Teen Budgeting App Gets $100 Million Investment from Will Smith, Jared Leto
Step, an online financial services company designed for teens and their families, has secured $100 million in Series C funding, led by venture capital firm General Catalyst. Returning investors include global investment manager Coatue, online payment processor Stripe, and celebrity names such as Charli D’Amelio, The Chainsmokers, Will Smith and Jeffrey Katzenberg.
Jared Leto and Franklin Templeton join the list of celebrity investors for this round, while NBA All-star Stephen Curry, who’s supported Step since its early days, officially joins the team as an investor.
Launched less than 6 months ago, the app now has 1.5 million users, and 88% of those say Step is their first bank account. Step offers teens an FDIC-insured bank account, secure spending card, and a P2P payments platform, all with no fees.
“As a parent of three young kids, I know what a critical life skill money management is but it’s hard to know when and how to start talking to them about finances,” said two-time NBA MVP and early Step investor, Stephen Curry. “Step helps facilitate conversations about money and makes it easy for parents to give their kids a taste of financial freedom with a built-in safety net and lots of teachable moments.”
Actor, musician and serial tech investor Jared Leto said, “I’m excited to see Step addressing the financial literacy crisis head on with game-changing technology built to help young people learn about money in their digitally native environments.”
Step intends to use the new round of funding to invest in product infrastructure, adding features that will help teens budget and save in a more intuitive way, says a press release issued by the company. Step also plans to expand its workforce and is hiring for a number of key roles in design, engineering, marketing, finance, operations and more.
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