Robo Acorns said to seek funding at $700 million valuation

Robo Acorns said to seek funding at $700 million valuation
BlackRock and PayPal are among the company's existing investors
NOV 16, 2018
By  Bloomberg

Acorns Grow Inc. is in talks with investors for a new funding round that would give it a valuation north of $700 million, according to people familiar with the matter. Acorns, which is one of a growing number of startups offering digital wealth management services, is looking to raise more than $100 million in the new round, though that number could change, said one of the people, who all asked not to be identified because the deal is private. The funding round is being led by a large corporate investor, the people said. No one Bloomberg spoke with would identify the backer. The company's existing investors include BlackRock and PayPal, along with celebrities Ashton Kutcher and basketball player Kevin Durant. Acorns declined to comment. The startup has more than $1 billion in assets under management, according to a filing with the Securities and Exchange Commission. Some 4 million people have signed up for the company's app, which puts the change from their purchases into exchange-traded funds managed by Vanguard Group Inc., BlackRock and others. (More: Acorns co-founder believes his new technology can get clients more engaged with investments) Earlier this year, the company said it would offer debit cards to customers, signaling plans to expand its offerings and wade deeper into the banking industry. People who use the card will be able to make digital direct deposits into their Acorns accounts, mobile check deposits and free bank-to-bank transfers. Excluding the new funding, the firm has raised $159 million to date, according to research firm CB Insights. (More: Fees on savings apps can add up)

Latest News

The power of cultivating personal connections
The power of cultivating personal connections

Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.

A variety of succession options
A variety of succession options

Whichever path you go down, act now while you're still in control.

'I’ll never recommend bitcoin,' advisor insists
'I’ll never recommend bitcoin,' advisor insists

Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.

LPL raises target for advisors’ bonuses for first time in a decade
LPL raises target for advisors’ bonuses for first time in a decade

“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.

What do older Americans have to say about long-term care?
What do older Americans have to say about long-term care?

Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound