Just some days after Until Monetary picked up a $5 million funding for its “kids-focused” spending administration app and Greenlight raised a whopping $260 million for its know-how that helps mother and father increase “financially good youngsters,” teen banking app Step introduced that it had scored $100 million in Collection C funding for its monetary wellness answer devoted towards serving to younger individuals develop sound monetary habits.
“Our mission is to assist enhance the monetary futures of the subsequent technology and we’re thrilled to have such an enormous vote of confidence from traders, particularly throughout Monetary Literacy Month,” Step CEO and founder CJ MacDonald mentioned. “Thirty-eight % of teenagers say they lack the monetary sources wanted to attain monetary independence and it is a downside Step is nicely positioned to assist clear up as we educate tens of millions of households day-after-day.”
The spherical was led by Basic Catalyst and featured participation from an exceptionally numerous group of present traders. This roster included Coatue, Stripe, Charli D’Amelio, The Chainsmokers’ Mantis VC, Will Smith’s Dreamers VC, Jeffrey Katzenberg’s agency WndrCo, actor Jared Leto, Franklin Templeton and NBA All-Star Stephen Curry. The funding takes Step’s whole funding to greater than $175 million.
Within the time since Step launched in September of 2020, the corporate has amassed greater than 1.5 million customers of its monetary wellness app. Step offers customers a free, FDIC insured checking account, a secured spending card, and entry to a P2P funds platform that allows customers to ship and obtain cash immediately. With 88% of the corporate’s customers saying that Step is their first checking account, the platform claims that it’s the solely banking platform that allows youth to construct a constructive credit score historical past earlier than they attain 18 years previous.
“For too lengthy, conversations about cash –– particularly learn how to handle it –– have been prevented regardless of what a important position they play in shaping the way forward for the subsequent technology,” actor, musician, and serial tech investor Jared Leto mentioned. “Over twenty years in the past, I got down to sort out this downside by beginning an organization within the area, so I’m excited to see Step addressing the monetary literacy disaster head on with game-changing know-how constructed to assist younger individuals find out about cash of their digitally native environments.”
Step is headquartered in San Francisco, California, and was co-founded by MacDonald and Alexey Kalinichenko. The corporate’s monetary options are backed by financial institution companion Evolve Financial institution & Belief.