Step, a U.S.-based financial services company built for teens and families, announced on Wednesday it secured $50 million through its Series B round, which was led by Coatue, with participation from returning investors Stripe, Crosslink Capital, Collaborative Fund, and Will Smith’s Dreamers VC. To-date, Step has raised more than $75 million from investors.
Founded in 2018 and launched just two months ago, Step describes itself as the next-generation financial services company building the best banking experience to help teens and young adults achieve financial independence and knowledge at an earlier age.
“Step gives you a free bank account with zero fees. Track your balance, earn interest, deposit checks and manage your savings from the Step mobile app. You can also send and receive money instantly on your phone, shop with a personalized spending card and earn rewards.”
Step also reported that it has seen tremendous growth, with more than 500,000 users on the platform. Speaking about the investment round, CJ MacDonald, Founder and CEO at Step, stated:
“Since Step’s launch, we’ve seen massive demand for this new type of all-in-one banking solution, making it much easier for teens to learn about money management. We founded Step to help improve the financial future of the next generation and this investment not only validates what we’ve built, but it will also help us continue to innovate and grow with our users.”
Michael Gilroy, General Partner at Coatue, further commented:
“Gen Z is a very passionate and engaged group and they also have an estimated spending power of $75 billion. As this generation continues to mature, they’ve been vocal about the importance of establishing healthy financial habits—with many having lived through two recessions. We’ve invested in Step because we think their game-changing technology and grass-roots approach will help capture the next generation.”
Step added that with the investment round’s funds, it plans to accelerate growth and will continue to expand the team which has doubled in size since the start of the pandemic.