Investment App Stash Raises $37.5M Targeting Financially Underserved Americans
The startup aims to encourage the nearly 50 percent of Americans who don't have enough money to cover a $400 emergency expense start a savings fund.
Stash, the financial platform revolutionizing how millions of Americans invest and save, has raised $37.5 million in series D funding. The round was led by Union Square Ventures, and included existing investors Breyer Capital, Coatue Management, Entree Capital, Goodwater Capital and Valar Ventures.
"The lack of financial security is a rapidly escalating issue in the US. Stash's goal since day one has been to help the masses of underserved Americans jump start their journey towards building a healthy and prosperous future," said Brandon Krieg, cofounder and CEO, Stash. "Through intelligent products and an emphasis on education, we've been able to meaningfully improve the financial lives of nearly two million clients. We're proud of what our customers have accomplished, but we're even more excited for what's ahead."
As the fastest growing consumer investing app in the US, Stash currently serves over 1.7 million clients and 5 million subscribers, with approximately 40,000 new clients joining weekly. The latest release of innovative products and easy-to-use features, including Custodial Accounts, Smart-Save and Stash Coach, help more Americans achieve their dreams of financial security through robust education, data and technology.
Custodial Accounts allow Stash clients to open new investing accounts for minors. Now, adults can use Stash to give the kids they care about financial head starts for education, retirement, or just life in general. Smart-Save helps clients effortlessly save money by studying individual spending and earning patterns to determine when a person has spare cash. Smart-Save then automatically moves a portion of the money into the client's Stash account, where any uninvested cash will be held in an FDIC insured account. Smart-Save is designed to help the nearly 50 percent of Americans who don't have enough money to cover a $400 emergency expense start a savings fund.
Stash Coach provides dynamic recommendations to help clients improve their financial life and maintain a balanced portfolio. Coach encourages and supports a client's journey through challenge, and awards points to clients for accomplishments in saving and investing.
"Through customer focus and a data-driven mindset, Stash has been able to create a powerful consumer brand, with unprecedented growth, on its journey to fix the inequities plaguing financial opportunity across the US. We're excited to join them on this mission to shake up the status quo," said Rebecca Kaden, partner at Union Square Ventures.
Americans paid an astonishing $15 billion in overdraft fees (non-sufficient funds fees/NSF) in 2016, according to the Consumer Financial Protection Bureau, an average of $30-45 for each bounced check or overdraft. In a radical move to help clients keep more of their money, Stash has lowered the ACH reversal fee on Stash accounts to $0.50 for returned deposits.
"Lower fees mean our clients have more money to invest and save. Overdraft fees are outrageous and a real hit to the pocketbooks of everyday Americans. Stash now has one of the lowest ACH reversal fees among consumer investing apps, freeing up more dollars for our investors to build towards their financial futures," said Ed Robinson, cofounder and president, Stash.
Through accessible, intelligent products and fair pricing, Stash has empowered millions of Americans to get smarter about their money. 2018 is poised to be another groundbreaking year, including plans for the aforementioned products, as well as innovative solutions for banking.
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