Neobanks focused on the next-generation, including Current, Greenlight, and Step, recently raised $580 million in combined funding across 3 $100 million+ mega-rounds. I sat down with Zach Anderson Pettet on the For Fintech Sake podcast to unpack the trio of deals.See below for highlights from the conversation.
Our conversation covers:
- How to differentiate neobanks targeting Gen Z and millennial consumers
- When to use TikTok and influencers as a customer acquisition strategy
- How to use the product roadmap to remain relevant as customers mature
- Our outlook, the largest neobank targeting younger demographics has captured < 7% of the 47 million households in the US with kids. Well-funded, each has room to capture more of their respective target markets.
Fast funding facts:
Current
- Round: $220 million Series D
- Valuation: $2.2 billion
- Traction: 3 million active users
- Target demographic: Initially launched targeting Gen Z, however, has moved upmarket to serve millennial and mass-market consumers
- Total Funding: $400 million
- Source: Current press release
Greenlight
- Round: $260 million Series D
- Valuation: $2.3 billion
- Traction: 3 million parents and kids on the platform
- Target demographic: Families with kids under 18 years old
- Total Funding: $550 million
- Source: Greenlight press release
Step
- Round: $100 million Series C
- Valuation: Undisclosed
- Traction: 1.5 user accounts
- Target demographic: kids under 18 years old. Step has raised
- Total Funding: $175 million
- Sources: Tech Crunch and Step
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