Step, a U.S.-based financial services company built for teens and families, announced on Tuesday it raised $100 million through its Series C investment round, which was led by General Catalyst, with participation from returning investors Coatue, Stripe, Charli D’Amelio, The Chainsmokers’ Mantis VC, Will Smith’s Dreamers VC and Jeffrey Katzenberg’s firm WndrCo. The company also revealed it now has 1.5 million users less than six months in market.
As previously reported, 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.
“It isn’t easy learning about money. Schools don’t teach you and families don’t always talk about finances. Traditional banks make it even harder to get ahead by charging fees for standard services like checking accounts, atm’s and even spending cards. Our mission is to create a bank that gives you the tools to become smarter with your money and reward you along your financial journey. Step gives you a free bank account with zero fees. Track your balance and see your transactions 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 for inviting your friends to Step.”
To date, Step has raised more than $175 million from investors and continues to deliver explosive growth, adding more than one million new users since its $50 million round in December 2020. Speaking about the company’s development, CJ MacDonald, Founder and CEO at Step, stated:
“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 went on to add with this new round of funding, it plans to accelerate investment in product infrastructure, building innovative products and features that help teens budget and save in a more intuitive way.