Goalsetter Raises $15M for B2B Financial Literacy App

Goalsetter Secures $15 Million in Series A Funding

Goalsetter, a platform dedicated to financial education for children, has successfully completed a $15 million Series A funding round. Seae Ventures spearheaded the investment, with significant contributions from Fiserv, Mass Mutual Catalyst Fund, Citizens Financial Group, Astia Fund, NBA players Kevin Durant and Carmelo Anthony, and actors Anthony Anderson and Lance Gross.

The Founder's Journey and Market Insight

The company was established by Tanya Van Court, whose personal experience with financial hardship – a loss exceeding $1 million during the 2001 stock market downturn – fueled her passion. Following a career at Nickelodeon, Discovery Education, and ESPN, and after becoming a mother, she identified a critical void in how financial concepts are communicated to young people.

How Goalsetter Works

The Goalsetter application enables children to receive allowances or monetary gifts from family and friends. Funds can also be accessed through a Goalsetter debit card. A key differentiator is the requirement for children to complete age-appropriate financial literacy quizzes to unlock these funds. Recently, the platform expanded its offerings with Goalsetter Invest, allowing users to engage in stock buying and selling.

Expansion into the B2B Sector

This Series A funding signifies Goalsetter’s strategic entry into the business-to-business (B2B) market. Previously, the company primarily focused on direct-to-consumer (B2C) acquisition through traditional marketing and organic growth.

Strategic Partnership with Fiserv

The inclusion of Fiserv as an investor has facilitated a partnership to offer a white-labeled version of Goalsetter to other financial institutions, including banks. This collaboration leverages Fiserv’s extensive infrastructure within the financial industry.

Addressing the Competitive Landscape

The rationale behind this move is to assist traditional banks in remaining competitive against emerging fintech companies, such as smart card services and neobanks. Goalsetter provides a comprehensive platform to help families establish savings and investment accounts, alongside valuable financial education resources for their children.

A Pivotal Realization

Van Court described a sudden insight that prompted the shift towards the B2B model. She realized the potential for disruption, drawing parallels to the cable industry’s decline.

The Generational Shift in Fintech

She observed that younger generations, upon leaving their parents’ homes, increasingly favor streaming services over traditional cable television. Van Court anticipates a similar trend in fintech, where individuals will gravitate towards neobanks and new debit card services and remain loyal to these platforms throughout their lives.

Securing Future Customer Loyalty

“The only way for large banks to avoid being overtaken is by offering a product like Goalsetter, which boasts high customer satisfaction and appeals to families across all age groups,” Van Court stated. “This allows them to reach customers early and build lasting relationships.”

The Power of Early Engagement

The strategy of targeting young consumers mirrors successful marketing tactics, such as Coca-Cola’s use of animated polar bears in advertising – establishing brand loyalty from a young age.

Expanding Partnerships

In addition to the Fiserv partnership, Goalsetter is actively seeking collaborations with large employers to provide the platform as an employee benefit.

Navigating Challenges as a Black Female Founder

Van Court has openly discussed the obstacles she has encountered as a Black female founder, noting disparities in funding compared to her white male counterparts. (Further insights can be found in an episode of the Found podcast.)

Finding a Sustainable Path to Growth

“We needed to identify a unique market position that we could dominate quickly,” she explained, highlighting the rationale for pursuing partnerships with banks.

The Imperative for Banks to Innovate

“Banks are facing a critical juncture if they lack a dedicated fintech product for young customers,” Van Court emphasized. “I could either compete independently against a system that favors others, or collaborate with banks that require a strong product to attract and retain the next generation of customers.”