Mike Novogratz Investment Fund Supports Fintech Startup For Teenagers
Teen oriented fintech startup Current has announced the closing of the $ 20 million investment round.
Today we are excited to announce we've raised $20 million in Series B funding, we have expanded our partnership with Visa and we're now proud to be serving over 500,000 members. Full details: https://t.co/wKYSJTVquD pic.twitter.com/ZfSYL5JPDx
— Current (@current) October 24, 2019
The investment round of the B series was led by the American holding company Wellington Management Group. The company was able to attract funds from the Galaxy EOS VC Fund, founded by the billionaire bank Mike Novogratz Galaxy Digital and the EOS developer Block.One. Current also got funds from the CMFG Ventures and its former investors: QED Investors, Expa and Elizabeth Street Ventures.
At the end of last year, Current accounts received ABA and account numbers. This allowed working teens to get paid directly to the Current account.
In 2019, Current introduced personal settlement accounts. The new mobile application is built on the same technology as the application for teenagers but supports quick direct deposits and payment blocking. Overdraft fees are not charged to settlement accounts, the company declares that there are no hidden fees. You can attach a Visa plastic card to both Current products.
The average age of a user of an account for a teenager is 15 years old. Although personal settlement accounts were launched only at the end of January, they already account for about half of Current accounts.
Fintech Startups Teach Children To Handle Funds
Current is among the first fintech startups to focus on children and teenagers. Such a model is increasingly becoming the basis for successful startups.
For example, in March last year, the American company Greenlight launched smart cards for children and literally in half a year attracted 100 thousand customers. The service allows parents to create a list of places where a child can pay with a card. There is a similar service in Britain - it is called GoHenry. This spring, American startup Zero raised $ 20 million from investors.
Therefore, the startups that target teenagers are also becoming successful.