Acorns
Total amount raised
$1.9 Billion
Latest funding date
March, 2022
Acorns
Location
Title
Acorns has successfully raised $64.1 million over six funding rounds, achieving a valuation of $1.9 billion. The platform offers a suite of financial services designed to help users invest, save, and spend responsibly.
Keep reading to explore the intricacies of Acorns' fundraising journey and the investors backing this innovative platform.
What Is Acorns?
Acorns, founded by Walter and Jeffrey Cruttenden, is a financial technology company based in California, with offices in Irvine and Newport Beach. The company helps individuals grow their money by investing spare change from everyday purchases.
Acorns offers a range of services, including automated investment accounts, retirement savings through Acorns Later, and educational resources to help users manage their finances better. The platform is designed to make investing accessible and straightforward for everyone.
With a team of 201-500 employees, Acorns continues to innovate in the financial technology space, providing tools to invest, save, and spend responsibly with minimal fees.
How Much Funding Has Acorns Raised?
- Series A
- Amount Raised: $2,500,000
- Date: October 2013
- Lead Investors: Not specified
- Motivation Behind the Round: To develop the initial version of the Acorns app and launch it to the public.
- Series B
- Amount Raised: $8,300,000
- Date: March 2014
- Lead Investors: Not specified
- Motivation Behind the Round: To expand the team and enhance the app's features.
- Series C
- Amount Raised: $23,000,000
- Date: April 2015
- Lead Investors: Greycroft Partners and e.ventures
- Motivation Behind the Round: To scale the app, drive product innovations, and eliminate traditional barriers to saving and investing.
- Unknown Round
- Amount Raised: $30,000,000
- Date: April 2016
- Lead Investors: PayPal Holdings Inc.
- Motivation Behind the Round: To support the growth and development of Acorns Grow, particularly in enhancing its app targeted at young investors.
- Series F
- Amount Raised: Undisclosed
- Date: March 2022
- Valuation at Round: $1.9 billion
- Motivation Behind the Round: To further expand its financial services and reach more users.
Total Amount Raised: $63,800,000
Current Valuation: $1.9 billion
Key Investors
- PayPal Holdings Inc.
- Details: PayPal Holdings Inc. is a leading financial technology company that offers digital payment solutions. It led a $30 million funding round for Acorns Grow.
- Investment Focus Areas: Financial technology, digital payments, e-commerce.
- Notable Investments: Venmo, Honey, Xoom.
- Greycroft Partners
- Details: Greycroft Partners is a venture capital firm that co-led Acorns' Series C funding round. The firm specializes in early and growth-stage investments.
- Investment Focus Areas: Technology, media, consumer internet.
- Notable Investments: Venmo, Braintree, Scopely.
- e.ventures
- Details: e.ventures is a global venture capital firm that co-led Acorns' Series C funding round. Mathias Schilling, co-founder and managing partner, joined Acorns' board.
- Investment Focus Areas: Consumer internet, media, mobile.
- Notable Investments: Angie’s List, Groupon, NGINX.
- Sound Ventures
- Details: Sound Ventures is a venture capital firm founded by Ashton Kutcher and Guy Oseary. It participated in Acorns' Series C funding round.
- Investment Focus Areas: Technology, media, consumer products.
- Notable Investments: Uber, Airbnb, Spotify.
- MATH Venture Partners
- Details: MATH Venture Partners is a venture capital firm that participated in Acorns' Series C funding round. The firm focuses on early to growth-stage technology companies.
- Investment Focus Areas: Technology, software, consumer internet.
- Notable Investments: SpotHero, Fooda, Tock.
What's Next for Acorns?
Acorns stands at the cusp of significant growth opportunities, driven by the increasing trend of automated investing platforms. With a $30 million funding round led by PayPal, the company is well-positioned to expand its user base among young investors and enhance its app features. The potential for strategic partnerships and global expansion further amplifies the scope of its growth.
Future fundraising opportunities seem promising, especially with the backing of major players like PayPal. This could pave the way for additional investments and possibly even acquisitions, enabling Acorns to scale its operations and reach a broader audience. However, the company will need to navigate challenges such as competition from other fintech firms and regulatory hurdles in different markets.
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