Step Raises $100m in Series C Round

“Gen Z is flocking to modern financial solutions that can be easily embedded within their digital lives and Step has a unique model for how to do this right,” said Kyle Doherty, Managing Director at General Catalyst, who will also join Step’s board. “The team has built the elusive offering that teens want and families need, which has been validated by their incredible growth and market momentum.”

A recent Step survey revealed that 97% of teens think financial literacy is important but have largely turned their backs on traditional banks after being repeatedly underestimated and overlooked by these institutions. Instead, Gen Z is prioritizing fintechs, and say they’re looking for a financial partner that is trustworthy (34%), built for teens (26%) and fee-free (24%).

“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,” said Jared Leto, legendary actor, musician and serial tech investor. “Over twenty years ago, I set out to tackle this problem by starting a company in the space, so I’m excited to see Step addressing the financial literacy crisis head on with game-changing technology built to help young people learn about money in their digitally native environments.”

While Step has made great strides in helping to educate the next generation to be smarter with their money, they’ve also helped normalize conversations about personal finances among families. The company regularly publishes content on its website to arm parents with the tools they need to tackle these important discussions. Parents point to Step’s fee-free model and commitment to financial education as some of their favorite benefits of using the app.

“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,” said 2x NBA MVP and early Step investor, Stephen Curry. “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.”

With this new round of funding, Step plans to accelerate investment in product infrastructure, building innovative products and features that help teens budget and save in a more intuitive way. The company will also be hiring for a number of key roles as it looks to continue closing the financial literacy gap and empower the next generation to be smarter with their money.