Venture Capital: Step, The Teen And Young Adult-Focused Digital Bank, Raises $300M Debt Round

October 12, 2022 | FinTech, News

The new funding brings the total capital raised by Step to $500M.

Step, the digital bank focused on Gen Z, announced up to $300 million in debt funding led by Triplepoint Capital and Evolve Bank & Trust. It 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, enabling them to secure better terms and more comprehensive financial products as they mature to adulthood. Step will use the funding to accelerate growth, launch crypto investing and a national financial literacy curriculum. (Businesswire)

Simultaneously with the funding, Step announced that teens, with the consent of a parent or legal guardian, could participate on buying and selling bitcoin on the platform. Step intends to add stocks and other cryptocurrencies soon. When using their Step Visa Card card for shopping, customers can accrue rewards in cryptocurrency (and soon stocks) through the Step cashback rewards platform.

Step has now raised to date 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.

“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 in a statement. “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.”

“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.

Related Story: Balance Money, A Fintech, Launches Digital Banking

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