Step, the digital banking service aimed at teens and endorsed byCharli D’Amelio, announced the close of a $100 million round of Series C funding this morning after growing to more than 1.5 million users in just six months after launch. The new round, led by General Catalyst, comes shortly after Step’s $50 B, announced at the end of last year after the startup hit half a million users in only two months post-launch. The new includes Step’s existing investors, Coatue, Stripe, Charli D’Amelio, The Chainsmokers, Will Smith, and Jeffrey Katzenberg. It brings on newcomer Franklin Templeton, signaling a is on the horizon. It also includes actor and musician Jared Leto. The Step is also formally announcing NBA All-Star as an investor, which had not previously been disclosed, as well as former Square executives Sarah Friar, Jacqueline Reses, and Gokul Rajaram.
As a result of the fundraising, Kyle Doherty of General Catalyst is. To date, Step has . According to CEO CJ MacDonald, Step hasn’t yet spent the money from its Series B but believes the can help the startup grow more quickly. “We’ve signed up more than a million and a half accounts in the first six months. We’re signing up 10,000 accounts-plus a day, and there’s just a lot of things that we want to do to bring this to millions and millions of households to help to be smarter with money,” he says. At the time of Series B, Step said it added around 7,000 to 10,000 accounts per day for comparison.
“Honestly, we don’t need the capital,” MacDonald added. “It’s just we think speed to market is key, and we think we can accelerate our growth and invest in infrastructure.” The company also plans to hire across operations, engineering, product, and design, to double its 65-person team over the. Step today competes in a crowded aimed at a younger demographic, but it’s one of the very few targets teenagers ages 13 to 18. Through this app, teens can access an FDIC-insured bank account without fees and a secured before they turn 18. The app also offers Venmo-like functionality for to friends.
Step’s growth has benefitted from a combination of factors, including word-of-mouth, use of also help to raise awareness about the banking app. As a father of three, people will notice if Curry talks about introducing Stepp to his children. During the additional funds, aa focus on driving growth, Stepp is also thinking about its badgege. The company and introduce investments at some point. The Franklin Templeton investment could be helpful here, MacDonald notes., and its popular referral program, which has paid a few dollars per new sign-up. The step has also leveraged its partnerships with influencers like D’Amelio and Josh Richards and celebrities like Step investor Justin Timberlake. The company believes the Curry announcement may