Disclosure NewswireTMiCrowdNewswire - Feb 13, 2018
Series D Funding Comes on the Heels of Massive Customer Growth and New Products
Stash Cuts Overdraft Fees by 98% to Eliminate Financial Burden on Customers
NEW YORK, — Stash, the financial platform revolutionizing how millions of Americans invest and save, today announced it 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 U.S. 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, Co-founder 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 U.S., 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. Details include:
- Rolling out this week, 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.* With a client-first approach, Smart-Save will never initiate a transfer when a client’s checking account balance is low, ensuring a healthy account minimum is always maintained. Additionally, clients can withdraw their funds at any time with no fee. Smart-Save is designed to help the nearly 50% of Americans who don’t have enough money to cover a $400emergency 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 U.S. 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, Co-founder 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.
Stash is on a mission to provide all Americans with the education, tools and guidance needed to unlock their own financial opportunity. Stash simplifies and optimizes the way customers spend, save and invest their money. Clients of the Invest suite of products can choose from a selection of over 40 curated ETFs to build personalized portfolios that reflect their investing interests and beliefs, as well as savings goals. Based in New York City, Stash launched in October 2015 by Wall Street veterans, Brandon Krieg and Ed Robinson.
Neither Stash nor any of its subsidiaries is a bank or FDIC-insured U.S. depository institution. Securities offered by Stash Investments LLC through Apex Clearing Corporation, Member FINRA, SIPC. This service is available for U.S. citizens, U.S. permanent residents, and certain U.S. visa holders. Investments available through Stash Investments LLC: Not FDIC Insured • No Bank Guarantee • May Lose Value. See our disclosures page for more information.
*Interest is earned through an Federal Deposit Insurance Corporation (FDIC) insured Sweep Program offered by Apex Clearing Corp. Uninvested cash is eligible for insurance protection through the FDIC up to the maximum applicable insurance limits. For more information, please read the Apex FDIC Sweep Program Terms and Conditions.