Total amount raised
$491.3 Million
Latest funding date
10/1/2022
Location
Step has successfully raised funding over six rounds, with the latest being a Debt Financing round. The platform is backed by 36 investors, including notable names like TriplePoint Capital and Evolve Bank & Trust.
Keep reading to explore the intricacies of Step's fundraising journey and the investors backing this innovative financial services platform.
What Is Step?
Step is a financial services company that builds mobile-based banking solutions for teenagers. Based in Palo Alto, California, the company operates in the FinTech industry, focusing on apps, banking, finance, and financial services. With a workforce of 101-250 employees, Step has made significant strides in the financial technology sector.
Founded to provide a comprehensive money management app, Step offers features like EarlyPay, credit building, savings, direct deposit, rewards, and investing. The platform aims to help users manage their finances effectively, build credit, and access cash when needed, promoting financial independence and literacy.
How Much Funding Has Step Raised?
- Seed Round
- Amount Raised: USD 3,800,000
- Date: January 2019
- Lead Investors: Crosslink Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial product and launch the platform.
- Series A
- Amount Raised: USD 22,500,000
- Date: June 2019
- Lead Investors: Stripe
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and expand the user base.
- Series B
- Amount Raised: USD 50,000,000
- Date: December 2020
- Lead Investors: Coatue
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance product features and increase market penetration.
- Debt Financing
- Amount Raised: USD 15,000,000
- Date: February 2021
- Lead Investors: Bridge Bank
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operations and product development.
- Series C
- Amount Raised: USD 100,000,000
- Date: April 2021
- Lead Investors: General Catalyst
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and attract high-profile investors.
- Debt Financing
- Amount Raised: USD 300,000,000
- Date: October 2022
- Lead Investors: TriplePoint Capital, Evolve Bank & Trust
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate investments in product infrastructure and launch new features like crypto investing.
Total Amount Raised: USD 491,300,000. Current Valuation: Not publicly disclosed.
Key Investors
- TriplePoint Capital
- Details: TriplePoint Capital is a leading global financing provider devoted to serving venture capital-backed companies. They offer debt financing to help companies grow and scale.
- Investment Focus Areas: Venture debt, growth capital, technology.
- Notable Investments: Facebook, YouTube, LinkedIn.
- Evolve Bank & Trust
- Details: Evolve Bank & Trust offers a range of banking services, including commercial and consumer banking, mortgage, and trust services. They are known for their innovative financial solutions.
- Investment Focus Areas: Banking, financial services, mortgage.
- Notable Investments: Not publicly disclosed.
- General Catalyst
- Details: General Catalyst is a venture capital firm that invests in early-stage and growth-stage companies. They focus on creating powerful, positive change that endures.
- Investment Focus Areas: Technology, healthcare, consumer products.
- Notable Investments: Airbnb, Stripe, Warby Parker.
- Coatue
- Details: Coatue is a global investment manager focused on public and private companies in the technology, media, and telecommunications sectors. They are known for their strategic investments in high-growth companies.
- Investment Focus Areas: Technology, media, telecommunications.
- Notable Investments: Snap, DoorDash, ByteDance.
- Stripe
- Details: Stripe is a technology company that builds economic infrastructure for the internet. They provide payment processing software and APIs for e-commerce and other online businesses.
- Investment Focus Areas: FinTech, payment processing, economic infrastructure.
- Notable Investments: Shopify, Lyft, Instacart.
What's Next for Step?
Step is poised to capitalize on significant opportunities, including the expansion of its financial services to younger consumers and the introduction of crypto investing options. With $300 million in new debt funding, the company aims to enhance its product infrastructure and broaden its offerings, such as the Money 101 financial literacy program. These initiatives align with industry trends that emphasize financial education and modern financial products for Gen Z.
Future fundraising opportunities appear promising, given the substantial capital already raised and the involvement of high-profile investors. Step may seek additional funding rounds to further expand its product offerings and market reach. However, the company will need to navigate regulatory challenges related to crypto investments and maintain its competitive edge in a crowded fintech market.
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