices common in the industry.

Growth and Partnerships

The company has experienced significant growth, currently serving 650,000 members. A notable partnership with Walmart has been instrumental in this expansion.

Walmart recently announced wage increases for 425,000 of its in-store associates, representing approximately one-third of its workforce. 53% of Even members utilize the product on a daily basis.

Strategic Shift Towards Revenue Growth

Schlossberg explained that while Even has successfully developed a high-quality product, the company now requires a stronger focus on revenue growth.

He described himself as a “product-minded CEO” suited for the initial phase of development, but acknowledged the need for leadership with expertise in enterprise growth to achieve broader adoption.

The search for a Chief Operating Officer with enterprise sales experience proved unsuccessful, leading to the decision to seek a CEO capable of driving significant expansion.

Baga’s Connection to Even’s Values

Baga expressed a personal connection to Even’s mission, stemming from his upbringing. He stated he “grew up around a lot of blue-collar, first-generation Canadians,” allowing him to readily identify with the company’s goals.

His early career included sales roles at companies like Oracle, and startup experience at RocketLawyer, where the focus was on making legal services accessible to all Americans.

Experience at Lyft and Lightspeed

Baga joined Lyft in 2015, initially working on enterprise and urban partnerships. He later contributed to the development of Lyft Health, a rideshare service for non-emergency medical transportation.

Seeking a return to a smaller organizational structure after Lyft’s growth, he transitioned to Lightspeed Venture Partners as Chief Operating Officer.

Alignment and Future Plans

Baga emphasized a “strong values alignment” with Schlossberg and the Even team, recognizing their commitment to addressing genuine financial challenges with a sustainable business model.

He noted that Even is not a portfolio company of Lightspeed, but he was drawn to the opportunity through a connection with Schlossberg during the CEO search.

Baga stated that his initial priorities will be to familiarize himself with the team, customers, and product roadmap.

Schlossberg indicated that Even is poised to scale its operations, having already established a strong base of referenceable customers. The company anticipates raising a Series C funding round later this year.

Addressing Financial Insecurity

Despite ongoing economic uncertainties, Even aims to provide tools that empower workers to build financial resilience. The company believes that a well-designed system for improving pay access can have a significant positive impact.

Note: This article was updated on February 22, 2021, to clarify that Instapay provides access to already earned wages, and does not represent a pay advance on future earnings.