Teen banking app Step has raked in $50m in Series B funding round that was joined by celebrities such as singer Justin Timberlake.
Led by Coatue, the funding round also saw participation from the company’s existing backers Stripe, Crosslink Capital, Collaborative Fund and Dreamers VC co-founder and American actor Will Smith.
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Other celebrities who joined the round include Charli D’Amelio, The Chainsmokers, Eli Manning, Kelvin Beachum, Larry Fitzgerald, and Andre Iguodala.
Step has also added fintech executives from Facebook, Square, Venmo, Visa and others as its investors.
The latest funding round brings the total amount raised by the company to date to $75m.
Launched on 30 September 2020, the no-fee banking app for teenagers onboarded more than 500,000 users on its platform.
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By GlobalDataIt provides users with a free, FDIC-insured bank account, Visa card and a P2P payments platform for sending and receiving money instantly.
Additionally, it offers teenagers a Step Card to help them start building credit, without charging any fees.
Step said it will use the fresh investment to continue expanding its team and bolster its growth.
Step founder and CEO CJ MacDonald said: “Since Step’s launch, we have 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 have built, but it will also help us continue to innovate and grow with our users.”
Dreamers VC co-founder Will Smith said: “We have reinvested in Step because not only are their products built specifically for teens, but they have started an important conversation around financial literacy that kids are actually engaged in.”
Coatue general partner Michael Gilroy said: “We have invested in Step because we think their game-changing technology and grass-roots approach will help capture the next generation.”
Charli D’Amelio said: “As a Step partner and customer, I have been able to see first-hand how easy Step makes it to manage your money while providing the educational resources that today’s teens need but have largely been unable to find—myself included.”
