Fintech startup and app that aims to introduce new people to the investment world are unveiling some interesting new services while also announcing that they have raised more funding to expand their business. The company is introducing Green Dot Bank mobile banking accounts and a new reward program called “Stock – Back” alongside it. When users spend money using their Stash accounts, they get “points” — either stocks in the firms they buy goods, or shares in Stash – approved ETFs. In addition, Stash also said it raised a $ 65 million Series E that it will use on the back of these two launches to grow its business.
A company spokesperson said that in this round, Stash is not disclosing the entire round of investors. For context, according to figures from PitchBook, Stash has been valued at $350 million post-money in its Series D, and a source says the valuation is now “much higher” than a straight upround.
But from its perspective, the $ 65 million seems to include Breyer Capital’s participation, A former investor whose founder, Jim Breyer, warmly endorsed the new Stock – Back service and its associated loyalty program, Early tested with companies such as Netflix, T – Mobile and Chipotle, all offering stock when people used their Stash accounts to pay for goods and services in their companies.
“I’ve invested in and served on the board of many leading firms, and it’s clear how a program like Stock – Back can boost huge brand loyalty,” He said in today’s statement. “The early data clearly shows that share ownership leads to increased sales and appreciation of customers. This innovative new STASH technology will knock on its door to CEOs and CMOs.”
The round was led by a private institutional investor from what we understand, and includes existing 40 percent and new investors 60 percent. Former backers include Union Square Ventures, Coatue Management, Entree, Goodwater and Valar in addition to Breyer. “We are really excited and proud to work with this amazing group of VCs,” noted the spokesman.
The Green Dot – powered banking service provides the core features that will sound familiar to those who have previously used or looked at banking services of the next generation. It will include a debit card – based account, no overdraft or monthly maintenance fees, access to a network of ATMs that can be used for free and direct deposit services, and “personal guidance” from saving to investment for their financial planning activities.
Stash is part of a wave of fintech start – ups — others include the likes of Robinhood, Acorns, YieldStreet, Revolut and many more — that came across the popularity of Apps and the advent of new financial services technology to democratize how individuals can save, spend, invest, borrow and lend money, removing many of these transactions and transactions from the hands of the major players who used to control them.
A Stash user’s average age is 29 and average income is less than $ 50,000 per year and linked to transactions made using Stash’s banking service — as a reward Points that are incidentally picked up — will make it even more seamless for these users to take some of their money and invest with it, while simultaneously demystifying some of the process and making it more likely that those users will choose to invest even more on the line.
It’s a clever idea to tie investments to what you’re actually buying. For a startup whose user base includes no – nonsense professionals from fields such as teaching, nursing and retail, this is the embodiment of putting your money where your mouth is — literally, because the investments can include things like Chipotle shares every time you do it. Buy food and T – Mobile every time you’re paying your telephone bill for everything you’re talking to.
Stash places Stock – Back as a reward program, with percentages varying by business or brand and in some cases going up to five percent in Stock – Back — as is the case at launch when people use their Stash debit cards to pay their Spotify and Netflix duties.
Ultimately, this is aimed at presenting a way for ordinary, modestly – salaried people not only to potentially make money, but also to be more involved in how financial systems work and how their daily actions impact that — the idea being that this knowledge can only help them in the long run.
“Living paycheck-to-paycheck is 80% of Americans. Stock-Back is our way to use the smart, patent-pending technology from STASH to help people build better financial habits and invest in their future,” said Ed Robinson, co-founder and president in a statement. “Our ability to give customers an incredibly powerful opportunity to save and construct portfolios that reflect their spending behavior and preferences.”