Evaluating only Koho Financial’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
Daniel Eberhard founded Koho in Toronto to build an alternative banking experience for Canadians.
FUNDING
Raised CAD $115M Series D; expanded into earned wage access and employee savings products.
CEO CHANGE
Founder Daniel Eberhard ousted by board over CAD $4M/month burn rate and strategic disagreements.
LAYOFF
40% of 350 staff laid off; earned wage access product discontinued; company pivoted to prepaid card.
Full Analysis
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Documented cause
Toronto-based Koho raised CAD $210M to deliver embedded financial wellness — savings, earned wage access, and credit building — to Canadian employees and gig workers. In 2023, founder Daniel Eberhard was ousted as CEO in February after board conflict over burn rate exceeding CAD $4M monthly. The company laid off 40% of its 350 staff in March 2023. Although not fully shut, the core earned wage access product was discontinued and the company pivoted to a narrower prepaid card model.
Lesson
“High burn rates on product breadth destroy fintech wellness platforms before network effects kick in.”