Investing App Stash Raises $146 Million

Investing App Stash Raises $146 Million
  • Investing app Stash has raised $146 million in Series H funding. The oversubscribed round was led by Goodwater Capital.
  • Stash will use the funds to drive subscriber growth, accelerate product innovation, and enhance the firm’s AI capabilities.
  • Founded in 2015, New York-based Stash made its Finovate debut at FinovateFall 2017.

Investing platform Stash secured $146 million in Series H funding. The oversubscribed round was led by Goodwater Capital and featured participation from existing investors Union Square Ventures, StepStone Group, Serengeti, and the University of Illinois Foundation. Funds and accounts advised by T. Rowe Price Investment Management, Inc, were also involved in the round.

The investment will help the New York-based fintech bring its financial guidance to a broader range of customers and boost the firm’s investment in AI to enhance its advisory capabilities.

“This new funding is a resounding vote of confidence in Stash’s vision for the future of personal finance,” Stash Co-Founder and Co-CEO Ed Robinson said. “For a decade, Stash has helped millions take control of their financial futures. Now, we’re doubling down—transforming how people save, invest, and build long-term wealth with AI-powered intelligence at the core. We’re just getting started.”

The centerpiece of Stash’s growth strategy is Money Coach AI, the company’s advanced financial guidance platform. Money Coach AI converts investing strategies into real-time, personalized recommendations for investors. Stash reports that the offering already has 2.2 million users who have put Money Coach AI to work helping select their first investments, generating personalized diversification suggestions, and more. Further, Stash notes that one in four Money Coach AI customers have taken proactive steps—making an investment, depositing funds, diversifying, or initiating Auto-Stash automatic payments—within 10 minutes of interaction with the platform.

“For too long, financial advice has been out of reach for everyday people. Stash’s mission has always been to change that,” Co-Founder and Co-CEO Brandon Krieg said. “Now, by leveraging the power of AI, Stash is helping people take control of their money, understand their options, build real wealth, and secure their financial future, no matter where they’re starting from.”

Celebrating its 10-year anniversary this year, Stash made its Finovate debut at FinovateFall 2017. At the conference, the company unveiled its low-fee, self-directed Roth IRA accounts as part of its Stash Retire offering. Today, Stash has 1.3 million paying subscribers and $4.3 billion in assets under management. The company’s funding announcement follows the launch of its Learn & Earn initiative, which offers users short, actionable financial lessons combined with stock rewards and personalized next-step guidance. Stash also reported recently that the platform has added the AIS ETF from Jon McNeill and Adam Patti VistaShares. The exchange-traded fund provides exposure to 80 public stocks that reflect the entire AI supply chain, from chip manufacturers and data centers to storage and high-voltage electrical equipment providers.

“For our community of Stashers this means participating in the AI revolution the Stash way—regularly investing small amounts into a diversified portfolio for long-term growth,” Krieg noted in a LinkedIn post last month. “Tech advances should create opportunities for all of us, not just the privileged few. The AIS ETF is one other way we’re making that happen, letting our community build wealth by being part of the AI supercycle.”


Photo by Yashowardhan Singh on Unsplash

Fintech Rundown: A Rapid Review of Weekly News

Fintech Rundown: A Rapid Review of Weekly News

Between FinovateSpring taking place in San Diego and a busy news cycle, last week was a blur. Let’s see what this week has in store! We’ll continue adding news to this post throughout the week, so stay tuned!


Digital banking

Digital banking solutions provider Apiture teams up with Cornerstone Advisors to help financial institutions use data more strategically.

Caro Federal Credit Union partners with Tyfone to Enhance Digital Experience.

Byline Bank expands payments and fintech banking group to support embedded payment solutions.

Payments

Paysafe and Fiserv announce partnership expansion and initiatives to empower small and medium-sized businesses.

Blackhawk Network selects Coforge and ServiceNow to help with digitalizing and streamlining their dispute resolution management.

Ramp and Stripe deepen partnership to accelerate global commerce through stablecoin-backed cards.

Regulation

CFPB to withdraw 67 guidance documents.

Investing and wealth management

Investing app Stash secures $146 million in Series H funding in a round led by Goodwater Capital.

