New York-based mobile investment startup Stash, cofounded by Australian Ed Robinson, has today announced the closing of a US$25 million Series B round led by Valar Ventures.
With participation from Breyer Capital, Goodwater Capital, and Entrée Capital, the fresh funding comes just after a US$9.25 million Series A round raised in August and a seed round in February.
Launched in October 2015, the startup has created a micro-investing app targeted at millennials, allowing them to start by investing as little as $5. Unlike robo-investment platforms which automate the whole investment process, however, Stash wants to help millennials become financially literate and engage with their investment.
As well as breaking down the jargon, Stash allows users to choose from a range of Exchange Traded Funds (ETFs) selected by its team; the user is then encouraged to build their portfolio by choosing investments that reflect not only their goals and tolerance for risk, but their interests and beliefs, too.
Since launch, the startup has grown to serve over 300,000 customers, up from 150,000 in August; the company stated it is currently adding 10,000 new users each week.
The idea for Stash came to Robinson and Brandon Krieg, cofounder and CEO, while working together on Wall Street with Macquarie Group.
“Ed and I saw that traditional financial services make it difficult for people to start. The investing world is often viewed as confusing, expensive, and intimidating,” Krieg wrote in a blog post.
“We knew there was something fundamentally wrong with this picture, and we hoped Stash would be part of the solution…we want to create real change, the kind that transforms the financial literacy gap and narrows the vast division of wealth that plagues our country.”
Krieg said their goal is to break down the barriers to investing by promoting financial literacy, helping people develop smarter financial habits, and empowering those who have been underserved by the financial services industry.
With the fresh funding, Krieg said the team will look to reach more customers and expand its financial education services.
Stash has stated that international expansion is on the to do list; however, with the startup defining its addressable market in the US as 100 million consumers, there is more work to be done locally before it looks overseas.
Image: Brandon Krieg and Ed Robinson. Source: Supplied.