Teen payment and banking firm Step raised $100m in Series C funding led by General Catalyst.
The new round, which brought its total funds raised to more than $175m, also included participation from Step’s existing investors Coatue, Stripe, Charli D’Amelio, The Chainsmokers, Will Smith and Jeffrey Katzenberg and newcomer Franklin Templeton. The investment round also included actor and musician Jared Leto as well as NBA All-Star Stephen Curry, former Square executives Sarah Friar, Jacqueline Reses and Gokul Rajaram.
In conjunction with the fundraise, Kyle Doherty of General Catalyst joined Step’s board.
The company will use the new funding to improve product infrastructure, add new features and hire for a number of key roles across its operations, engineering, product and design teams. While Step hasn’t yet spent the money from its Series B but the additional funds can help the startup grow more quickly, it said.
Furthermore, The company plans to enter into the credit and lending market, as well as introduce investments at some point in the future.
Step enables teens to get access to an FDIC-insured bank account without fees and a secured Visa card that helps them establish credit before they turn 18. The app also offers P2P payments allowing users to send and receive money to family and friends in real-time.
To reach more teens and help them manage money better, Step leveraged its partnerships with social media influencers like D’Amelio and Josh Richards, as well as Step investor Justin Timberlake.
The new funding comes shortly after its $50m Series B round at the end of last year. The firm recently marked 1.5 million users in its first six months growing at a pace of about 10,000 accounts a day.
Commenting on the funding round, Step CEO CJ MacDonald said, “As we move into a cashless era where digital content and transactions fuel our daily lives, the need for innovation in financial services increases. We want Gen Z to be more equipped and educated when it comes to money.”
Echoing a similar sentiment, Doherty added, “Gen Z is flocking to modern financial solutions that can be easily embedded within their digital lives and Step has a unique model for how to do this right.
“The team has built the elusive offering that teens want and families need, which has been validated by their incredible growth and market momentum.”
Copyright © 2021 FinTech Global
