Goalsetter Raises Seed Funding for Startup’s Financial Literacy Platform for Kids

By Thomas Price | Friday, 05 February 2021 | Startup, Tech, Education

With the economic uncertainty of the world given the COVID-19 pandemic, the need for strong financial knowledge for business owners and young people has never been higher. Especially in communities of color, where financial literacy has been a struggle for many years, startups and companies of all kinds are working to change that. Goalsetter is a startup that is taking a new approach to boosting financial literacy. By developing an app meant specifically to teach kids and teens, the company is starting financial education early to create more effective results. This effort has, in turn, caught the eyes of many investors, including NBA stars who helped fund the startup as it closed its initial seed funding round.

Goalsetter’s Platform and Business Model

Goalsetter is a fintech startup that has developed and launched a financial literacy app designed specifically to educate kids and teens about business, money, and investing. The app is currently available on both Android and iOS and allows for secure connection to a bank account. The startup has made the app incredibly wide-ranging, offering multiple different types of features for users.

The company currently allows users to save by depositing scheduled payments into the app. These payments will be put aside for specific goals or by rounding up other purchases to the nearest dollar and depositing the change into the app. Goalsetter also has a debit card that parents can make deposits into and set rules based on whether or not the kid has taken a financial literacy quiz. The startup has a similar system for allowances, which are withheld without taking the weekly app quizzes.

The company’s business model is built on two basic revenue streams. The first of these comes from taking a small transaction fee, and the other is a “pay as you please” system with users to ensure that the business model will not force users to pay more than they can afford. The inclusive nature of the business, along with the company’s focus on creating an easier, more accessible way for families to save money and better prepare their kids for the future, has sparked significant attention to the startup from investors.

Goalsetter’s Funding Round and Future Plans

In Goalsetter’s seed funding round, the startup raised a strong $3.9 million. This brings the total money raised by the company up to $6 million. The company’s funding round was led by Astia with participation from PNC Bank, Mastercard, U.S. Bank, Northwestern Mutual Future Ventures, Elevate Capital, Portfolia’s First Step and Rising America Fund, and Pipeline Angels, along with notable individual investors such as Kevin Durant, Chris Paul, Baron Davis, Sterling K. Brown, and CC Sabathia.

Future plans for the business include promoting Black History Month and promotion of the startup with a specific focus on communities of color.

When commenting on the business growth and company focus, CEO Tanya Van Court said, “As the only Black-woman owned fintech company focused on the kid's fintech space, we know how critical early finance education is to all kids in our country, and to Black and Brown kids in particular. Despite an increasing buying power, our Black and Latino communities are trending towards negative worth. Now is the time to teach our children to become smart spenders instead of conspicuous consumers. Goalsetter does this by teaching them that financial education, saving, and investing are the building blocks for achieving generational wealth.”

About the Author

Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.