Home Bloom Has the Secret to Gen Z Wealth Building

Bloom Has the Secret to Gen Z Wealth Building

As a company, Bloom is aware of the absence of youth-friendly resources for financial education. Existing platforms may provide free stock or trade transactions, but they often fail to provide users with the fundamental education they need to succeed in the investment world. Inspired by their own struggles, Maman and Yang set out to fill this knowledge gap by developing an app that does more than just offer a brokerage account; it also provides users with engaging, hands-on lessons on how to use it.

Bloom uses an Instagram-like structure to provide educational content and quizzes to reinforce learning. By answering questions correctly in quizzes, users are rewarded with points within the app. This game-based method of education not only makes studying fun, but also increases knowledge retention and comprehension.

Bloom is unique because it has no commission structure. By eliminating the burden of high fees, Bloom makes investing accessible to young people without reducing their returns. Bloom provides a low-priced entry point for users to begin their investment journey with a monthly fee of $15 or a yearly fee of $120. Furthermore, there is no required minimum balance to use the app, making it available to users of varying economic means.

Bloom has achieved remarkable success and growth since its inception. The app’s success in teaching young people to invest can be seen in the fact that over 10 million users have completed lessons. The company has also hit seven figures in annual recurring revenue in its first year of business.

The rapid expansion of Bloom’s user base is further evidence of the app’s widespread appeal. Although the app’s initial target audience was younger teenagers, its current user base is skewed toward those in their early twenties. Because of this change, the company’s founders are thinking about developing new products to meet the demands of their clientele.

The financial needs of young people are a growing market, and Bloom competes with other startups like Copper and Greenlight. Copper, a banking and investment app aimed at teenagers, has raked in $29 million in funding and amassed over 800,000 users in a little over a year. Greenlight, a children’s app that teaches them about money and keeps them safe, has also been very successful.

Despite stiff competition, Bloom has raised $4.4 million in seed funding from high-profile backers like Contrary, Slow Ventures, Offline Ventures, Rocketship VC, and an angel group led by Andrew Yang. With these funds, Bloom will be able to expand its product line and strengthen its position in the market.

As Bloom continues to expand, co-founders Maman and Yang are thinking ahead about what’s next for their tech platform. The partners hope to broaden their catalog to include retirement savings accounts and other freemium-style add-ons. Bloom’s ultimate goal is to be its users’ trusted financial partner throughout life by constantly providing helpful tools and encouraging long-term commitment.

Bloom’s unique selling proposition is its commitment to educating and equipping young people in the realms of personal finance and investment. Bloom is a one-of-a-kind resource for young people looking to learn and grow their wealth thanks to its zero-commission model, interesting educational materials, and intuitive interface. The company’s future success and growth position it to become a major influence on young people’s financial lives.

First reported on TechCrunch

Frequently Asked Questions

1. What is Bloom, and what sets it apart from other financial platforms?

Bloom is a company that addresses the lack of youth-friendly resources for financial education and investment. Unlike other platforms that offer free stock or trade transactions without adequate educational content, Bloom focuses on providing engaging, hands-on lessons and quizzes to help users succeed in the investment world. The app’s game-based learning approach enhances knowledge retention and comprehension.

2. How does Bloom make investing accessible to young people?

Bloom eliminates the commission structure, making investing more accessible to young people without reducing their returns. It offers a low-priced entry point with a monthly fee of $15 or a yearly fee of $120, and there is no required minimum balance to use the app, catering to users with varying economic means.

3. What are some of the milestones and achievements of Bloom since its inception?

Bloom has achieved remarkable success and growth, with over 10 million users completing lessons and hitting seven figures in annual recurring revenue in its first year of business.

4. Who is Bloom’s target audience, and how has it evolved?

Initially targeting younger teenagers, Bloom’s current user base is now skewed toward those in their early twenties. This shift has prompted the founders to consider developing new products to meet the demands of their clientele.

5. How does Bloom compare to other startups in the market?

Bloom competes with other startups like Copper and Greenlight, which also focus on providing financial education and investment options to young people. Copper has secured $29 million in funding and amassed over 800,000 users in a little over a year, while Greenlight has achieved significant success as well.

6. Who are some of Bloom’s high-profile backers?

Bloom has raised $4.4 million in seed funding from well-known investors such as Contrary, Slow Ventures, Offline Ventures, Rocketship VC, and an angel group led by Andrew Yang.

7. What are Bloom’s plans for the future?

Bloom aims to expand its product line, potentially including retirement savings accounts and other freemium-style add-ons. The company’s ultimate goal is to be a trusted financial partner for its users throughout life, providing helpful tools and encouraging long-term commitment.

8. How does Bloom stand out as a unique resource for young people?

Bloom’s unique selling proposition lies in its commitment to educating and equipping young people in personal finance and investment. Its zero-commission model, interesting educational materials, and intuitive interface make it a one-of-a-kind resource for young individuals looking to learn and grow their wealth.

9. How can users get started with Bloom?

Users can sign up for Bloom through the app and begin their financial education journey by accessing the educational content and quizzes designed to make learning about investments fun and engaging.

Featured Image Credit: Unsplash

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Brad Anderson
Former editor

Brad is the former editor who oversaw contributed content at ReadWrite.com. He previously worked as an editor at PayPal and Crunchbase.

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