11/6/2023 0 Comments Acorns stock priceLast year, when the company planned to go public via a SPAC, it had projected revenue of $126 million for the year, according to its deck, as analyzed by our own Alex Wilhelm. While he declined to reveal revenue or income figures, Kerner said only that the company had “exceeded its public forecast” for 2021 and now has more than 4.6 million paid subscribers. With the latest capital infusion, Acorns has raised over $500 million, according to Crunchbase. Private equity firm TPG led its Series F, which also included participation from BlackRock, Greycroft, Owl Rock (a division of Blue Owl), Senator Investment Group, Torch Capital, Industry Ventures, Bain Capital Ventures, Galaxy Digital, Headline and Kevin Durant & Rich Kleiman’s Thirty Five Ventures, among others. In the meantime, Acorns has raised money to continue to explore more acquisitions - it acquired two companies in the first half of last year - as well as to fund “growth and innovation,” Kerner said. “We think that makes the most sense going forward.” “As we go forward, we’re going to pursue a traditional IPO,” he said. New York-based Acorns had last raised more than three years ago - a $105 million Series E round in January of 2019 at an $860 million valuation.ĬEO Noah Kerner told TechCrunch this week that the company felt it “ wasn’t the right time to go public.” The announcement of the raise comes about six weeks after the consumer fintech startup said it was shelving its plans for its $2.2 billion SPAC with Pioneer Merger Corp. "Our vision is to build a financial wellness system that enables everyday Americans to save and invest." Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns, and CNBC has a content partnership with it.Savings and investing app Acorns has raised $300 million in a Series F funding round that values the company at nearly $2 billion. "We're focused on long-term financial wellness and helping customers get and stay committed to their long-term financial best interests," he said. When asked about growing competition, Kerner said "we run our own race." The start-up's revenue is made up of roughly 80% subscription fees and 20% transaction fees and brand partnerships. Kerner said the first quarter was also Acorns' best three months on record with subscribers doubling from the fourth quarter to 4 million. Wealthfront and Betterment both notched their best quarters in history to start year. Part of that was thanks to a frenzy around GameStop and other "meme stocks." The trading mania has brought new attention to the markets, and driven millions of first-time investors to platforms such as Schwab, Robinhood and Interactive Brokers.īut it's benefitting passive investment apps, too. The Acorns listing comes on the heels of record growth for investing apps during the pandemic. He pointed to John Christodoro, a PayPal board member and chairman of Pioneer Merger, as the right partner and one reason Acorns bypassed a traditional IPO. Irvine, California-based Acorns had been in the process of closing another private funding round, Kerner said, but decided to go the recently popular SPAC route. Comcast owns CNBC's parent company, NBCUniversal, and is an investor in Acorns, and CNBC has a content partnership with Acorns. The company, last valued at less than $1 billion, has attracted venture investments from the likes of PayPal Ventures, BlackRock, Ashton Kutcher, Jennifer Lopez and Dwayne Johnson, according to PitchBook. Kerner and Pioneer's sponsor each plan to contribute 10% of their personal ownership in Acorns as a gift to eligible Acorns customers. Institutional investors Wellington Management, Greycroft, TPG's global impact investing platform, and funds managed by BlackRock also committed to a private placement as part of the announcement. "We just saw this as an accelerant on that journey." "Now was the time to go public to accelerate our growth and get the tools of responsible wealth-making in everyone's hands as fast as possible, when they need it most," said Acorns CEO Noah Kerner. When it is finalized, Acorns will trade on the Nasdaq under the symbols OAKS - a nod to the company's motto and analogy of growing acorns into "mighty oaks." Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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