fintech app copper
Copper, a digital banking service aimed at teens, has raised $29 million in Series A funding in a “preemptive” round led by Fiat Ventures.
The investment comes just over seven months after the startup revealed it had raised $9 million in a seed round, and included participation from Panoramic Ventures, Insight Partners, Invesco Private Capital, and “all existing investors,” according to the company. It has now raised a total of $42.3 million since its 2019 inception.
Since its launch last May, Copper has grown to have more than 800,000 users. That’s up from 350,000 last October. While the company would not reveal its valuation or hard revenue figures, it did say that its revenue growth is in line with its user growth, which — as noted above — has more than doubled since October 2021.
Seattle-based Copper offers features such as personalized debit cards, access to 50,000 ATMs, and support for digital wallets like Apple Pay, Google Pay, and Samsung Pay.
Parents use Copper to send money to teens and monitor their teens’ spending, the company touts. Teens can do things like setting up direct-deposit for after-school and summer jobs and pay friends using P2P transfers. The fintech also offers tips on what it describes as “finance fundamentals” such as dividends, budgeting, and compound interest.
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Over the last year, Copper has been gearing up to expand into investing, with plans to onboard its first group of customers within the next month. The startup aims to give its customers the ability to direct funds from their accounts into a “wide range” of investments — from stocks to mutual funds to cryptocurrency. The move was in part based on demand from its users, according to CEO and co-founder Eddie Behringer.
“It was really driven by a tremendous amount of demand from teens. And then when we asked parents about it, this was the one financial topic that they assigned the highest value — as far as us being able to provide their teens’ access, and then really the education behind that access,” he told TechCrunch.
Investing through Copper, the company claims, gives teens a supervised setting where they “can learn as they invest, and where parents can see where every dollar is going.”
Copper is among several teen-focused fintechs that have recently expanded their offerings to include a crypto component. Step, a Series C fintech app providing banking services to teenagers, recently announced that it would be offering a new product that will enable its 3 million-plus users to invest in equities and cryptocurrencies on its app. The company plans to launch the new product, Step Investing, sometime early this summer.
fintech app copper