PayPal Participates in $30m Round in Acorns Micro-Investing App

PayPal Participate in $30m Rou  in Acorn Micro-Investing App

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. Source: BloombergJeff 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.
Source: Bloomberg

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.

 

 

 

 

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