Financial services marketplace LendingTree led a $112m series F round for Stash, the US-based operator of an online finance and investment platform, on Wednesday.
The round’s other participants included Breyer Capital, Goodwater Capital, Greenspring Associates, Union Square Ventures (USV) and funds and accounts advised by T. Rowe Price. The cash was raised at a valuation of more than $800m, people familiar with the matter told Bloomberg.
Stash operates an online platform with more than 4.5 million users that combines a personal investment and banking account with personal finance advice. It also allows users to receive payments immediately instead of waiting two days for them to clear.
Brandon Krieg, Stash’s CEO, told Bloomberg: “The money is going to be mostly used to support customer growth and building up brand awareness, especially during this really scary time with Covid-19. We want to help Americans achieve financial freedom.”
BofA Securities advised LendingTree on the deal while Goldman Sachs did the same for Stash. LendingTree’s contribution to the round was an $80m investment in February this year, and Stash has now raised approximately $292m since it was founded in 2015.
The company received $65m in series E funding from unnamed investors that likely included Breyer Capital in March 2019, having secured $37.5m in a February 2018 round led by USV and backed by Breyer Capital, Coatue Management, Entree Capital, Goodwater Capital and Valar Ventures.
Coatue Management had previously led Stash’s $40m series C round in 2017, investing alongside Breyer Capital, Goodwater Capital and Valar Ventures.
The latter three had joined Entrée Capital in its $25m series B round in December 2016, four months after a $9.25m series A co-led by Goodwater Capital and Valar Ventures that included Entrée Capital, and 10 months after $3m in seed capital from the same three investors.
LendingTree’s founder and chief executive, Doug Lebda, said: “Stash’s mission to help Americans achieve financial progress is complementary to ours in every way, and we have been impressed with Stash’s speed of execution and commitment to positive customer outcomes.
“The focus on meaningful financial progress is so relevant, especially in today’s economic environment which has only been amplified by the current pandemic. Giving customers a way to make real strides in achieving financial security is incredibly powerful to our combined missions.”
