Within six months of its launch, financial services company Step reached over 1.5 million users. Built on a core tenant of financial literacy, the company’s financial tools and services help teens and families build financial health.
The fintech startup clearly identified an unmet need as 88% of users opened their first ever bank account with Step. In addition to signing on with a no cost FDIC insured bank account, users receive a secured spending card and access to a P2P payments platform allowing them to send and receive money instantly.
Step’s latest raise gained the backing of big-name celebrities like Will Smith, The Chainsmokers, and Jared Leto, They joined earlier investors Alex Rodriguez, Justin Timberlake, Josh Richards, Stephen Curry and former Square executives Sarah Friar, Jacqueline Reses and Gokul Rajaram.
“For too long, conversations about money –– specifically how to manage it –– have been avoided despite what a critical role they play in shaping the future of the next generation,” said Leto. “Over twenty years ago, I set out to tackle this problem by starting a company in the space, so I’m excited to see Step addressing the financial literacy crisis head on with game-changing technology built to help young people learn about money in their digitally native environments.”
A Step survey found that despite 97% of teens believing financial literacy is important, they largely abandoned traditional banks, feeling overlooked and underestimated by them. This led them to embrace fintechs like Step, seeking a financial partner whose offerings are free of fees, built for their teenager needs, and is trustworthy. Step fulfills all three criteria.
Step plans to use this new funding to further bolster their product infrastructure. They want to introduce additional products and features to help teens save money and budget intuitively. An additional focus is on hiring for key roles to support their rapid expansion in filling the financial literacy gap.
“Our mission is to help improve the financial futures of the next generation and we’re thrilled to have such a massive vote of confidence from investors, especially during Financial Literacy Month,” said CJ MacDonald, Founder and CEO at Step.”
The Series C round was led by General Catalyst and Kyle Doherty, Managing Director and now a Step board member, describes the important momentum Step has that brought in such a range of high profile investors.
“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.”
Returning investors include: Coatue, Stripe, Charli D’Amelio, Franklin Templeton and Jeffrey Katzenberg.
Read about another Fintech Startup that is helping Underserved Communities
