Fintech startup Greenlight, which provides a debit card and app for kids to learn about financial education, has closed a sizable Series B funding round of $54 million. The round was led by Columbus, Ohio-based Drive Capital with participation from JPMorgan Chase and Wells Fargo, as well as existing investors TTV Capital, Live Oak Bank and Relay Ventures.
“[Drive Capital] loved what were doing because we’re actually helping kids learn these important financial concepts and habits before they’re adults and can get themselves into bad credit card debt, or whatever it may be,” says Greenlight co-founder and CEO Tim Sheehan. Drive Capital Partner Chris Olsen will join the Greenlight Board.
It’s not the first time the startup has partnered with notable financial and technology backers: its 2018 $16 million Series A included SunTrust Bank, Ally Financial, nbkc bank, and Amazon’s Alexa Fund.
Greenlight’s branded debit card and accompanying app allows parents to directly transfer allowance money to kids, similarly to a Venmo transaction, and set controls on how much and what they can spend. Kids can earn money through a chores feature, as well as “parent-paid interest,” where parents set an interest rate on any savings their kids collect.