Seattle-based teen banking app Copper has raised a $29 million Series A round.
With the round, announced Tuesday, Copper has now raised $42.3 million total. The new funding comes less than a year after Copper closed a $13.3 million seed round in October.
“We provide complete transparency,” Copper co-founder and CEO Eddie Behringer said in a news release. “We give parents alerts and smart controls so they always know how their children are spending and saving. At the same time, we give teens the freedom to experiment with money — and even make mistakes — before entering the adult world.”
On its website, Copper has open roles in customer service, engineering and sales.
Copper, founded in 2019, offers teens a bank account they can manage through an app and a debit card. Copper's bank partner for the accounts is Evolve Bank and Trust. Users can set up direct deposits, withdraw money from ATMs and transfer money to friends. The app also offers financial tips to teach teens about money. Parents, meanwhile, can send money to their kids and monitor their spending.
According to the company, Copper has over 800,000 users and gets over 60% of its new customers through organic word-of-mouth. Co-founders Behringer and Stefan Berglund previously co-founded Snap! Raise, a fundraising startup that allows teams and clubs to raise money online.
Copper has competition from other well-funded companies. Atlanta-based Greenlight, for example, also offers a bank account aimed at kids, and the company last year raised a $260 million Series D round that pushed its value to $2.3 billion. Step, which is backed by celebrities like actor Jared Leto and two-time NBA MVP Stephen Curry, announced a $100 million Series C round on April 27 of last year, the same day Greenlight announced its Series D.
Fiat Ventures led Copper's Series A round, while Panoramic Ventures, Insight Partners, Invesco Private Capital and existing investors participated.
“Copper is building something bigger than banking for teens. The vision, team and growth model are built different, built to win and built to reshape the next generation’s financial future like never before,” Alex Harris, general partner at Fiat Ventures, said in a news release.
