Acorns is an 8-month-old app that makes investing spare change dead simple, and it just raised $23 million
The new funding, co-led by Greycroft Partners and e.ventures with participation from Sound Ventures, Garland Capital, and MATH Venture Partners, brings Acorns' total funding to $32 million.When Acorns' cofounder Jeff Cruttenden was in college, he realized a lot of his friends - many of whom studied economics or finance - didn't have their own investment accounts.
"It was really striking," Cruttenden, whose dad set up a small investment account for him when he was young, says. "These people talked about investing all the time, but they didn't have their own accounts." Cruttenden and his father co-founded Acorns together.Cruttenden says there are three main reasons people don't invest: It's difficult to get enough money together to get started; commissions often make it hard to invest even $100 at a time; and most importantly, new investors face too many choices - stock funds, mutual funds, ETFs. It's overwhelming if you're just getting started. "If we could distribute investment accounts like an app and not like traditional investment services, we could tap into a market that's been disenfranchised for a long time," Jeff says.
Jeff and his dad Walter set out to build their own platform to make investing easy and to reign in people who would otherwise be too intimidated or overwhelmed to start investing.
The app works because it takes little action on the user's part: even if you're a brand-new investor with limited knowledge of investments and economics, Acorns lets you quickly and automatically invest small amounts of money as frequently as you make purchases. Acorns charges a small monthly free - a percent of your account's balance.
Jeff tells Business Insider that the new funding will help Acorns continue to scale and innovate. He says platforms for wearables and the desktop are coming next to complement the mobile Acorns app. The company also plans to expand globally in the next 12 months. Acorns
- K'taka to adopt decentralised models for vaccine delivery
- Thackeray seeks 'national vaccine distribution policy'
- Respite for slum dwellers along Delhi railway tracks as Centre tells SC that no coercive steps will be taken against them
- Farmers threaten to block highways after Haryana issues order to seal borders with Punjab for two days
- Telangana ready to administer Covid vaccine: KCR to PM