Till Financial App Receives Backing from Bill Gates

The Growing Demand for Financial Control Among Young People

Contemporary children and teenagers increasingly desire greater autonomy and control regarding their financial resources.

While numerous financial services and applications are available to assist this demographic with saving and investing – Greenlight being a prominent example – a new startup is adopting a different strategy: empowering younger individuals to better manage their expenditures.

Introducing Till Financial: A Collaborative Family Finance Tool

Till Financial positions itself as a family-focused financial platform designed to cultivate smarter spending habits in children.

The New York-based company’s banking solution is structured to foster “open and honest” conversations between parents and their children. Recently, Till secured $5 million in funding to further its objectives.

Investment Details and Backers

A diverse group of investors participated in this funding round, including Elysian Park Ventures, Pivotal Ventures (Melinda Gates’ venture fund) alongside Magnify Ventures, Afore Capital, Luge Capital, Alpine Meridian Ventures, The Gramercy Fund, SM Ventures, and Lightspeed Venture Partners’ Scout Fund.

Angel investors also contributed, such as the founders of Petal (a fintech company), Drizly (an alcohol marketplace), the president of Transactis, and the president of 1800Flowers.

Learning Through Experience: Till’s Core Philosophy

A central tenet of Till’s approach is to facilitate learning through practical experience, building confidence in spending choices.

The platform provides users with a bank account, both digital and physical debit cards, and goal-oriented savings features. For instance, a teenager aiming to purchase an iPad can establish a dedicated savings account, with family members – like grandparents – having the option to contribute equally or even more.

Simulating Real-World Financial Responsibilities

Users can also configure automated payments for subscriptions like Netflix or Spotify, gaining firsthand experience with managing recurring expenses.

Taylor Burton, co-founder of the company with Tom Pincince, emphasized, “Parents and existing banking solutions often prioritize savings alone. We believe it’s crucial to first equip kids to become Smarter Spenders, with savings and investing as supporting elements.” He continued, “Till empowers children to spend intentionally, while providing parents with transparency and accountability, fostering trust.”

An Underserved Market Opportunity

Tom Pincince believes the current market presents a significant, unmet need.

He stated, “Traditional banks largely overlook this younger demographic, and early digital platforms are falling short of the mark.”

Room for Growth in a Large Market

Despite the abundance of applications targeting this age group, Pincince is confident that there is ample space for successful players.

“Considering the vast population of children under 18 and over eight, they represent the largest unbanked segment,” he explained. “Our focus isn’t on competing for a place in your son’s wallet; it’s on being the first financial product they ever use.”

The potential market is substantial – the average middle-class family in the U.S. spends $284,570 raising a child to age 18.

Early Validation and Industry Expertise

The platform is accessible to all families at no cost and quickly garnered the attention of Peggy Mangot, operating partner/COO of PayPal Ventures, who made a personal investment in Till during its pre-seed funding rounds.

Prior to her role at PayPal, Mangot spearheaded the development of Greenhouse, Well Fargo’s fee-free mobile banking app designed to promote responsible spending habits among younger users.

Personal Experience Drives Investment

Mangot, a mother of three, shared her experience of previously providing her children with her credit card for online purchases or cash for in-person spending.

“However, this approach diminished the value of money for them. They lacked a clear understanding of costs and didn’t feel a sense of ownership,” she noted. “It was simply me handing over funds.”

Respecting Agency and Empowering Young People

What particularly resonated with Mangot about Till was the team’s commitment to treating younger individuals “with respect and agency.”

She also believes that equipping children and teenagers with financial literacy at a young age will cultivate a generation of more responsible adults.

“By providing these tools early on, they’ll accumulate years of experience before becoming financially independent and managing their income and bills,” Mangot explained to TechCrunch. “Widespread adoption will lead to a more financially literate, confident, and empowered generation of young adults.”

Revenue Model and Future Plans

Beyond earning revenue from interchange fees, Till intends to collaborate with merchants to offer rewards to its users.

The company also plans to generate referral fees by connecting teenagers with other financial institutions as they mature and their needs evolve.

Burton concluded, “Our goal isn’t to be your child’s bank for life. We aim to be their first bank.” He added, “When they reach adulthood, we’ll celebrate their progress and guide them towards resources like student loans or their first credit card.”