green light, A fintech company that pitches parents on child-friendly bank accounts, has raised $ 260 million in a Series D funding round, doubling its valuation to $ 2.3 billion.
The fund comes just months after the Atlanta-based startup earned $ 215 million in funding at a $ 1.2 billion valuation. With the latest round, Greenlight now surpasses $ 550 million.
Andreessen Horowitz (A16Z) led its Series D, with return backers TTV Capital, Canapi Ventures, Wells Fargo Strategic Capital, Bond, Fin VC, Goodwater Capital as well as new Wellington Management, Owl Ventures and Liontree Partners Were included.
Since it launched its debit cards for children in 2017, the company has succeeded in setting up accounts for more than 3 million parents and children who have saved more than $ 120 million through the app . This is above 2 million parents and children, who saved $ 50 million at the time of its increase in September 2020.
Overall, Greenlight says it has “more than three times” yo revenue, more than doubled the number of parents and children on its platform and doubled the size of its team within the past year.
“The Greenlight family has rapidly emerged as a leader in the finance category,” said David George, general partner of Andreessen Horowitz, who will join Greenlight’s board of directors in a written statement. “Greenlight was created to help parents raise financially smart children, and with a combination of its easy-to-use money management tools and educational resources, the company is one of the most loved and trusted brands for families. Is well positioned to become one of the. World. “
THe presents the company as more than just a debit card, with apps that allow parents to deposit money into accounts and pay for allowances, manage work and how much children can spend, Provide the ability to establish flexible control over it. In January, Greenlight introduced its educational investment platform for children – Greenlight Max. Through that platform, children can research stock with Morningstar’s analysis and actually make real investments in companies such as Apple, Tesla, Microsoft and Amazon as long as their parents approve.
As ClearTips previously reported, It is a potentially large-scale business that can lock in a whole generation to a financial services platform, which is one reason why an entire company has launched with a similar thesis. The US has similar businesses as Curd, Step, Till Financial and Current and has recently launched from Y Combinator to bring the model to Latin America. (Step and Current also announced the big round today, while Till Financial announced its seed round last week. Notably, a16z also led the current pick up).
Greenlight co-founder and CEO Tim Sheehan said, “Our vision at Greenlight is to create a world where every child is financially healthy and happy.” “Today’s funding will enable us to provide even more value to families as we continue to introduce fresh new products that spread the light into the world of money.”
Greenlight says it will use the new capital to add more financial services to its platform to accelerate product development, as well as to further invest in strategic distribution partnerships and geographic expansion. It plans to employ another 300 employees over the next two years with an emphasis on engineers.