Acorns is a six-year-old company based on the concept of investing and saving. The company recently announced that after its series E funding round, it has a total valuation of its assets and liabilities of $860 million. The latest cash inflow of $105 million led Acorns to be valued at $860 million in its latest 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, NBCUniversal is now also a board member in 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. Moreover, the company is the best company in monetary terms and also the top company in comparison to its competitors, Robo-advisor Betterment and Wealthfront. Robot-betterment has a valuation of approximately $700 million. On the other hand, Wealthfront has a valuation of approximately $500 million.
The California based company that supports and promotes the concept of investing and saving is a widespread company that comprises over 4.5 million users. 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.” But it has been significantly noted by us that more and more elderly people, even those who are more than 90 years old, are also significantly contributing to this account.
