Celebrities-Backed Step, Banking Platform For Teens, Secures $300 Million In Debt Funding.
Step, a banking platform for teenagers and young adults, has acquired $300 million in fresh debt financing.
According to a press release by Step, Triplepoint Capital and Evolve Bank & Trust led the investment round. The funding round announcement came at the same time as the company unveiled a cryptocurrency investment platform geared toward minors and young adults.
Step provides secure Visa cards to enable those under the age of 18 establish credit. With the approval of a parent or legal guardian, these individuals will be able to buy and sell bitcoin, and Step expects more stocks and cryptocurrencies to soon join the platform.
“Gen Z is the generation of creators, entrepreneurs and investors. They are redefining norms and taking control of their financial futures earlier in life thanks to products like Step,” said Jim Labe, Co-Chief Executive Officer at Triplepoint Capital. “We are excited to partner with the Step team to continue scaling the business to millions of financially-savvy teens and young adults.”
Customers can earn rewards in cryptocurrencies (and soon equities) in addition to the investment platform when they use their Step Visa Card at their preferred retailers, including restaurants, clothes stores, streaming services, and more. The previously introduced Step cashback rewards platform has been expanded by this.
Additionally, the business unveiled Money 101, a six-lesson course that covers everything from investing in cryptocurrencies to the banking industry, according to Step. This is a six-lesson financial literacy program designed to help students and parents nationwide learn the foundations of modern banking.
“In less than two years, we’ve been able to help more than 3 million customers establish a strong financial foundation and begin to think about their long-term goals,” said CJ MacDonald, Founder and CEO of Step. “We’re thrilled to be able to offer teens and young adults the ability to build credit, budget, spend, save, earn and now invest in their financial futures directly within the Step App.”
With their lastest funding, Step has now raised $500 million from investors including Crosslink Capital, Stripe, Coatue, General Catalyst, Triplepoint Capital, Charli D’Amelio, Stephen Curry, Justin Timberlake, Will Smith, The Chainsmokers, Alex Rodriguez, and others. This sum includes debt financing as well as equity financing.