Total amount raised
$491.3 Millions
Latest funding date
10/1/2022
Location
Step has successfully raised significant funding over multiple rounds, attracting a diverse group of investors. The platform offers a secured Visa credit card aimed at helping users build their credit while providing additional financial tools and benefits.
Keep reading to explore the intricacies of Step's fundraising journey and the investors backing this innovative financial technology platform.
What Is Step?
Step, founded in 2018 by Alexey Kalinichenko and CJ MacDonald, is a financial technology company based in Palo Alto, California. The company focuses on building mobile-based banking solutions specifically designed for teenagers, aiming to help them achieve financial independence and knowledge.
Step offers a secured Visa credit card that helps users build credit while providing additional benefits like cashback on purchases and a high savings rate. The platform is designed to give its users the tools to become smarter with money and rewards them along their financial journey.
With a team of 101-250 employees, Step continues to innovate in the financial services sector, providing essential tools and resources for the younger generation to manage their finances effectively.
How Much Funding Has Step Raised?
- Seed Round
- Amount Raised: $3.8M
- Date: January 2019
- Lead Investors: Crosslink Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the development of their mobile-based banking solutions for teenagers.
- Series A
- Amount Raised: $22.5M
- Date: June 2019
- Lead Investors: Stripe
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand their product offerings and scale their operations.
- Series B
- Amount Raised: $50M
- Date: December 2020
- Lead Investors: Coatue
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance their financial products and increase user acquisition.
- Debt Financing
- Amount Raised: $15M
- Date: February 2021
- Lead Investors: Bridge Bank
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operational costs and product development.
- Series C
- Amount Raised: $100M
- Date: April 2021
- Lead Investors: General Catalyst
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and expand their market reach.
- Debt Financing
- Amount Raised: $300M
- Date: October 2022
- Lead Investors: Evolve Bank & Trust, TriplePoint Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth, launch crypto investing solutions, and enhance product infrastructure.
Total Amount Raised: $491.3M. Current Valuation: Not publicly disclosed.
Key Investors
- TriplePoint Capital
- Details: TriplePoint Capital is a leading global financing provider for venture capital-backed companies. They specialize in providing debt financing to high-growth startups.
- Investment Focus Areas: Venture capital, growth capital, debt financing for technology companies.
- Notable Investments: Not specified.
- Evolve Bank & Trust
- Details: Evolve Bank & Trust is a financial services organization offering banking, trust, and mortgage services. They are known for providing banking services to various fintech companies.
- Investment Focus Areas: Banking, financial services.
- Notable Investments: Not specified.
- Coatue
- Details: Coatue is a global technology-focused investment firm. They invest in both public and private companies across various sectors.
- Investment Focus Areas: Technology, media, telecommunications.
- Notable Investments: Snap, Spotify, ByteDance.
- General Catalyst
- Details: General Catalyst is a venture capital firm that invests in companies driving powerful, positive change. They focus on early-stage and growth equity investments.
- Investment Focus Areas: Technology, innovation, various sectors.
- Notable Investments: Airbnb, Stripe, Snap.
- Stripe
- Details: Stripe is a technology company that builds economic infrastructure for the internet. They provide payment processing solutions and financial infrastructure for businesses.
- Investment Focus Areas: Financial technology, economic infrastructure.
- Notable Investments: Shopify, Lyft.
What's Next for Step?
Step is poised to capitalize on the burgeoning interest in financial solutions tailored for younger generations. With $300 million in new debt funding, the company plans to accelerate growth by launching crypto investing options and enhancing its product infrastructure. The introduction of the "Money 101" financial literacy program in over 100 high schools underscores Step's commitment to educating the next generation about modern banking and investing.
Future fundraising opportunities seem promising, given the substantial backing from prominent investors like Triplepoint Capital and Evolve Bank & Trust. As Step continues to expand its offerings, additional rounds of venture capital or debt financing could be on the horizon to support further innovation and market penetration.
However, the path forward is not without challenges. Regulatory hurdles, especially concerning crypto investing for minors, and competition from other fintech companies could pose significant obstacles. Ensuring the security and trust of a young user base will be crucial as Step navigates these complexities.
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