Stash, the new application and fintech application that aims to introduce new people in the world of investments, is presenting some new and interesting services while announcing that it has raised more funds to expand its business. The company is introducing bank accounts based on mobile devices from Green Dot Bank; and next to it, a new rewards program is called “Stock-Back”: when users spend money using their Stash In the accounts, they get “points”, which are shares in the companies where they buy products or shares in ETF approved by Stash On top of that, Stash also said he raised a $ 65 million E Series he will use to grow his business on the back of these two releases.
Very interesting numbers…
A spokesman for the company said Stash is not revealing the full round of investors in this round, which is coming “much higher” than the $ 400 million, according to a source. For the context, Stash was valued at $ 350 million post-money in its Series D, according to the figures of PitchBook, which would have put, as a reference, this round at $ 405 million.
But because of its appearance, the $ 65 million seems to include the participation of Breyer Capital, a former investor whose founder Jim Breyer has sincerely supported the new Stock-Back service and the loyalty program that goes with it, which was previously tested with companies . like Netflix, T-Mobile and Chipotle that offer stocks when people used their Stash accounts to pay for goods and services in companies.
“I have invested and served on the Board of many leading companies, and it is clear how a program like Stock-Back can boost immense brand loyalty,” he said in a statement. “The first data show unequivocally that shared ownership drives an increase in sales and customer appreciation. “This new and innovative STASH technology will have CEOs and CMO knocking on their doors”.
Our conclusions
From what we understand, the round was led by a private institutional investor and includes 40 percent of existing investors and 60 percent return. Previous sponsors, in addition to Breyer, include Union Square Ventures, Coatue Management, Entree, Goodwater and Valar. “We are very excited and proud to work with this amazing VC group,” the spokesperson said.
The banking service driven by Green Dot comes with the main characteristics that will sound familiar to those who have used or seen next generation banking services. It will include an account based on a debit card, no overdrafts or monthly maintenance fees, access to a network of ATMs that can be used for free direct deposit services, as well as “personal guidance” for your financial planning activities, from savings until investing
Stash, in this new fintech wave
Stash is part of a wave of fintech. new companies, including Robinhood, Acorns, YieldStreet, Revolut and many others, which have taken advantage of the popularity of applications and the advent of new financial services technology to democratize how people can save, spend, invest, ask borrow and lend money. , moving many of those operations and transactions from the hands of the big incumbents who used to control them.
Who is using Stash?
The average age of a Stash user is 29 years and the average income is less than $ 50,000 per year, and link transactions made with the Stash banking service, through reward points that are obtained incidentally , will make it even easier for these users. take part of your money and invest with it, while at the same time demystifying part of the process and increasing the likelihood that those users choose to invest even more in the line.
The idea of linking investments with what you are really buying is smart. For a startup whose user base includes sound professionals from fields such as teaching, nursing and retail, this is the embodiment of putting your money where your mouth is, literally, since investments can include actions like Chipotle every time buy food there; and T-Mobile each time you pay your telephone bill for everything you talk.
Stash is superimposing the stock incentive with what appears to be an interesting link to rewards and loyalty services, with product discounts of up to five percent in some cases.
“80% of Americans live from check to check. “Stock-Back is our way of using STASH smart technology, patent pending, to help people develop better financial habits and invest in their future,” said co-founder and president, Ed Robinson, in a statement. “Our ability to give clients the opportunity to save and create portfolios that reflect their spending behavior and preferences is incredibly powerful”.
Also published on Medium.