Step, the US-based operator of a banking app designed for children, secured $50m on Wednesday in a series B round that included digital payment software provider Stripe.
Investment management firm Coatue led the round, which also featured Crosslink Capital, Collaborative Fund, Dreamers VC and angel investors including Charli D’Amelio, Justin Timberlake, The Chainsmokers, Eli Manning, Larry Fitzgerald and Andre Iguoda.
Founded in 2018, Step provides bank accounts and spending cards tailored for use by teenage and pre-teen customers in addition to a peer-to-peer payment platform.
The startup claims to have signed up 500,000 users since launching its product two months ago and will put the funding towards hiring. Coatue general partner Michael Gilroy is joining its board of directors.
CJ MacDonald, Step’s founder and chief executive officer, said: “Since Step’s launch, we have seen massive demand for this new type of all-in-one banking solution, making it much easier for teens to learn about money management.
“We founded Step to help improve the financial future of the next generation and this investment not only validates what we have built, but it will also help us continue to innovate and grow with our users.”
Stripe led Step’s $22.5m series A round in June 2019, investing with Sesame Ventures, the venture capital vehicle for children’s entertainment producer Sesame Workshop, as well as media holding company WndrCo, Crosslink Capital, Collaborative Fund, Dreamers Fund and various individuals.
Sesame Ventures, Crosslink Capital and Collaborative Fund had previously supplied $3.8m for the company that was disclosed when it emerged from stealth in January 2019.
