Failed 2024

    Synapse

    Banking-as-a-Service platforms handling customer deposits face existential risk if compliance and reconciliation fail.

    Founded → Closed

    2014 → 2024

    Funding Raised

    $50M

    Industry

    Fintech/BaaS

    Country

    USA

    IdeaProof AI Failure Score

    72/100
    Market Fit RiskBurn Rate RiskFounder Risk
    Market Fit Risk
    60
    Burn Rate Risk
    65
    Founder Risk
    50

    Full Analysis

    Synapse provided banking-as-a-service infrastructure allowing fintech apps to offer bank accounts and debit cards. When the company filed for bankruptcy in 2024, up to $85M in customer funds were unaccounted for across partner banks. The bankruptcy trustee discovered massive reconciliation issues between Synapse's records and actual bank balances. Hundreds of thousands of end-users had their accounts frozen.

    Could This Failure Have Been Prevented?

    IdeaProof's AI validates market demand, competitive positioning, and business model viability in minutes — catching the exact issues that sank Synapse.