YouTube megastar MrBeast, whose real name is Jimmy Donaldson, announced that his company, Beast Industries, is buying Step, a teen-focused banking app (09/02).

Half a Billion in Funding and 7 Million Users Drive Growth

Step has raised $500 million in funding and has grown to over 7 million users. The platform provides financial services aimed at Gen Z, helping them build credit, save money, and invest.

The company has attracted celebrity investors, including Charli D’Amelio, Will Smith, The Chainsmokers, and Stephen Curry. Venture firms such as General Catalyst, Coatue, and the payments company Stripe have also invested in Step.

Beast Industries’ Diversified Ventures Strengthen Acquisition

Partnering with MrBeast aligns with Step’s goal of reaching young audiences. MrBeast is the most-subscribed creator on YouTube, with over 466 million subscribers, but his interests extend beyond his videos. He said, “Nobody taught me about investing, building credit, or managing money when I was growing up. I want to give millions of young people the financial foundation I never had.”

A leaked pitch document from last year indicated that Step fits into Beast Industries’ business plans. The company is reportedly also considering launching a mobile virtual network operator (MVNO), a lower-cost phone plan similar to Ryan Reynolds’ Mint Mobile.

Beast Industries’ business goes beyond YouTube ad revenue. The company reinvests much of that revenue into content. Feastables, the chocolate brand, is reportedly more profitable than both the MrBeast YouTube channel and the Prime Video show “Beast Games,” according to leaked Bloomberg documents. Some other ventures, such as Lunchly and MrBeast Burger, have struggled.

Step founder and CEO CJ MacDonald said, “We’re excited about how this acquisition is going to amplify our platform and bring more groundbreaking products to Step customers.”

PHOTO: STEVEN KAHN/BUSINESS INSIDER

This article was created with AI assistance.

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