- Banking and investment services company Stash announced it raised $112 million in Series F funding and over $1 billion in AUM
Stash, a rapidly growing banking and investment services company, announced it has raised $112 million in Series F funding. This funding round included LendingTree and funds and accounts advised by T. Rowe Price Associates as well as Breyer Capital, Goodwater Capital, Greenspring Associates, Union Square Ventures, Entree Capital, and other investors.
This news comes on the heels of other major growth milestones for the company. For example, the company hit over $1 billion in assets under management. This was fueled by customer deposits of just $28 at a time. And nearly 10 million Stock-Back rewards have been earned by Stash customers since the launch of the debit rewards program almost a year ago. Plus Stash saw more than a 100% increase in weekly customer deposits across banking and investing in Q1 2020 alone.
The Federal Reserve’s Annual Economic Wellbeing report reports that the average American may struggle to just come up with $400 in an emergency. And Stash’s research suggests banking fees cost Americans an average of $364 annually.
These statistics only underscores 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. And 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 is known for offering flat-fee $1, $3, and $9 monthly subscription options that include no-fee brokerage, retirement, custodial, and banking accounts along with a Stock-Back Rewards program that automatically gives Americans fractional shares of stock everywhere they shop. And Stash seamlessly integrates advice and education, personalization, and product offerings across investing, banking, saving, budgeting, and more.
Goldman Sachs & Co. LLC acted as exclusive financial advisor and WilmerHale served as legal advisors to Stash.
“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. 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.”
-Brandon Krieg, Stash Co-Founder and CEO
“We’ve always seen ourselves as a consumer champion—committed to helping people get the most out of their hard-earned money. 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.”
-Doug Lebda, Founder and CEO of LendingTree
“We are very proud of the corporate development track record at LendingTree. We have made nine acquisitions since 2016, and the resulting diversification puts us in a unique position to now move aggressively to the asset side for consumers. Although this is our first strategic investment of this type, we believe our expertise will make us a great partner on the strategic investment front. LendingTree and Stash will work together to help millions of consumers. Their savings and investing products will resonate with our consumer base, and we’ll bring them the most comprehensive marketplace for financial solutions, so Stash customers can afford more and protect their futures.”
-J.D. Moriarty, LendingTree’s Chief Financial Officer