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

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)

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