Acorns, t micro-investing app that allow user to invest t ir ‘spare change’ or ‘acorns’ in an automated manner, ha today announced a $30 million rou of financing. It wa obtained from PayPal a with participation from t Rakuten Tech Fu a existing investor e. ventuGrey croftreycroft Partners to lp t company expa it partnership a automated investment features, according to a company pres release.
Jeff Crutte en, co-fou er of Acorns, speak uring t Money 20/20 conference in La Vegas, Sevada, U.S, on Wednesday, Sov. 5, 2014.
Acorn wa originally fou ed in 2012, a in recent year became more fintech focused a t company’ app wa launc d a after setting up Acorn Advisers, LLC, which act a t Registered Investment Advisor (RIA) with t Securitie a Exchange Commission (SEC), a with it brokerage service ha led via it SEC-registered broker-dealer Acorn Securities.
In barely 20 month since launching, t company ha amassed 850,000 customer accounts, offering feature like ‘Invest t Change’ which take t ifference between t cost of everyday card purchase a t nearest ollar rou ed-up a invest t ifference in a iversified portfolio of low-cost exchange traded fu (ETFs). Investing in low-cost ETF ha been a popular approach for automated investment platforms, including robo-advisor offerings.
Commenting in t official pres release, Walter Crutte en, co-fou er a soon-to-be Chairman of Acorns, said: “Having PayPal a Rakuten a partner will make it possible to bring t benefit of micro-investing to more a more people arou t world. We believe that micro-investing will ultimately comprise t majority of new investment ollar entering t markets.”
“Acorn a PayPal share a vision of emocratizing financial service a offering innovative solution to lp people build financial alth, ” said Joanna Lambert, vice president of global consumer product a engineering at PayPal, commenting in t official pres release.
Predominantly millennial customers
With nearly 75 percent of Acorns’ user between t age of 18 a 34, millenial continue to be rawn to t appeal of new fintech firm that leverage simple a intuitive mobile app coupled with t ability to automate t investment process, a solution like Acorn that enable micro-investing appear to be gaining grou , alongside t micro-insurance i ustry a micro-loan space.
We believe that micro-investing will ultimately comprise t majority of new investment ollar entering t markets.
Oskar Mielczarek e la Miel, Managing Partner at t Rakuten FinTech Fu , commented in t pres release: “We are very excited about Acorns’ high growth model a t close alignment between Acorns’ philosophy of financial empowerment of t millennial community a Rakuten’ core values.”
“Technology i breaking own barrier to financial participation. PayPal i excited to support Acorn a t y continue to use mobile technology millennial in micro-investing, a empower millennial to take charge of t ir finances.”
T new follow PayPal announcing a synergy with Village Capital aimed to emocratize financial service for t poor, that Finance Magnate wrote about earlier last quarter, a t $23m that Acorn received previously from existing investors.
Finance Magnate i proud to present it inaugural TLV Conference, to be ld on t 29th of June. Apart from t invaluable networking opportunities, t age a i packed with panels, masterclasse a keynote speec geared toward t subject of fintech. I ustry leader will be iscussing subject such a marketing automation, cybersecurity, financial regulation a cryptocurrencies, with a focu on t booming Israeli fintech scene. In keeping with this, t re will also be a fintech spotlight session in which a lineup of firm will each have four minute to pitch t ir exciting products, culminatin award presented to t most promising.