Following a Record Year and $2.5B in AUM, Stash Raises $125M to Fuel Continued Growth

New Series G funding will help millions more Americans invest for the long term

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Feb 03, 2021, 12:40 ET

NEW YORK, Feb. 3, 2021 /PRNewswire/ -- Stash, the finance app that helps everyday Americans build diversified investment portfolios, today announced $125 million in Series G funding, following a year of record growth in 2020.

"We believe in tried and tested principles of regular, long-term, and balanced investing as the key to building wealth. We therefore built Stash to make diversified investing easy, affordable and accessible, backed by personalized advice and accessible education—in order to avoid the pitfalls of short-term speculation and day-trading," said Brandon Krieg, CEO and Co-Founder of Stash. "This new round of funding enables us to take this mission to millions more Americans."

2020 was a record growth year for Stash. With upwards of five million customers¹ and $2.5 billion in AUM,² Stash saw a 100% increase in account openings in the last year³, fueled by automated and recurring deposits of just $31 at a time.⁴ Additionally, customers have earned nearly 23 million stock awards via Stash's Stock-Back® Card—a debit card that rewards customers with pieces of stock, enabling them to invest as they spend.⁵The company also saw an increase of approximately 50% in the number of customers automating their investments to help better navigate last year's market volatility—a testament to the strength of Stash's long-term investment philosophy.⁶

"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, who led the round, 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. "The Stash team has achieved remarkable growth and scale. We are excited to support them as they continue to grow and build more tools to help Americans build diversified investment portfolios."

Stash continues to challenge the status quo by making long-term investing even easier and more affordable. The company is always adding new products and features to the platform and is actively growing the team to meet increased demand. In the coming weeks, Stash will launch Smart Portfolios,⁷ allowing customers to build long-term, diversified portfolios that are fully managed by Stash. The new offering—built for the millions of Americans who want to invest, but don't know where to start—aims to further help customers avoid the risks of day-trading. Unlike other institutions, Stash will not charge fees based on portfolio size. Instead, Smart Portfolios will be available to customers as part of Stash's Growth and Plus subscription plans, starting at $3/mo.⁸Additionally, Stash offers a personalized diversification tool to help customers maintain balanced portfolios based on their risk profile.

About Stash
Stash is a personal finance app that helps make investing easy and affordable for millions of Americans. Starting at just $1 a month,⁸ Stash's subscription plans are designed to help anyone build wealth, hit financial goals, and invest in themselves. Each plan includes access to investment accounts, no-hidden-fee banking⁹ with the Stock-Back® Card,¹⁰ budgeting and saving tools, personalized guidance, and more. For further information, visit www.stash.com.

About Eldridge
Eldridge invests in businesses across the Insurance, Credit, Technology, Real Estate, Sports, Media, and Consumer landscapes. The firm seeks to build and grow businesses led by proven management teams that have demonstrated leadership and experience to scale an enterprise. Eldridge is headquartered in Greenwich, Connecticut, with additional offices in Beverly Hills, New York, and London. To learn more about Eldridge, please visit www.eldridge.com.

Media Contact
For Stash:
Vera Hanson
[email protected]

For Eldridge:
Nadia Damouni
[email protected]
646.818.9217

¹As of January 5, 2021. This is not an endorsement or a statement of satisfaction by any Stash client and is defined by the number of clients who have e-signed.
²Total AUM calculated as of January 5, 2021, across all brokerage accounts including IRAs.
³As of January 7, 2021. The growth rate represents the comparison of users who signed up in 2020 with the users who signed up in 2019.
⁴This calculation takes the total sum of completed transfers via Set-Schedule for all Stash clients as of January 1, 2020 through December 31, 2020. This calculation includes transfers completed through Set-Schedule for taxable brokerage accounts, custodial accounts, and IRAs. This calculation does not take withdrawals into consideration.
⁵This value is defined as the total amount of stock-back rewards received by all Stash customers as of January 5, 2021. This value does not take withdrawals into consideration.
⁶This percentage calculation takes the total sum of completed transfers via SmartStash, Roundups and Set-Schedule for all Stash clients as of January 1, 2020 through January 5, 2021. This calculation includes transfers completed through Set-Schedule for taxable brokerage accounts and IRAs. This calculation does not take withdrawals into consideration.
⁷This type of account is a Discretionary Managed Account. This is an individual taxable brokerage account that Stash has full authority to manage according to a specific investment mandate.
⁸Stash Monthly Wrap Fee starts at $1/ month. You'll also bear the standard fees and expenses reflected in the pricing of the ETFs in your account, plus fees for various ancillary services charged by Stash and the Custodian. Please see the Advisory Agreement for details. Other fees apply to the bank account. Please see the Deposit Account Agreement. Stash offers three plans, starting at just $1/month. For more information on each plan, visit our pricing page.
⁹Other fees apply to the bank account. Please see the Deposit Account Agreement for details. If applicable, your Stash banking account is a funding account for purposes of the Advisory Agreement. Your Stash subscription fee may be deducted from your Stash banking account balance.
¹⁰All rewards earned through use of the Stash Visa Debit card (Stock-Back® Card) will be fulfilled by Stash Investments LLC. Rewards will go to your Stash personal investment account, which is not FDIC insured. You will bear the standard fees and expenses reflected in the pricing of the investments that you earn, plus fees for various ancillary services charged by Stash. Stash Stock-Back® Rewards is not sponsored or endorsed by Green Dot Bank, Green Dot Corporation, Visa U.S.A., or any of their respective affiliates.

Stash through the "Diversification Analysis" feature does not rebalance portfolios or otherwise manage the Personal Portfolio Account for Clients on a discretionary basis.

Stash does not offer an interest-bearing savings account.

Bank Account Services provided by and Stash Visa Debit Card (Stock-Back® Card) issued by Green Dot Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Visa is a registered trademark of Visa International Service Association. Stash Banking Account opening is subject to identity verification by Green Dot Bank. Investment products and services provided by Stash Investments LLC, not Green Dot Bank, and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.

Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. Investing involves risk and investments may lose value. For more information, please visit www.stash.com.

SOURCE Stash