Acorns raised $300 million in Series F, attains “unicorn” status

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Over 3 years after its $105 million Series E funding round, fintech startup Acorns has raised $300 million in Series F resulting in approximately a $2 billion valuation. The round was led by private equity firm TPG with backing from other investors including BlackRock, Greycroft, Owl Rock, Senator Investment Group, Torch Capital, Industry Ventures, and Bain Capital Ventures. The company is said to have raised over $500 million since its inception in 2012.

The New York-based unicorn provides an investing and savings app allowing users to easily invest in a diversified portfolio built by experts, recommended based on the individual’s long-term money goals. This year the company plans to allow customization of the portfolio to “help customers feel more engaged.”

The notable feature of the app is the “Round-Ups” function, which effectively taps into the power of compounding by automating the investment of spare change from everyday purchases, once it adds up to $5. Additionally, Acorns now allows users the option to invest in “Sustainable Portfolios” comprising funds selected based on their environmental, social, and governance business practices, i.e. their ESG ratings, thus allowing you to “invest in yourself & the planet.” The company also intends to add the option of crypto exposure, not exceeding 5%, for customers who would like to participate. “It is an uncorrelated asset class so it makes sense to include it as part of a well-balanced, diversified portfolio,” said CEO Noah Kerner.

Presently, Acorns has an employee strength of about 700 which it will continue scaling up, particularly in product development. Addressing the possibility of an IPO Kerner said that he believed it “wasn’t the right time to go public.” “As we go forward, we’re going to pursue a traditional IPO,” he added. “We think that makes the most sense going forward.”