Stack founding team e1662584523583

Stack.io Banks $2.7M to Teach Teens, Parents About Crypto • Technology Flow

Stack founding team e1662584523583

For the price of a cup of coffee, your teenager can learn how to invest in cryptocurrency.

Today, Stack.io CEO Will Rush released what it called “the first crypto education and business app for teenagers and their parents.”

The subscription-based app costs $3 per user per month and is available for Android. It’s designed with Gen Z in mind, a generation that grew up with blockchain and most likely owns some form of digital asset, Rush told Technology Flow.

He founded the company in 2021 with CTO Natalie Young and CCO Angela Mascarenas. The founding team has an eclectic background that includes securities for teen fintech app Copper and Rush, while Mascarenas helped digitize the cookie ordering system for Girl Scouts and Young. A T-Mobile engineer.

While at Copper, Rush led efforts to teach kids about investing, but found that replacing the word “stock” with “crypto” led to more engagement. He also sees Reddit posts from teenagers trying to get into crypto using their parents’ information to create an account on exchanges like Coinbase or Robinhood, and getting them frozen out because they’re not old enough to have an account — and rightly so.

“Clearly this is a thesis that no one has attempted trailblazing,” Rush told Technology Flow. “How can we be good people and create a safe and educational ecosystem?”

Coinbase and Robinhood already dominate the crypto exchange space, but Rush believes the stock will stand out from the crowd by offering miners access to the tax and regulatory benefits of the Uniform Transfers Act (UTMA) and features like a trading environment designed specifically for teenagers. And, when the adult users reach 18 years, the assets are transferred in their name. Users can also earn rewards as they learn, which translates into getting the app for free.

It’s also limiting the assets it offers to protect its customers, Rush said. It starts with seven cryptocurrencies like Bitcoin, Ethereum and Cardano. The stack also doesn’t allow off-platform transfers, which Rush believes can reduce cryptocurrency fraud and scams affecting exchanges by up to 98%.

“We think that by making some of those decisions we can provide a better educational product,” he added.

Meanwhile, the app launched with more than 6,000 users on a waitlist and follows a $2.7 million investment from Madrona, The Venture Collective, Santa Clara Ventures and a group of angel and individual investors. The new investment brings the stock to just over $3 million in total funding to date.

The new capital infusion will enable the company to continue building its app and high school-focused financial literacy program. Rush also wants the stock to acquire more financial licenses and expand its offerings. The company currently has eight employees and he expects to hire two more this year.

Next, the company will make what Rush calls “a more thoughtful move to its educational content,” including creating financial content similar to what’s popular on TikTok and YouTube.

“We need a big lift to make it relevant to teenagers and are looking at educational things like NFTs, Metaverse and Web3,” he said. “We aim to be the trusted account to democratize investment for youth.”

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