Why Gen Z and millennial-focused neobanks are raising $100 million+ mega-rounds
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:
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