Step, a digital banking service targeted at teens, has raised $100m in a Series C financing round led by venture capital firm General Catalyst.
Returning investors Coatue, Stripe, Charli D’Amelio, The Chainsmokers, Will Smith and Jeffrey Katzenberg also joined. So did actor and musician Jared Leto along with investment firm Franklin Templeton.
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Step, which has raised over $175m so far, has also formally announced NBA All-Star Stephen Curry as an investor.
The firm will use the infusion to speed up investment in product infrastructure and develop features to help teens budget and save.
Besides, it also plans to hire people to fill in several key positions.
General Catalyst managing director Kyle Doherty will have a seat on the Step board.
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By GlobalDataDoherty said: “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.”
Step founder and CEO CJ MacDonald said: “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.
“Thirty-eight percent of teens say they lack the financial resources needed to achieve financial independence and this is a problem Step is well positioned to help solve as we educate millions of households every day.”
Step offers users access to a free, FDIC insured bank account, spending card and a P2P payments platform for sending and receiving money instantly. It now has over 1.5 million users.
Last December, the firm raised $50m in a Series B funding round.
Led by Coatue, the round saw participation from the company’s existing backers Stripe, Crosslink Capital, Collaborative Fund and Dreamers VC co-founder and American actor Will Smith.
