Teen banking service Step raises $100M Series C, announces Steph Curry’s investment – TechCrunch

Posted on

Step, the digital banking service aimed at teens and endorsed by TikTok star Charli D’Amelio, introduced this morning the shut of a $100 million spherical of Series C funding after rising to over 1.5 million customers simply six months after launch. The new spherical, led by Normal Catalyst, comes shortly after Step’s $50 million Series B, introduced on the finish of final yr after the startup hit half 1,000,000 customers in solely two months post-launch.

The new spherical additionally consists of participation from Step’s present buyers, Coatue, Stripe, Charli D’Amelio, The Chainsmokers, Will Smith and Jeffrey Katzenberg, and brings on newcomer Franklin Templeton, signaling a plan to maneuver into investments is on the horizon. It additionally consists of actor and musician Jared Leto. Step can also be formally asserting NBA All-Star Stephen Curry as an investor, which had not beforehand been disclosed, in addition to former Sq. executives, Sarah Friar, Jacqueline Reses and Gokul Rajaram.

On account of the fundraise, Kyle Doherty of Normal Catalyst is becoming a member of Step’s board. To date, Step has raised over $175 million.

Picture Credit: Step

Based on CEO CJ MacDonald, Step hasn’t but spent the cash from its Series B but, however believes the extra funds can assist the startup to develop extra rapidly.

“We’ve signed up greater than 1,000,000 and a half accounts within the first six months. We’re signing up 10,000 accounts-plus a day, and there’s simply numerous issues that we need to do to deliver this to tens of millions and tens of millions of households to assist educate the subsequent era be smarter with cash,” he says. On the time of the Series B, for comparability, Step stated it was including spherical 7,000 to 10,000 accounts per day.

“Truthfully we don’t want the capital,” MacDonald added. “It’s simply we expect velocity to market is basically key and we expect we will speed up our development and spend money on infrastructure.”

The corporate can also be planning to rent throughout operations, engineering, product, and design, to double its now 65-person staff over the subsequent yr.

Step in the present day competes in a crowded market of mobile banking companies geared toward a youthful demographic, but it surely’s certainly one of only a few that targets youngsters ages 13 to 18. By Step’s app, teenagers acquire entry to an FDIC-insured checking account with out charges and a secured Visa card that helps them to ascertain credit score earlier than they flip 18. The app additionally presents Venmo-like performance for sending cash to mates.

Picture Credit: Step

Step’s development thus far has benefitted from a mixture of things together with word-of-mouth, use of social media, and its common referral program, which has paid out a number of {dollars} per new sign-up. Step has additionally leveraged its partnerships with social media influencers like D’Amelio and Josh Richards in addition to celebs like Step investor Justin Timberlake.

The corporate believes the Curry announcement might also assist to lift consciousness concerning the banking app. As a father of three, if Curry talks about introducing Step to his personal youngsters, individuals will take discover.

Whereas the extra funds are targeted on driving development, Step can also be excited about its future as its present customers start to age up. The corporate plans to enter into the credit score and lending market, in addition to introduce investments in some unspecified time in the future sooner or later. The Franklin Templeton investment might be helpful right here, MacDonald notes.

“Franklin [Templeton is] clearly, one of many largest monetary establishments on the planet. And, as we begin excited about investments and the journey of the client, to have an excellent model like Franklin Templeton that’s invested on this spherical — I believe it’s only a testomony to the place they see the world going,” he says.

Step’s fundraise falls on the identical day that competitor Current and Greenlight, each who focus on households, additionally raised new rounds.


Source : TechCrunch

Originally posted 2021-04-27 15:58:04.

Gravatar Image
Hello, my name is Noorridlo Alif Setyawan. I’m a digital marketer and freelance UI / UX designer based in Surakarta interested in digital marketing, graphic design and blogging. I am a young digital dreamer influenced by technology, design and people. I am a dreamer and a fanatic of all digital things. I love minimalist design and clean design.