Step Secures $300m Fund, Introduces Crypto Investment Platform for Young Adults
Digital banking service Step has secured $300 million in new debt funding round, which coincided with the company’s launch of a crypto investment platform aimed at minors and young adults - their key clientele.
The banking platform's funding round was led by Triplepoint Capital and Evolve Bank & Trust, the company said.
According to the company, minors and young adults can only use the new crypto investment platform with the consent of a parent or legal guardian to buy and sell bitcoin, with additional stocks and cryptocurrencies to join the platform soon.
Alongside the new platform, Step also introduced Money 101 - a financial literacy program - a six-lesson course that spans the banking sector to cryptocurrency investing.
According to The Block, with the funding secured, Step’s raise now totals $500 million, including debt and equity financing, from investors such as Crosslink Capital, Stripe, Coatue, General Catalyst, Triplepoint Capital, Charli D’Amelio, Stephen Curry, Justin Timberlake, Will Smith, The Chainsmokers, Alex Rodriguez, and others.
Step previously, in April 2021, closed a $100 million round of Series C funding after growing to more than 1.5 million users just six months after launch.
The round was led by General Catalyst, which came shortly after Step’s $50 million Series B.
Step is competing in a crowded market of mobile banking services aimed at a younger demographic, but it’s one of very few that targets teenagers ages 13 to 18.
According to the company, Step's app allows teens access to an FDIC-insured bank account without fees and a secured Visa card that helps them establish credit before they turn 18.
The app also offers Venmo-like functionality for sending money to friends.
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