Step, a San Francisco, CA-based financial services company built for teens and families, raised $50m in Series B funding.
The round was led by Coatue, with participation from returning investors Stripe, Crosslink Capital, Collaborative Fund and Will Smith’s Dreamers VC and new investors Charli D’Amelio, Justin Timberlake, The Chainsmokers, Eli Manning, Kelvin Beachum, Larry Fitzgerald and Andre Iguodala alongside prominent fintech executives from the likes of Facebook, Square, Venmo, Visa and others. In conjunction with the deal, Michael Gilroy of Coatue joined Step’s board.
The company, which has raised more than $75m to date, intends to use the funds to expand operations and its business reach.
Founded by financial industry veterans CJ MacDonald and Alexey Kalinichenko, Step offers users a free, FDIC insured bank account, secured spending card backed by Visa and P2P payments platform so teens can send and receive money instantly. Additionally, the app does not charge fees of any kind and enables teens to start building credit earlier by using their Step Card. The company’s financial products are powered by its bank partner Evolve Bank & Trust, Member FDIC and insured up to $250,000.
Launched just two months ago, Step has over 500,000 users on the platform.