Invest, invest, invest. This is the advice millennials are given from the moment they receive their first paychecks after graduation, but there’s no easy way to start. Amongst the myriad of post-grad stressors, financial management for millennials is almost always at the forefront. The lack of preparation from our higher education institutions has created an environment in which recent college graduates are terrified to make mistakes with their money, leading to a financial apathy and stalemate.
Stash is a financial program aiming to change the investment game for millennials.
Recommended Stories
The new mobile app is targeted at less financially experienced individuals who are looking to begin trading stocks for the first time. With a minimized-risk model, Stash just brought in an additional $40 million of VC funding last week led by Coatue Management LLC. The New-York based operation’s existing investors Breyer Capital, Valar Ventures Management LLC, and Goodwater Capital initially threw in $25 million last December — keep in mind that this entire robo is less than two years old. Stash creates customized portfolios for individuals based on their spending habits, interests, and other miscellaneous hobbies.
Co-Founders Brandon Krieg and Ed Robinson have raised a total of $78.75 million since founding the organization in October of 2015. The rapid growth in popularity has led to comparisons between Stash and other millennial focused apps such as Snapchat and WhatsApp. Stash doesn’t charge commissions on buying, selling, or transferring. Stash allows people to invest as little as $5 and the first three months of service are free. The average Stash user is 29 and earns $45,000 per year.
However, Stash plans to expand their reach. In order to create a sustainable business model, they are now going after HENRYs (high earners, not rich yet) by pushing beyond the accumulation stage and into retirement building. They’re creating more detailed portfolios, keeping in mind that their target is to get and retain customers who want some amount of choice in their investing. Their image of “trendy investing on the go” without the difficulties of investment jargon has awarded them their current users, totaling just under 1 million.
By using Stash, it seems like demanding millennials may have the opportunity to control their financial situations after all.