Eton Advisors enhances rebalancing and trading with intelliflo redblack.

Mortgagetech / Proptech

Egypt-based Nawy, the largest proptech in Africa, raises $52 million in Series A funding, as well as an additional $23 million in debt financing.

Financial literacy

Responsible lender Creditspring teams up with financial education platform Doshi.

DeFi / Crypto

US-based BitGo secures EU crypto custody license.

New Hampshire establishes Strategic Bitcoin Reserve, the first state in the US to do so.

Bhutan teams up with Binance and DK Bank to introduce a new nation-wide crypto payments system for tourists.

Dubai Finance inks a Memorandum of Understanding with Crypto.com to facilitate the payment of government services fees using cryptocurrencies.

Lending and Credit

Collections and credit risk management technology company AKUVO announces new partnerships with Sunrise Banks.

The Roof Resource partners with Further, a Union Credit company, to bring credit union financing at point of sale.

Security and identity

Oregon State Credit Union partners with Illuma to deploy IllumaSHIELD voice authentication technology.

Plaid rolls out major upgrades to its Identity Verification (IDV) product.


Stash Secures $40 Million in New Funding, Introduces First Independent Audit Chair

Stash Secures $40 Million in New Funding, Introduces First Independent Audit Chair
  • Investment app Stash announced a $40 million investment on Friday. The investment was led by T. Rowe Price Investment Management.
  • The New York-based company also announced that former New York Stock Exchange CFO Amy Butte was joining the company as its first-ever independent audit chair.
  • Stash made its Finovate debut in 2017 at FinovateFall.

Finishing the week with a bang is investment app Stash, which announced a new $40 million investment and first-ever independent audit chair on Friday.

The investment comes courtesy of T. Rowe Rice Investment Management, as well as a combination of strategic and existing investors including Goodwater Capital and Union Square Ventures. The first-ever independent audit chair comes courtesy of former NYSE Chief Financial Officer Amy Butte.

“The addition of Amy, who is amongst the most accomplished leaders in the financial services space, plus a new round of financing from marquee investors, are clear indicators of the strength of Stash’s business,” Stash CEO Liza Landsman said. “It also signals our widely ambitious future.”

A recognized leader in financial services, Butte has taken companies public as a director, advisor, and CFO, including the IPO of the New York Stock Exchange. Butte currently sits on the boards of Bain Capital Specialty Finance and DigitalOcean, and served on the boards of BNP Paribas and Fidelity Strategic Advisers Funds for seven and six years, respectively. In a statement, Butte underscored Stash’s unique approach to helping individuals get started on the road to investing.

“(Stash) is not a tool – it is a business,” Butte said. “It is not simply replicating a traditional workflow online. Rather, it is encouraging and teaching an underrepresented (traditionally ignored) customer segment about the value of investing through a subscription model. It is leveraging technology to make finance both accessible and also understandable.”

A Finovate alum since 2017, Stash offers an investing app that helps users build long-term wealth. With automated investment plans starting as low as $3 a month, Stash helps users build diversified investment Smart Portfolios – that offer exposure to stocks, ETFs, and even cryptocurrencies. Stash also offers personalized investment advice, automated recurring investing, and dividend reinvestments. Stash’s “Stock-Back” debit card solution enables users to earn up to 3% back in stock from regular purchases like gas and groceries.

In the past year alone, Stash has topped $100 million in annual revenue and now includes two million active subscribers on its platform. These subscribers have set aside nearly $3 billion due to regular, automated deposits averaging just $33.

Stash’s fundraising news comes just a few months after the company introduced new Chief Technology Officer Chien-Liang Chou, as well as launched its Internal Developer Portal (IDP), Elevate. Headquartered in New York, Stash was founded in 2015.


Photo by Steven Arenas

Stash Introduces New CEO Liza Landsman

Stash Introduces New CEO Liza Landsman
  • Investing and savings platform Stash introduced new CEO Liza Landsman.
  • Landsman will take the helm from co-founder Brandon Krieg, who will transition into the role of Head of Business Development.
  • Stash made its Finovate debut at FinovateFall 2017 in New York.

