Step — the FinTech startup helping families give their teenagers financial freedom — just closed its $22.5 million Series A funding round with the help of Will Smith’s Dreamers Fund and rapper, Nas.
The funding round was ultimately led by Stripe, the payments software company; however, Crosslink Capital and Collaborative Fund also contributed.
“The response from consumers after our launch has been both exciting and overwhelming,”Step CEO, CJ MacDonald, said. “In full transparency, we were not set up for or expecting the response that we received.”
Step provides no-fee banking services to teenagers who are growing up in an increasingly cashless world. The company is also partnering with Mastercard, Evolve Bank & Trust and Stripe to create a debit card for teens and an app for families. Step’s bank accounts are securely held, and FDIC insured through Evolve Bank & Trust.
“Our goal for this round is to invest in people, technology and product to bring our vision to life,” MacDonald said in blog post.
Step has received 500,000 sign-ups to its waitlist since its first announcement in January. Now the company is working to bring its product to life and help more teens learn the ins and outs of personal finance and banking.
