Armed with $40M in fresh capital, fintech Stash says it's moving toward an IPO
Summary
As part of that effort, the company also announced today that Amy Butte, former CFO of the New York Stock Exchange, has been tapped to serve as its first independent audit chair. However, margins are up, she said.That was a very purposeful choice that wemade in the current market to focus on a better balance of growth and profitability, Landsman told TechCrunch in an interview. Stash targets lower and middle income consumers with plans that start at $3 a month.The company claims that with just 1 cent, customers can buy fractional shares of stocks and funds, build their own diversified portfolios, and learn how to invest confidently. Like Acorns, Stash also derives 81% of its revenue from subscriptions whereas Robinhood is more transactional, she said, and focused more on the upper bounds of middle income consumers.Added Landsman: We encourage our customers to think long-term about their investments and unlike most perceived competitors in our space, we do not need our customers to make frequent trades that are neither in their best interest nor are they the foundation for our revenue.For Butte, Stash stands out in a competitive fintech landscape.She told TechCrunch in an interview: I think that there are many fintech companies that are out there that appear more like tools. And right now, theyre preparing themselves to be a part of the next class of companies preparing for the actionality of public markets whether thats two or three years from now.Rebecca Kaden, managing partner at Union Square Ventures, believes that Stash is uniquely positioned within fintech because of the ways it blends investing tools with advice and proprietary tech.She added: For too long, only the wealthy have been guided to the best next step in their financial lives; Stash does it at scale, with an eye towards simplicity.Want more fintech news in your inbox?