Investing and savings platform Stash is starting the month with a brand new Chief Executive Officer. Effective Monday, technology executive, veteran venture investor, and independent Stash board member Liza Landsman took over the top spot at the New York-based fintech. Landsman succeeds Stash co-founder Brandon Krieg, who will transition into the role of Head of Business Development. Co-founder Ed Robinson will continue to serve as company President.

“Liza is the right person to lead Stash as we continue to hit major revenue and customer milestones and evolve the business,” Krieg said. “Her experience and knowledge of consumer products, e-commerce, and fintech is ideally suited to the opportunities ahead.”

With more than two million active subscribers, Stash offers a banking and investing app designed to simplify personal financial management. With a starting price of $3 a month, the company offers a variety of investing, banking, education, and financial advice subscription-based products. Last year, Stash launched its new banking infrastructure Stash Core, that will enable the company to launch new capabilities in credit, savings, lending, and more. Stash’s new banking account experience – which includes access to Stash’s upgraded Stock-Back Debit Mastercard – was built on Stash Core, and is an example of the kind of solutions that will be available via the platform.

“Stash Core gives us flexibility and ownership of every customer touchpoint,” Krieg said when the technology was unveiled last September. “It’s the future of inclusive finance and transformative to our business.”

In her role as CEO, Landsman will lead a company that topped $100 million in revenue and achieved growth of nearly 30% in 2022. At a time of economic uncertainty – including concerns over inflation and fears of recession – Stash customers set aside nearly $3 billion on the Stash platform via regular, automated deposits averaging $30 each.

“Stash empowers millions of Americans to manage and grow their wealth,” Landsman said. “Its simple-yet-disruptive subscription platform, rooted in a deep commitment to the financial well-being of our customers, is exactly what millions of everyday Americans need today.”

Landsman comes to Stash after serving in major operations and leadership roles at Jet.com, Citigroup, BlackRock, and E*Trade. Most recently Landsman was a General Partner at global venture capital firm NEA.


Photo by Kampus Production

Stash Launches its New Infrastructure Platform, Stash Core

Stash Launches its New Infrastructure Platform, Stash Core
  • Investing and banking services fintech Stash unveiled its new infrastructure platform, Stash Core, this week.
  • Stash’s new banking account experience is the first new solution built on Stash Core. Credit, savings, and lending solutions are expected to be launched in the future.
  • Stash Core features integrations from a wide number of partners including fellow Finovate alums Mastercard, Marqeta, Mambu, and Alloy.

With its latest innovation, investing and banking company Stash is bringing to market a new proprietary infrastructure platform, Stash Core. The offering supports Stash’s new banking account experience now, and will enable new capabilities in credit, savings, and lending in the future.

“Stash Core gives us flexibility and ownership of every customer touchpoint,” Stash co-founder and CEO Brandon Krieg said. “It’s the future of inclusive finance and transformative to our business.”

Stash’s new banking account experience is built on the Stash Core and provides access to an upgraded Stock-Back Debit Mastercard, enhanced customer support, and benefits such as increased rewards. Stash’s Stock-Back Debit Mastercard gives cardholders the ability to invest in stocks every time they spend on gas, groceries, travel, dining, and more. The company notes that it has provided more than 59 million stock rewards to date and, going forward, will allow cardholders to earn up to 4x more with their new upgraded cards.

“With Stash Core and the Stock-Back Debit Mastercard, we are able to deliver the very best in financial tooling, customer service, and AI-powered, personalized wealth-building for those who want to earn stock and invest as they spend,” Krieg said.

Teased at FinovateFall in New York earlier this month, Stash’s new solution benefits from integrations with Mastercard, Stride Bank, Marqeta, Mambu, Alloy, and others. In an extended blog post, the Stash team described the decision-making that went into the development of Stash Core. The discussion highlighted the importance of building an infrastructure that would enable Stash to “more quickly innovate and introduce new products and services faster” to provide the best possible customer experience.

With more than two million customers and nearly $3 billion in assets under management, Stash helps individuals embark upon their investing journey with as little as $3 per month. Offering a suite of financial products ranging from investing and banking to education and advice, Stash reports that its members are 18% more financially literate than the average American. The company experienced $125 million in annualized revenue in the past year, and announced that weekly contributions have climbed by 30% over the past two years.

