Palo Alto-based fintech company Step announced Tuesday that it raised $100 million in fresh financing by way of General Catalyst. The Series C also included participation from a bevy of celebrity investors including The Chainsmokers, Will Smith, Jared Leto, Stephen Curry and TikTok star Charli D’Amelio.
Founded in 2018, Step operates as a banking platform specifically geared toward teenagers. The company has welcomed over one million new users to its platform since its Series B in December.
“Our mission is to help improve the financial futures of the next generation. Thirty-eight percent of teens say they lack the financial resources needed to achieve financial independence and this is a problem Step is well positioned to help solve,” CJ MacDonald, founder and CEO of Step, said in a statement.
The company provides users with a free bank account, spending card and a payments platform that allows them to instantly send and receive money.
“As a parent of three young kids, I know what a critical life skill money management is but it’s hard to know when and how to start talking to them about finances,” investor Curry said in a statement. “Step helps facilitate conversations about money and makes it easy for parents to give their kids a taste of financial freedom with a built-in safety net and lots of teachable moments.”
Step also provides users with the opportunity to start building their credit history prior to turning 18. The credit service is offered with no additional fees, according to the company.
“For too long, conversations about money –– specifically how to manage it –– have been avoided despite what a critical role they play in shaping the future of the next generation,” Leto said in a statement. “I’m excited to see Step addressing the financial literacy crisis head on.”
Following the latest raise, Step plans to continue building out its product infrastructure as well as hire for its team. The company is now hiring for dozens of remote positions spanning nearly every department. A majority of roles are available on the company’s engineering and marketing teams.
Step has raised a total of more than $175 million from investors to date, according to the company.
