Copper, a US bank which set out to become teens’ bank account of choice, has raised $29m in Series A funding.
The round was led by Fiat Ventures with participation from Panoramic Ventures, Insight Partners, Invesco Private Capital and all existing investors. The new round brings Copper’s total investment to $42.3m, just seven months after closing its seed round.
Launched in 2019, Copper describes itself as a teen-orientated banking service with a grounding in financial literacy. The bank also has set its sights on giving teens their first experience with investing and helping them learn how to build wealth.
The bank offers features like personalised debit cards, access to 50,000 ATMs and support for digital wallets like Apple Pay, Google Pay and Samsung Pay. Copper said Parents use its services to send money to teens and monitor their spending. Teens can set up direct-deposit for after-school and summer jobs and pay friends using convenient P2P transfers, while getting tips on finance fundamentals like dividends, budgeting and compound interest.
Copper said it will use the funding to expand its banking service into a full-featured, teen-friendly financial platform.
Liz Frazier Peck, financial advisor and Copper executive director of Financial Education, said, “Teens are intensely curious about investing. They just don’t have experience weighing risks or balancing a portfolio. That’s why it’s essential to get them comfortable with the different options early on — ideally in a space where they’re surrounded by good advice and can be supervised by their parents.
“Copper is like a drivers permit. It gives teens experience ‘behind the wheel,’ but there’s always an adult in the passenger seat.”
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