Founded in 2015, Stash made its Finovate debut at FinovateFall 2017. In the years since then, the company has secured more than $347 million in funding, forged partnerships with companies from Apex Clearing to the San Francisco 49ers National Football League team, and acquired financial literacy app, PayGrade.


Photo by Pixabay

Investment App Stash Grabs Financial Literacy Platform PayGrade

Investment App Stash Grabs Financial Literacy Platform PayGrade

Along with the fanfare surrounding so-called meme stocks and the “power of the individual trader” last year, there was a dark side. Investing and trading platforms that had embraced gamification were being accused of not fully preparing their customers for the dangers involved in stock trading – especially in volatile, illiquid stocks. Critics demanded that these platforms spend more time – and money, if necessary – educating their customers for their own benefit as well as for the good of the investing and trading industry, which has recovered impressively since the dot.com bust 20 years ago.

This is the spirit in which we take the news that Stash, a New York-based, mobile-first investment platform that made its Finovate debut in 2017, has acquired financial literacy platform PayGrade. The terms of the deal were not disclosed, but the acquisition marks Stash’s first acquisition and its biggest fintech news headline since a whopping $125 million Series G fundraising back in February.

Brandon Kreig, CEO and co-founder of Stash said that the acquisition was an example of the company’s mission to “empower everyday Americans to invest for the future.” He noted that personal finance education is not emphasized in American schools – with 43 out of 50 states not requiring coursework in personal financial management – and that an overwhelming number of American adults – as much as 80% – live “paycheck to paycheck.”

“With PayGrade,” Kreig explained, “Stash will provide teachers, parents, and children with interactive tools to learn effective money management skills that will last a lifetime.”

Stash enables users to begin investing on its platform with as little as $1 a month. The company’s “Stash Beginner” program allows investing – including fractional share investing – as well as banking, portfolio recommendations, savings strategies, and a Stock-Back card that helps users earn stock every time they use the card for shopping. Stash also offers Growth and Plus plans that add features such as portfolios for children, premium research, and enhanced bonuses for using the Stash Stock-Back card.

Purchasing PayGrade is not the only way that Stash will support the cause of financial literacy this year. Stash’s acquisition news arrived just a few days before the company announced that it was partnering with the Suh Family Foundation and the Big Yard Foundation to launch a financial literacy program over the summer. Dubbed the Stash101 Summer School, the program will be conducted in partnership with Portland Public Schools and will give 160 middle school students an introduction to vital money management and wealth building.

“From investing and banking to education and retirement planning, we believe everyone has the power to achieve greater financial freedom—one step at a time.” Krieg said. “We’re thrilled to deepen our commitment to childhood education through Stash101 and this special summer school program in Portland with the Suhs and Big Yard. It’s going to be a tremendous four weeks for the kids.”

Stash101 is part of the Portland Interscholastic League Trajectory Math Program, which provides additional learning resources for historically underserved students. The course will include a simulated economy experience in which the students will complete tasks like renting desks, while earning a salary and learning about the difference between savings and credit. The classes will be held between July 6 and July 27 at a pair of schools in the Portland School system.


Photo by Anna Nekrashevich from Pexels

Stash Raises $125 Million

Stash Raises $125 Million

Investment platform Stash announced a new round of financing today. The $125 million Series G round boosts the company’s total funding to over $427 million.

Eldridge led the round, which received additional funding from new and existing investors, including Owl Ventures, funds advised by T. Rowe Price Associates, Goodwater Capital, Entree Capital, and others.

The funding comes after a year of record growth for Stash, which was founded in 2015. Last year, the New York-based company saw a 100% increase in account openings. It now has five million customers and $2.5 billion in assets under management. Fueling this increase was the boost in automated deposits; Stash reported a 50% increase in the number of customers automating their investments last year.

Stash’s investment platform democratizes long-term investing by making the process easier and more affordable. “We believe in tried and tested principles of regular, long-term, and balanced investing as the key to building wealth. We therefore built Stash to make diversified investing easy, affordable and accessible, backed by personalized advice and accessible education—in order to avoid the pitfalls of short-term speculation and day-trading,” said Stash Co-Founder and CEO Brandon Krieg. “This new round of funding enables us to take this mission to millions more Americans.”

