Digital Bank Greenlight Raises US $260 Million, Doubles Valuation to US $2.3 Billion

April 29, 2021
Connor Cassidy

Atlanta-based fintech company Greenlight, which pitches parents on kid-friendly bank accounts, has raised US $260 million in a Series D funding round that nearly doubles its valuation to $2.3 billion. This new round of funding comes just months after they had landed US $215 million at a US $1.2 billion valuation. Since its inception in 2014, they have raised a total of US $550 million!

Andreessen Horowitz led its Series D, as others such as TTV Capital, Canapi Ventures, Wells Fargo Strategic Capital, BOND, Fin VC and Goodwater Capital returned to grab more equity, as well as new investors such as Wellington Management, Owl Ventures and LionTree Partners.

Back in 2017 when Greenlight launched its debit cards for kids, the company has accumulated more than 3 million parents and children, who have cumulatively saved more than US $120 million! Since September of 2020, when Greenlight last taped the funding-raising market, they have added over a million new accounts and 70 million in savings! Overall, Greenlight says it has “more than tripled” YoY revenue, more than doubled the number of parents and kids on its platform and doubled the size of its team within the past year.

“Greenlight has quickly emerged as a leader in the family finance category,” said Andreessen Horowitz general partner David George, who will join Greenlight’s board of directors, in a written statement. “Greenlight was built to help parents raise financially smart kids, and with its breakthrough combination of easy-to-use money management tools and educational resources, the company is well-positioned to become one of the most loved and trusted brands for families around the world.”

Greenlight pitches itself as more than just a digital bank that offers debit cards and savings accounts. They allow parents the ability to deposit money in accounts and pay for allowance, manage chores, and set flexible controls on how much kids can spend. Also, back in January of this year, Greenlight introduced Greenlight Max which is an educational platform to teach kids about investing. Through this new initiative, kids can research stocks and analyze them through Morningstar and, with parent approval, make investments in Apple, Tesla, and more!

“Our vision at Greenlight is to create a world where every child grows up to be financially healthy and happy,” said Tim Sheehan, co-founder and CEO of Greenlight. “As families spent more time at home together than ever, many took this as an opportunity to teach their kids about money and we saw increased demand for our product.”

Greenlight will use the funding to increase the speed of product development, which means more research and development as well as hiring more employees. As of this writing, the company has 275 employees and plans on expanding that number by another 300.

 

Reference:

 

Azevedo, Mary Ann. “TechCrunch Is Now a Part of Verizon Media.” Tech Crunch, 27 Apr. 2021, techcrunch.com/2021/04/27/kids-focused-fintech-greenlight-raises-260m-in-a16z-led-series-d-nearly-doubles-valuation-to-2-3b.

 

Leave a comment