Banking and investing startup Stash is closing a $125 million Series G funding round led by Eldridge with additional funding from new and existing investors, including Owl Ventures, funds and accounts advised by T. Rowe Price Associates, Inc., Goodwater Capital, Entree Capital and others.
“We believe in tried and tested principles of regular, long-term and balanced investing as the key to building wealth,” Brandon Krieg, CEO and co-founder of Stash, said in a press release on Wednesday (Feb. 3).
Krieg said he and his Co-founders David Ronick and Ed Robinson created Stash to simplify diversified investing “backed by personalized advice” and education, aiming to sidestep “short-term speculation and day trading.” Krieg told CNBC that Stash does not allow margin or options trades, nor does it provide real-time market data, in an effort to discourage day traders.
Stash said that 2020 was a record growth year, and that the New York-headquartered firm now has more than five million customers and $2.5 billion in AUM. Account openings last year went up 100 percent, powered by recurring deposits of $31 at a time.
The platform’s Stock-Back debit card has earned customers close to 23 million stock awards. The company also saw a nearly 50 percent hike in automated investments, which is “a testament to the strength of Stash’s long-term investment philosophy.”
“Stash’s simple, affordable and transparent product offers people a better solution to build wealth for the long term,” said Todd Boehly, chairman and CEO of Eldridge. “The Stash team has achieved remarkable growth and scale.”
In the coming weeks, Stash is planning to roll out Smart Portfolios to help people build long-term, diversified investment holdings. The new solution is intended to assist people with investing when they don’t know where to start.
Following the new funding round, Stash’s valuation is expected to be $1.4 billion, according to sources, per CNBC.
LendingTree invested $80 million in Stash’s Series F funding round in April 2020. At the time, Stash had awarded some 9.5 million fractional stock shares as part of its Stock-Back rewards program.