Micro-investing app Stash announced it has raised an additional $37.5 million in Series D funding to help it achieve its goal of launching a new banking service in 2018.
The round was led by Union Square Ventures, while existing investors Breyer Capital, Coatue Management, Entree Capital, Goodwater Capital and Valar Ventures also participated.
Stash currently serves over 1.7 million clients and 5 million subscribers, with approximately 40,000 new clients joining weekly – making it the fastest-growing app in the U.S. The company aims to help Americans achieve their investment goals, competing with products like Robinhood, Acorn and others.
Most of Stash’s users make under $50,000 per year, and can start building a portfolio with as little as $5. They can even make specific investments that are in line with their beliefs and goals.
“Our clients now have the chance to step off the sidelines, and do this thing they were effectively excluded from for way too long – that’s really what drives us. So many are saying now, ‘I can save,’ ‘I can open a retirement account’ or ‘I can open an investment account,’” said Brandon Krieg, co-founder and CEO of Stash, according to TechCrunch. “Our extension of these products – and the fundraising – offers more accessibility to this huge group of people. We think it’s over 100 million in the U.S. that need this.”
The company has used its funding to continually create new features and products, including Stash Retire, where users can automate investment into both Roth and traditional IRAs with just $15 to start. In addition, there is Smart Save, a savings account product, as well as a coaching system that trains people to become investors by rewarding them with points and advice as they achieve certain steps.
And at some point this year, Stash will launch a new banking service, with accounts held at an undisclosed partner bank.
“We’re going to introduce banking in a different way to our clients,” said Krieg. “There’s the parts of banking that are really important to us: how to help our customers understand their money; understand how they’re spending and saving; and ultimately help our banking clients live better lives.”