NEW YORK — Stash, one of the fastest-growing banking and investing services in the U.S., pioneering the future of personal finance, today announced a raise of $112 million in Series F funding. The round included number-one money marketplace, LendingTree, and funds and accounts advised by T. Rowe Price Associates, Inc., as well as Breyer Capital, Goodwater Capital, Greenspring Associates, Union Square Ventures, Entree Capital, and other investors.
This news follows several major growth milestones. In April, Stash reached over $1B1 in assets under management—fueled by customer deposits of just $28 at a time. Nearly 10 million Stock-Back®2 rewards have been earned by Stash customers since the launch of the debit rewards program almost a year ago. Additionally, in Q1 2020 alone, Stash saw a +100%3 increase in weekly customer deposits across banking and investing, a proof point to the power of the platform even amid recent market volatility and economic downturn.
“We are very fortunate to bring together world class investors, to help accelerate Stash’s goal of bringing digital banking, investing plus financial education and advice to the millions of middle class Americans working hard every day to make ends meet,” said Brandon Krieg, Stash Co-Founder and CEO. “This massive group has attempted to make financial progress within a system that simply does not serve their best interests or meet their needs. It’s time for them to reconsider the current financial services industry as the ‘status-quo’ and take control of their financial life with the customer-obsessed solutions we provide at Stash.”
According to the Federal Reserve’s Annual Economic Wellbeing report, the average American may struggle to just come up with $400 in an emergency. Additionally, per recent Stash research, banking fees cost Americans an average of $364 annually. These statistics not only underscore how widespread America’s savings crisis is, but also further highlight the ways in which traditional financial institutions fail to support the vast majority of Americans’ needs. As Stash continues to provide access to products and customized guidance that empowers millions, this capital raise will support customer growth, brand awareness and further propel the company on its mission to help aspiring middle class Americans achieve financial stability and freedom. Stash offers transparent, flat-fee $1, $3, and $9 monthly subscriptions options that include no-fee brokerage, retirement, custodial, and banking accounts along with a Stock-Back®2 Rewards program that automatically gives Americans fractional shares of stock everywhere they shop.
“We’ve always seen ourselves as a consumer champion—committed to helping people get the most out of their hard-earned money,” said Doug Lebda, Founder and CEO of LendingTree. “Stash’s mission to help Americans achieve financial progress is complementary to ours in every way, and we’ve been impressed with Stash’s speed of execution and commitment to positive customer outcomes. The focus on meaningful financial progress is so relevant, especially in today’s economic environment which has only been amplified by the current pandemic. Giving customers a way to make real strides in achieving financial security is incredibly powerful to our combined missions.”
Stash seamlessly integrates advice and education, personalization, and robust product offerings across investing, banking, saving, budgeting, and more. For further information, please visit: www.stashinvest.com.
Goldman Sachs & Co. LLC acted as exclusive financial advisor and WilmerHale served as legal advisors to Stash.
1Total AUM calculated as of April 20th 2020 across all brokerage accounts including IRAs.
2Stash Stock-Back® is not sponsored or endorsed by Green Dot Bank, Green Dot Corporation, Visa U.S.A, or any of their respective affiliates, and none of the foregoing has any responsibility to fulfill any stock rewards earned by this program. Investment products and services are not offered by Green Dot Bank and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value. This value is defined as the total amount of Stock-Back rewards received by all Stash customers as of April 23rd, 2020.
3Weekly customer deposits during the time period of January 1st 2020 through March 20th, 2020. Withdrawals and fees are not taken into consideration.
This content is for information purposes only. Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. Bank Account Services provided by Green Dot Bank and Stash Visa Debit card issued by Green Dot Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.