Acorns is a six-year-old new york based company working on the concept of investing and saving, it’s basically an investment software provider.
Acorns recently announced $300million series E funding round, it has a total valuation of its assets and liabilities of $2b. The latest cash inflow of $105 million led Acorns to be valued at $860 million in its previous funding.
The amount of investment came from a number of recognized investors, namely Comcast Ventures, NBCUniversal, Bain Capital Ventures, BlackRock, TPG’s Rise Fund, and MSD Capital.
At present, after this funding, NBCUniversal is the largest stakeholder in Acorns. Not only this, but NBCUniversal is now also a board member of the company.
The CEO, Noah Kerner, in one of his statements, tells TechCrunch that “we thought everything had the right time to go public, and we will wait until that right time.” At present, as far as we can see, instead of going public, it is the best time to pursue a traditional IPO.
Kerner also says that “in the meantime, we are looking forward to expanding our business and attracting more and more global customers.” In the past year, we have acquired two business units, and we are planning to acquire one more this year. Apart from this, our vision and goal are very clear-“growth and innovation.”
The new valuation of the company is an outstanding and unexpected one. If calculated and measured in mathematical terms, then it is three times more than what it was in 2016.
In moreover, the business is superior than Wealthfront and Betterment, its rival robo-advisors, both financially and in terms of market share.
The California-based company Acorns which supports and promotes the concept of investing and saving is a widespread company that comprises over 4.5 million users. In the investment section, Robot-betterment has a valuation of approximately $700 million. On the other hand, Wealthfront has a valuation of approximately $500 million.
One of the best features of its products is that it automatically invests and saves the small and remaining cents of the users into an index fund. To understand this concept, let’s assume a situation where you are spending your dollars.
Suppose an Acorns user buys a latte for $3.55, then the mobile app will automatically round it to the nearest dollar, i.e., $4, and the remaining 45 cents will be debited and put into a professionally managed and handled index fund. Hence, promoting investment and side-by-side savings.
Another amazing feature is its retirement account service, which is called “Acorns Later.” According to the company, “this is the most popular product of the company, which attracts more than 350,000 investors all across the world who have successfully contributed more than $40 million to this account up to the present date.”
Kerner says that “The average number of years of a person who contributed to this account when calculated by us was 32 years, and their income ranged between $50K and $60K.” However, it has come to our attention that a growing number of older persons, including those who are over 90 years old, are also making a large contribution to this account.