Copper, a digital banking service aimed at young people, Teen-focused fintech app Copper raises $29M in a “pre-emptive” Series A round of funding. Fiat Ventures is leading the investment. Approximately seven months have passed since the company announced a $9 million seed round from investors, including Panoramic Ventures, Insight Partners, Invesco Private Capital, and “all present investors.” It has raised $42.3 million since its 2019 inception.
Since its launch in May last year, Copper has grows consumer to over 800,000 users in less than a year. That’s a healthy increase over last year’s October’s 350,000. The company declined to provide its worth or sales figures but did say that the expansion of its user base—which has more than doubled since October 2021—is reflected in its revenue development. Established in Seattle, Copper provides its customers with personalised debit cards, access to 50,000 ATMs, and support for major mobile payment systems, including Apple Pay, Google Pay, and Samsung Pay.
According to the company, Copper enables parents to give money to their children and keep tabs on how the children are spending the money. When they get employment during after-school hours or the summer, teenagers can set up direct deposits for themselves and use peer-to-peer (P2P) transfers to pay their friends with their money. Fintech can help with “financial necessities” such as dividends, budgeting, and compound interest, among other things. Copper has spent the last year getting ready to enter the investment market, and the company is working toward signing up its first customers within the next month. When it comes to expanding their wealth, investors have access to a “wide spectrum” of products, which can include stocks, ETFs, and digital currencies, amongst others.
Eddie Behringer, co-founder and CEO, has said that user feedback was taken into consideration. There is little question that one of the most important factors was young people’s great degree of curiosity. Parents overwhelmingly ranked this as the top benefit they’d like to see us bring to their adolescent children in the form of education when asked about our services. Behringer asserts that the decision was partly made to further the company’s mission to become the “financial first” for America’s kids. This mission was first stated in the company’s mission statement. Furthermore, Copper’s chief executive officer has said that the company will provide “a safe area” for young people to invest in financial markets and cryptocurrencies.
They have seen that minors, despite the best efforts of their parents to keep them out of the financial markets and virtual currencies like bitcoin, can gain access to those markets and those currencies. The issue at hand was primarily one of achieving a balance between overprotective parents and children who have the perception that they have no say in the direction their lives are taking. They knew that younger people would likely use services like Robinhood and others, which generate most of their money from volume trading. They built a product by going opposite to what was expected. Copper asserts that investing through the company provides adolescents a secure environment to learn about investing while enabling parents to have complete visibility into their children’s accounts. In addition, Copper claims that funding through the company allows parents complete access to their children’s accounts.
Many teen-oriented fintech, including Copper, have recently included cryptocurrency in their services. The step is a fintech business that provides financial assistance to teenagers. The company recently introduced a new product that would let its more than 3 million members trade in stocks and cryptocurrencies using their smartphones. In the latter part of the summer, the company plans to launch a brand-new product called Step Investing.