Stash’s newest upcoming product, Smart Portfolios, helps customers build long-term, diversified portfolios that are fully managed by Stash. The new offering is made for users who want to invest, but don’t know where to start. To keep things simple, Stash uses a subscription model instead of charging fees based on portfolio size. The Smart Portfolios product is included in Stash’s Growth and Plus subscription plans, which cost $3 per month and $9 per month, respectively.


Photo by Michael Dziedzic on Unsplash

Finovate Alums Take Top Honors at Lendit Fintech Awards

Finovate Alums Take Top Honors at Lendit Fintech Awards

Lendit Fintech announced the winners of its fourth annual Lendit Finitech Industry Awards this week. And out of the 500+ entries competing for awards in 13 different categories, Finovate alums left the stage with nearly half of them.

Taking the highest honor as Fintech Innovator of the Year was Stash. The New York-based mobile-first investment platform made its Finovate debut at FinovateFall 2017, demonstrating its Stash Retire solution. This year marks the second year in a row that Stash has picked up Lendit’s top prize in this category. Fellow Finovate alum Marqeta was among the category’s finalists.

Also winning award categories were:

  • Plaid for Innovations in Digital Banking
  • Urjanet and Equifax for Most Promising Partnership
  • Visa for Top Service Provider
  • Blend for Top Technology Service Provider.
  • CircleUp for Top Small Business Lending Platform

“Our purpose at Lendit Fintech is to elevate and celebrate the achievements of others,” co-founder and CEO of Lendit Fintech Bo Brustkern explained in a statement. “This year has been a hard year for many bank and fintechs, and the many enterprises that support them. Now more than ever we need a reason to come together – even if it’s virtually – to recognize and applaud excellence in these circumstances.”

Other companies earning awards were Upstart for Top Consumer Lending Platform, PeerStreet for Top Real Estate Platform, BlockFi for Emerging Lending Platform of the Year, Orrick for Top Law Firm, and Branch for Excellence in Financial Inclusion. Two individuals were also recognized: Colin Walsh, founder and CEO of Varo Money, as Executive of the Year and Nicky Goulimis, COO and co-founder of Nova Credit, as Fintech Woman of the Year.

A number of other Finovate alums earned finalist spots in this year’s competition. Both Lending Club and SoFi competed as finalists in the Consumer Lending Platform category. And BlueVine provided a strong Finovate alum showing in the Small Business Lending Platform group.

Credit is also due to Finovate alum Mambu as a finalist (along with Stash) in the Innovations in Digital Banking category, and to both Finicity and Ocrolus, which competed in the finals of the Top Technology Service Provider category.


Photo by Ylanite Koppens from Pexels

Micro Investment Platform Stash Secures $112 Million

Micro Investment Platform Stash Secures $112 Million
Photo by Burak K from Pexels

In a round featuring participation from LendingTree and T. Rowe Price, personal finance and investing app Stash has locked in $112 million in Series F funding. The round, which also involved existing investors Union Square Ventures, Breyer Capital, Goodwater Capital, and Greenspring Associates, gives the company $300+ million in total capital and boosts the firm’s valuation to more than $800 million.

“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,” company CEO Brandon Krieg said.

Stash’s $112 million fundraising arrives just over a year after the company’s last financing – a $65 million Series E led by an unnamed, private investor. That investment also accompanied the launch of Stash’s Stock-Back rewards program that gives users fractional shares of stock when they use their Stash debit card for qualified purchases at publicly-held companies like Amazon and Chipotle.

Stash offers a mobile-first, micro-investment and PFM solution that enables investors to build a portfolio starting with as little as $5. Users can invest in both stocks and funds without having to pay add-on trading fees, as well as make fractional share investments with smaller dollar amounts. In addition to being an investment platform, Stash also provides online banking services including an early paycheck feature for those who set up direct deposit, a Stash debit card, and no overdraft, monthly maintenance, or minimum balance fees. Billpay, mobile check deposit, and PFM functionality are also part of the platform.

Stash provides users with three tiered plans with monthly costs of $1, $3, and $9. The company’s premium offering, Stash+, provides two additional investing accounts for youth, and a metal card with double Stock-Back rewards, as well as the platform’s standard features.

