— Finance

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

2 Mins read

Step, the digital banking service aimed at teens and endorsed by TikTok star Charli 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 million Series B, announced at the end of last year after the startup hit half a million users in only two months post-launch. The new round 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 plan to move into investments is on the horizon. It also includes actor and musician Jared Leto. The Step is also formally announcing NBA All-Star Stephen Curry 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 joining Step’s board. To date, Step has raised more than $175 million. According to CEO CJ MacDonald, Step hasn’t yet spent the money from its Series B but believes the additional funds 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 educate the next generation 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 next year. Step today competes in a crowded market of mobile banking services 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 Visa card that helps them establish credit before they turn 18. The app also offers Venmo-like functionality for sending money to friends.

Step’s growth has benefitted from a combination of factors, including word-of-mouth, use of social media, and its popular referral program, which has paid a few dollars per new sign-up. The step has also leveraged its partnerships with social media influencers like D’Amelio and Josh Richards and celebrities like Step investor Justin Timberlake. The company believes the Curry announcement may 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 future as its existing userbadgege. The company plans to enter the credit and lending market and introduce investments at some point. The Franklin Templeton investment could be helpful here, MacDonald notes.

348 posts

About author
As a blogger, I’ve had the opportunity to share my experiences and insights with other people. The most important thing I’ve learned about blogging is that it’s not about me. It’s about connecting with others. I love the idea of using writing to build relationships. I’m always thinking about what I can do to make my blog more useful, interesting, and accessible to others. I enjoy talking about technology, health, finance, food, and travel.
Related posts
— Finance

Increase Credit Limit Chase - Unlimited Credit Card Review

5 Mins read
Increase Credit Limit Chase – Chase Bank is the number one bank in the United States. They offer various financial services, including…
— Finance

Management Coaching for Leaders,

5 Mins read
Management Coaching for Leaders: A coaching process for leaders, managers, and business owners to help them navigate the minefield of business. Management…
— Finance

Pros and Cons of Renting Out Your Investment as an Airbnb

2 Mins read
Over the last few years, Airbnb has become an increasingly popular way for property owners to rent their homes. Higher Yields If…
Get All Latest Blog Direct In Your Website

Leave a Reply

Your email address will not be published. Required fields are marked *