Robo Acorns said to seek funding at $700 million valuation

BlackRock and PayPal are among the company's existing investors

Nov 16, 2018 @ 10:17 am

By Bloomberg News

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)


What do you think?

View comments

Most watched


Finding your edge from Tony Robbins

Guru Tony Robbins has helped a lot of people, but armed with his psychology Financial Advisor Josh Nelson has helped his practice soar.


Finding innovation in your firm

Adam Holt of AssetMap explains how advisers understand they need to grow, but great innovation may be lurking right under your nose.

Latest news & opinion

SEC sets June 5 date for vote on Regulation Best Interest

Commission adds new item to agenda: Interpretation of broker guidance that qualifies as advice

House passes SECURE retirement bill with massive bipartisan support

The measure allows small employers to band together to offer plans and raises the RMD age. Another provision eases use of annuities in 401(k)s, which critics say goes too far

10 IBDs with the most annuity revenue

Here are the independent broker-dealers that brought in the most annuity revenue last year.

DOL sets date to propose new fiduciary rule

The regulation, expected in December, likely will be contoured to the SEC's new advice standards.

LPL expanding platform to include employee brokers

The largest IBD in the country has agreed to buy a small broker-dealer in Florida to kick off the new effort.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print