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Teen banking app Step secures $300m in debt funding

Source: Step

Step, the all-in-one financial solution for the next generation, announced up to $300 million in debt funding led by Triplepoint Capital and Evolve Bank & Trust. The new funding brings the total capital raised by Step to $500M.

With this new round of funding, Step will accelerate investments in product infrastructure and continue to bring ground-breaking financial products to the next generation. Step is the first platform to allow people under the age of 18 to build a positive credit history with their own secure Step Visa Card, opening doors to better terms and more comprehensive financial products earlier in adulthood.

“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.”

In addition to this new funding, today, Step launched crypto investing. With this new offering, Step becomes the first platform to allow teens, with the consent of a parent or legal guardian, to responsibly participate first-hand in the rapidly evolving investing landscape, starting with buying and selling bitcoin. Stocks and other cryptocurrencies will be added to the platform soon.

Alongside the investing platform, customers can accrue rewards in cryptocurrency (and soon stocks) when they shop with their Step Visa Card at their favorite merchants – restaurants, clothing stores, streaming services and more. This is an expansion of Step’s recently launched cashback rewards platform.

"The next generation is hungry for modern financial products that streamline their day to day,” said CJ MacDonald, Founder and CEO at Step. “We are excited about the progress we have made over the past year and the new products that are launching today.”

To ensure the next generation is prepared for their financial futures, Step also unveiled Money 101 – a six-lesson financial literacy program designed to help students and parents nationwide learn the foundations of modern banking. From understanding how banks work to investing in stocks and cryptocurrencies, Money 101 is available to all and is now being taught in over 100 high schools across the country. Users everywhere can jumpstart their financial journey today at step.com/education

“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.”

To date, Step has raised over $500M in equity and debt financing from Crosslink Capital, Stripe, Coatue, General Catalyst, Triplepoint Capital, Charli D’Amelio, Stephen Curry, Justin Timberlake, Will Smith, The Chainsmokers, Alex Rodriguez, and several other prominent investors. 

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