Failed 2024
Tally
A credit card debt management app funded by cheap capital collapses when interest rates spike and refinancing margins vanish.
Founded → Closed
2015 → 2024
Funding Raised
$172M
Industry
Fintech
Country
USA
IdeaProof AI Failure Score
62/100
Market Fit Risk
55
Burn Rate Risk
70
Founder Risk
20
Full Analysis
Tally helped consumers manage and pay down credit card debt by offering lower-rate lines of credit to consolidate balances. The model worked when rates were near zero. When the Fed raised rates aggressively in 2022-2023, Tally's cost of capital soared while it couldn't raise rates enough to maintain margins. The company shut down in 2024 after burning through $172M.
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 Tally.