Stash, the fast-growing investment and financial education app targeting beginner American investors, has raised $40 million in Series C funding. The round was led by Coatue Management and existing investors Breyer Capital, Goodwater Capital and Valar Ventures.
This latest funding round rides on the heels of a $25 million Series B and a $10 million Series A in December and August 2016, respectively. The New York-based company has raised a total of $78 million in less than two years and claims to currently service over 850,000 accounts, with approximately 25,000 new customers joining its platform every week.
Stash was launched to empower and educate a new generation of investors and make investing easier and more accessible for American consumers who have limited access to financial opportunity. With as little as $5, the app allows users to invest in “high-quality funds in a safe and secure way, guided by smart, simple and effective strategies they’ll use for life”.
Users aren’t charged trading commissions or fees for transferring money in and out of accounts, but will have to pay a fee of $1 per month for accounts under $5,000 and 0.25% a year for balances over $5,000.
Brandon Krieg, CEO and co-founder of Stash, said:
“When it comes to investing, too many Americans are standing on the sidelines because they’re unsure where and how to begin. Stash is the only investment platform focused on educating and empowering beginner investors. For too long, the financial services industry only made investing accessible to the rich, but at Stash, we believe anyone can become an effective investor with the right tools and education.”
Philippe Laffont, Coatue’s founder and portfolio manager, added:
“Stash is disrupting the financial services industry by removing barriers and making investing more approachable and accessible to the 100 million-plus Americans on the sidelines. Its rapid growth in a short period of time shows that Stash has found a way to transform how Americans manage their money and gain financial independence.”
The new funding will accelerate Stash’s investments in technology and data analytics, allowing the business to serve its growing community with more personalisation, educational tools and new products. Stash Retire, a simplified retirement app, is scheduled to launch this summer for iOS and Android.