How does acorn make money

Acorns operates a platform that allows members to invest by saving small amounts of money on a regular basis. This method is called small investment, saving for retirement. The website also provides basic banking services at a low cost. The company divides its services into three main categories. The first one enables members to invest change in exchange-traded funds (ETFs).The second one allows users to create and fund IRAs through the platform,The third type provides members with debit cards provided by companies such as Visa, Inc. (V).Acorns offers subscription services of $1, $3 and $5 per month for different service packages.

Key points

  • Acorns provides a platform for members to invest their change in a diversified investment portfolio to increase their wealth.
  • The company also provides retirement savings accounts, debit cards and other basic banking services.
  • Acorns generates revenue through membership subscription fees.
  • Acorns is an example of a fintech company specializing in small investments.

Acorn Industry

Acorns is a fintech company known for its micro-investment platform that allows users to set automatic investments into a portfolio through Round-Ups: Acorns rounds debit or credit card purchases made on the associated card to the nearest dollar And on behalf of the member’s investment change.The investment is included in one of five portfolios with different levels of risk.Acorns is one of many fintech companies focused on millennial investors, including Robinhood Markets, Inc. and Stash Financial, Inc.

Acorns is very attractive to millennials and newcomers in other investment fields, who may not have a lot of funds to retire. Acorns’ goal is to allow users to invest early and often with minimal effort.On average, Acorns members invest more than $30 a month through the company’s iconic program Round-Ups.

Fundraising and Finance

As of March 2021, Acorns has more than 6.8 million users, up from 4.6 million in the previous year. One million of these accounts hold IRAs through the platform. The company said that to date, it has invested more than $1 billion through its platform. According to Crunchbase data, Acorns has already received 10 rounds of financing. The company has raised hundreds of millions of dollars from backers including NBCUniversal Media LLC, Paypal Holdings Inc. (PYPL) and Black Rock Inc. (BLK), and as of the most recent fundraising, its valuation is $860 million . Acorns’ valuation has surpassed that of Fintech rival Betterment.

History and leadership

Acorns was founded by father-son entrepreneurial team Walter and Jeff Cruttenden and launched in 2014.Father Walter also founded Roth Capital, an investment banking company, and was the founder and CEO of E*Trade’s investment banking division.The company is now led by CEO Noah Kerner, who previously led the creative brand agency Noise and served as WeWork’s chief strategy and marketing officer.As part of the effort to expand Acorns’ user base to 100 million customers, Kerner has attracted investors including well-known celebrities such as Jennifer Lopez and Alex Rodriguez.

Recent development

In October 2020, Acorns announced a partnership with the online job market ZipRecruiter. The partnership will allow Acorns users to browse and apply for jobs in its app.

In 2019, Acorns began to establish a new partnership with CNBC to provide a wider audience with more information about investment and finance through Acorns’ Grow website. As of June 2019, Kerner stated that Acorns does not intend to go public.

How Acorns reports on diversity and inclusion

As part of our efforts to raise awareness of the importance of company diversity, we give investors a glimpse of Acorns’ transparency and its commitment to diversity, inclusion and social responsibility. We checked the data published by Acorns. It indicated that Acorns did not disclose any data about its board of directors, top management, general management and overall employee diversity. It also showed that Acorns did not reveal its diversity through race, gender, ability, veteran status, or LGBTQ+ status.

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