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Insights

Lindsay Davis Apr 30, 2021 3 min read

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.

https://open.spotify.com/episode/549C1wdknZmNAfenTuXaps?si=hP2DTxZqRw20U2I2kGdwxw&nd=1

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 
  • SourceCurrent 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
  • SourceGreenlight 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

Where to subscribe

You can also listen to this episode of the For Fintech Sake podcast on Spotify and Apple Podcasts. We are looking to iterate on the format so please reach out or leave a review with your feedback.

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