Stash, a fast-growing investment app for millennials, has raised USD3 million in seed funding to continue the company’s growth. The round was led by Silicon Valley-based Goodwater Capital, which specialises in early-stage consumer technology companies.
Two leading fintech investors also participated in the round: New York-based Valar Ventures, and London-based Entrée Capital; as did previous investors in the company.
Stash is one of the new breed of fintech services aiming to transform the way millennials manage, save and grow their money. This additional funding will support the continued growth and development of the app, including new product features and expansion to the Android platform.
“We’re empowering millennials and new investors to choose where to invest their money, and sharing helpful resources and guidance along the way,” says David Ronick, CEO and co-founder, Stash. “Our goal is to break down the barriers that prevent nearly three quarters of millennials from investing. The support from Goodwater, Valar and Entree will help us reach even more of those new investors and continue to grow our service.”
Stash helps people start investing with as little as USD5, gain investing confidence gradually, and build smart financial habits for the long-term. With Stash, you can choose investments from over 30 Exchange Traded Funds (ETFs) or stocks based on your interests, beliefs and goals, and you can purchase fractional shares to start investing gradually. Investments are described in ways that make them easy to understand, such as “Internet Titans,” (online tech giants), and “Clean and Green” (renewable energy companies). Stash doesn’t charge commissions for buying or selling investments and has a transparent monthly subscription fee of USD1 per month for accounts under USD5,000, with the first three months free; and 0.25 percent a year for balances over USD5,000.
Some of the most popular investment themes Stashers have chosen include Roll with Buffett (NASDAQ: BRK.B), which allows you to invest in Berkshire Hathaway; Delicious Dividends (NASDAQ: SCHD), which invests in companies with a 10-year history of paying dividends; and Defending America (NASDAQ: ITA), which offers exposure to aerospace and defense manufacturers.
“We believe deeply in the Stash mission to bring long-term investing tools and knowledge to millennials,” says Chi-Hua Chien, Co-Founder and Managing Partner of Goodwater Capital. “By lowering the minimum level of investment, enabling millennials to invest in broad themes that they care about, and guiding them along the path toward building smart lifelong investment habits, Stash has the potential to empower an entire generation to reach their financial goals.”
