Goalsetter Raises $3.9 Million In Seed Round Led By Astia, NBA Stars

FinTech startup Goalsetter has raised $3.9 million in a seed round led by Astia, with additional participation from NBA superstars Kevin Durant of the Brooklyn Nets, Phoenix Suns guard Chris Pau and others, CNBC reported Monday (Jan. 25).

Additional investors include Vista Equity Partners chair Robert F. Smith; former NBA player Baron Davis;  former New York Yankees pitcher C.C. Sabathia; PNC Bank; Mastercard; and Elevate Capital, which specializes in funding for women and entrepreneurs of color

Tanya Van Court, founder and CEO of Goalsetter, told CNBC the firm’s additional business partners will be announced sometime in 2021. The New York startup is also planning a promotional effort for the app during Black History Month in February.

Goalsetter is a financial literacy and savings tool for children and teens, with a particular emphasis on educating Black youth. The company was launched at New York City’s 2019 Entrepreneurs Roundtable Accelerator and aims to educate young people about economic concepts and principles as well the lingo used in the industry. The mobile banking app also enables peer-to-peer transactions and money transfers.

A report from the nonprofit think tank Progressive Now indicated that 70 percent of Black and Latino households — compared to 40 percent of white households — may fall below the $68,000 threshold considered middle class, Van Court said, per CNBC.

The economic divide means that the average Black household will hit zero by 2053 if it continues on the same trajectory, Van Court said. The median Latino household could be zero by 2073, she added.

Van Court told CNBC the app can help combat wealth inequality with savings tools and by promoting “delayed gratification” by helping families reach financial goals and limit spending.

One of Goalsetter’s features is “learn before you burn,” which allows parents to lock debit cards until their children complete weekly financial literacy quizzes.

“So, if you activate this tool, your kids’ debit card will automatically freeze on Sunday mornings if they haven’t taken their financial literacy quiz for the week,” Van Court said. “And it will unfreeze once that kid takes their financial literacy quiz.”

Americans overall have not been known for financial literacy. A PYMNTS survey in March indicated that 45.4 percent of consumers had $2,500 or less in savings.