The funding announcement also comes on the heels of a major milestone reached by the company earlier this year. In February, Stash reported that it topped $1 billion in assets under management on its platform. What’s all the more remarkable about this accomplishment is that the average per customer deposit at Stash is just $28.

“(Middle class Americans have) attempted to make financial progress within a system that simply does not serve their best interests or meet their needs,” Krieg said. “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.”

With more than four million members – 86% of whom are first-time investors – STASH demonstrated its technology at FinovateFall in 2017. The company is headquartered in New York City.

Finovate Alumni News

On Finovate.com

  • BlueVine and GovQuote Team Up to Fund SMEs.
  • Bpm’online Focuses on Customization, Clean Data in Latest Update.

Around the web

  • Sberbank Croatia chooses Token for PSD2 compliance.
  • Silicon Canals highlights Meniga in its list of 10 Cool Icelandic Tech Startups to Work for in 2019.
  • MX wins a 2019 Utah Genius award.
  • U.Today features Stash and Crealogix in its roundup of Top 12 FinTech Companies to Watch in 2019.
  • Xignite earns spot on the WealthTech 100.
  • Lendio franchise opens in Erie to expand access to capital for local businesses
  • InComm’s Alder API wins award from the Innovative Payments Association.
  • BioCatch’s behavioral biometrics-based digital identity solution now available on the ForgeRock Marketplace.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Stash Scores $65 Million; Launches Stock-Back Rewards

Stash Scores $65 Million; Launches Stock-Back Rewards

With the stock market in rally mode and up significantly from the Christmas Eve lows, micro-investing fintech startup Stash is celebrating the occasion with a $65 million fundraising.

The Series E was led by an unnamed private institutional investor and featured participation from current investors including Union Square Ventures and Breyer Capital. The new capital takes Stash’s total funding to $181.3 million. The company said it will use it to drive product growth as well as marketing.

Stash also announced this week that it was launching a new rewards program, leveraging its Stash debit card, that will provide users with fractional shares of stock whenever qualified purchases at publicly-held companies are made. The Stock-Back rewards program gives consumers a micro-investment in companies like Amazon and Chipotle every time they shop using the Stash card. For privately-held companies that do not have stock available, consumers will get their Stock-Back rewards in the form of fractional shares in a broad-based, global equity exchange-traded fund (ETF).

“During the testing period, we saw an overwhelming positive response from users as they pay ordinary bills like Netflix, and in returned received Netflix stock as well as access to dividends, educational resources and financial advice,” Stash co-founder and president Ed Robinson said.

Stash demonstrated the Stash Retire feature of its mobile-first, micro-investing platform at FinovateFall 2017. Stash Retire offers users a low-fee, self-directed Roth IRA account that can be invested in for as little as $100 to start. Users of Stash Retire can take advantage of all of the options available in their Stash Invest accounts, such as auto-invest and $5 investment minimums.

Named to the Forbes Fintech 50 last month and honored by the FinTech Breakthrough Awards in the Best Robo Advisory Platform category last spring, Stash was founded in 2015 and is headquartered in New York City.

Finovate Alumni News

On Finovate.com

  • Stash Scores $65 Million; Launches Stock-Back Rewards.
  • TickSmith Teams Up with CanDeal to Power DataVault Innovations.
  • First Wave of Demoing Companies for FinovateSpring Revealed.

Around the web

  • Aerospike launches suite of add-on modules, Aerospike Connect, to make it easier for businesses to integrate the company’s database.
  • Identitii renews its partnership with HSBC Global Services (UK).
  • Onfido appointed to the FIDO Alliance Board of Directors.
  • ACI Worldwide announces the extension of its partnership with South Africa’s Capitec Bank.
  • IdentityMind Global to support Koi Trading’s AML Compliance-as-a-Service offering.
  • Gusto appoints Square’s former Head of Information Security Fredrick Lee as its new Chief Security Officer.
  • PayPal adds instant transfer feature for bank accounts.
  • Insuritas and ReliaQuote partner to offer ID theft protection to 10 million consumers.
  • Fenergo enables financial firms to digitally visualize risk in fight against financial crime.
  • GroundFloor partners with Dwolla to make payments more efficient for borrowers and investors.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.