What Is Wingocard?
Wingocard was founded in early 2020 by entrepreneurs Mehdi Mehni, Salvatore D’Agostino, and Sebastien Brault. The trio all had experience in the business world prior to launching this startup. The idea for the company stemmed from the founders’ own frustrations with teaching teenagers how to manage money, they said in a recent interview.
“I would give my teen cash, but anytime they wanted to buy online they would come to me to use my credit card,” Brault said. “It didn’t make sense from both a security or a learning point of view because they weren’t tracking anything. We thought there had to be a better solution.”
The investing platform developed by Wingocard is free and available to all teenagers 13 years of age or older. The business works by connecting to a parent’s account, at which point the teens are taught how to invest through game-like financial literacy tools. The platform also has a number of other features.
Money and Investors
The investing startup has raised $3 million since it was founded last year, according to tracking platform Crunchbase. The company has not made public who contributed during the initial funding round. However, the $1.7 million raised by Wingocard in the funding round closed this month involved a slew of investors, the company revealed. Panache Ventures led the round, with participation from Diagram Ventures. Angel investors Cherif Habib and Francois Arbour also contributed to the company.
The Future of the Company
Though it was only founded a year ago, Wingocard has already built out a significant customer base for its business. The startup says the waitlist for its app grew to more than 75,000 teenagers when it was launching. The money raised in this funding round will help the investing business expand its growth and product offerings.
However, Wingocard isn’t the only startup in this business. The company will also have to compete against a host of others looking to catch the attention of younger people in the investing realm. In fact, Crunchbase data shows that in 2016, investors infused roughly $535 million into nearly 90 known deals with global fintech startups focused on children, young people, and parents.
This budding sector has drawn the interest of both new entrepreneurs and established industry players, meaning the competition is stiff. For example, Step, a California-based startup founded in 2018, recently closed on a $100 million Series C funding round. Among the investors who have pumped money into this startup are TikTok celebrity Charli D’Amelio, Will Smith, and The Chainsmokers. Meanwhile, big financial companies like Fidelity are also trying to carve out a piece of the pie. The investment giant announced in May that it is launching new investing accounts just for teens.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.