Personal finance platform Current has secured a $5m Series A funding round led by QED Investors, with Cota Capital also participating.
Founded in 2015, Current is a debit card and financial support mobile application for teenagers. The API-based platform allows parents to transfer money to their children’s account, set up monthly allowances, implement spending controls, reward chores, and check-out spending.
Through the application the teenager is able to use the debit card to make purchases, put money into a savings wallet, or donate money to local and national charities.
Current founder and CEO Stuart Sopp said, “More and more consumers and retailers are eschewing cash for digital payments, yet the market seems to want teenagers to start-off with a traditional checking account. We are introducing teenagers into the financial system with digital payments and a set of mobile tools that leave behind the outdated structures of traditional banking and better prepare them for the future.”
As part of the transaction, QED founding partner Frank Rotman will join Current’s board of directors.
This investment comes hot off the heels of the previous funding round, with the company picking up a $3.6m seed round earlier in the year. The capital injection saw investments from Expa, Human Ventures, and Future Perfect Ventures, among others.
Earlier in the year Australia based Spriggy, which provides a prepaid card for children to help manage finances, secured a $2.5m funding round from Alium Capital.
Last week QED led the $8m Series A funding round into True Link Financial, a retirement support solution that provides money management, investments and insurance products.
The personal finance sub-sector of WealthTech, has seen a rise in funding in Q3 2017, after a disappointing start of the year in funding. The last quarter saw $512m deployed, compared to the first two quarters which had a combined total of $190m invested.
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