Step, a banking platform for teens, raised $50M in Series B financing led by Coatue, with participation from a range of known venture capital firms that are returning investors, alongside fintech executives from Visa, Venmo, Square, and Facebook. Celebrity investors include Dreamers VC (led by Will Smith), Tiktok star Charli D’Amelio, Justin Timberlake, The Chainsmokers, Eli Manning, and others.

Why should we care?
Banks and startups are competing for teen wallet share, with tailored offerings, including Greenlight, Current, Cooper, and teen accounts from JPMorgan Chase, and Wells Fargo. While there are some indications Gen Z consumers are interested in personal finance, brands want to build relationships with these consumers early in their lives in the hopes that they’ll stay for the long haul. Step offers fee-free bank accounts in partnership with Evolve Bank & Trust, a debit card and peer-to-peer payments. “We’ve reinvested in Step because not only are their products built specifically for teens but they’ve started an important conversation around financial literacy that kids are actually engaged in,” said Will Smith, in a statement.