How much Acorns Earn? Let Find Out Their Net Worth

Acorns, headquartered in Irvine, California, is a prominent American financial technology and financial services company that focuses on micro-investing and robo advice.

With its innovative approach, Acorns aims to make investing more accessible and affordable for individuals, particularly those who may be new to investing or have limited funds to invest.

According to Fortune’s Impact 20 list in 2020, Acorns had an impressive customer base of 9.2 million users, signifying the platform’s popularity and widespread adoption.

As of 2022, the company’s total assets under management surpassed an impressive $7.2 billion, demonstrating its significant growth and success in the financial industry.

Micro-investing, the core strategy employed by Acorns, involves making regular and small investments to build wealth over time. This approach is well-suited for individuals who may not have substantial sums of money to invest initially, allowing them to participate in the financial markets and potentially reap the benefits of long-term investment growth.

Acorns’ commitment to making investing more inclusive and user-friendly has solidified its position as a leading player in the realm of fintech and financial services.

Brand NameAcorns
FoundersWemple Cruttenden III & Jeffrey James Cruttenden
OriginAmerican
Established In2012
ServicesStock Trading, Stock Portfolios, Investment Management, Investment portfolios
HeadquartersIrvine, California
Operational AreasAmerica
Acorns Net Worth$8 billion (Last Updated July 2023)

Acorns Net Worth

Acorns’ net worth is reported to be approximately $8 billion. It’s worth noting that net worth figures can change over time due to some factors.

Acorns Yearly Revenue

Acorns experienced significant growth from 2019 to 2020. Its revenue increased by 61%, rising from $44 million to $71 million during that period. Moreover, the company’s gross margin improved from 71% to 78% over the same time frame, indicating improved operational efficiency.

Additionally, Acorns’ pace of revenue expansion accelerated from 54% in 2019 to 61% in 2020, showcasing its continued growth momentum. The company projected that it could further scale this figure to 77% in 2021, although this information may not be entirely current due to the abandonment of its public plans.

Despite the positive revenue growth, the company anticipated challenges in terms of operating income and operating cash flow. Acorns expected its operating income to worsen by $20 million in 2021, reaching -$85 million, which indicates increased expenses. Furthermore, its operating cash flow was projected to dip from -$35 million in 2020 to -$70 million in 2021, suggesting potential cash flow challenges.

As mentioned earlier, the latest updates on Acorns’ financial performance would require up-to-date information beyond 2020, as the company’s plans might have changed since then. For the most current and accurate financial data on Acorns, it’s best to refer to recent financial reports and official sources.

Acorns Founders

Acorns was founded in 2012 by Walter Wemple Cruttenden III and his son Jeffrey James Cruttenden, with the primary goal of promoting incremental and passive investing. The platform officially launched in 2014, offering a user-friendly app for both iOS and Android devices. To design the portfolio options available to users, Acorns collaborated with Harry Markowitz, a Nobel laureate and paid advisor.

Over the years, Acorns has expanded its services beyond just micro-investing. It now includes checking account services and retirement IRA products, which became possible after the company acquired the fintech retirement startup, Vault, based in Portland, Oregon.

In 2018, behavioral economist Shlomo Benartzi took on the role of chair of a behavioral economics committee at Acorns, leading the Money Lab initiative. This initiative focused on conducting field experiments centered around consumer spending patterns.

Since its inception, Acorns has successfully secured approximately $100 million in venture capital funding. The company’s roster of notable investors includes celebrities such as Jennifer Lopez, Alex Rodriguez, Bono, Ashton Kutcher, and Kevin Durant. Additionally, significant organizations like PayPal, BlackRock, and NBCUniversal have invested in the company.

In May 2021, Acorns announced its plans to go public through a merger with Pioneer Merger Corp, a blank-check company. However, these plans were eventually canceled in January 2022, citing market conditions as the reason for the decision to put the public listing on hold.

Acorns Services

Upon registering with Acorns, users have the option to choose from various portfolios with different asset allocations. To fund their investment accounts, users can link a credit or debit card to the platform. With each purchase made using the linked card, Acorns rounds up the transaction to the next whole dollar, and the difference is automatically added to the user’s investment portfolio. Additionally, users can make manual contributions to their accounts.

Initially, Acorns charged a $1.00 fee for its services, but this offer was discontinued on September 21, 2021. As of February 21, 2022, Acorns offers personal accounts at a flat rate of $3.00 per month (equivalent to $36.00 per year). This fee structure translates to a 0.36% fee on a $10,000.00 account or a 3.60% fee on a $1,000.00 account.

For users who rely solely on Acorns’ round-ups to invest, the flat-fee structure can be particularly significant. For example, if a user makes one purchase every day for a year, the maximum amount they could contribute through round-ups (at ninety-nine cents of change on each of the 365 purchases) would be $361.35.

However, after subtracting the annual fee of $36.00, they would only have 90.04% of their contributions available in their investment portfolio, with the remaining 9.96% going toward fees. This discrepancy becomes even more pronounced when transactions yield less than ninety cents in change or when fewer than one purchase is made per day.

Acorns’ investment portfolios are comprised of passively-managed exchange-traded funds (ETFs) from third-party providers. These ETFs also have their own underlying expenses. As of February 21, 2022, Acorns’ portfolios consist of combinations of seventeen predominantly stock or bond ETFs, which are managed by Vanguard or BlackRock.

Acorns Competitors

Acorns faced competition from several other financial technology (FinTech) companies that offered similar services in the micro-investing and automated savings space. Some of Acorns’ competitors included:

  1. Robinhood: A commission-free investing platform that allows users to buy and sell stocks, cryptocurrencies, and exchange-traded funds (ETFs) without fees.
  2. Stash: Another micro-investing app that enables users to invest in fractional shares of stocks and ETFs with low minimum deposits.
  3. Betterment: An online investment platform that offers automated portfolio management, personalized advice, and goal-based investing.
  4. Wealthfront: A robo-advisor platform that provides automated investment management and financial planning services.
  5. Qapital: A savings and investment app that uses behavioral economics principles to help users save and invest based on their spending habits.
  6. Digit: An app that analyzes users’ spending patterns and automatically saves small amounts of money from their checking accounts to build savings.
  7. WiseBanyan: A free robo-advisor that offers diversified investment portfolios based on users’ risk tolerance and financial goals.

Acorns Surprising Facts

  • Founders with Family Ties: Acorns was founded by a father and son duo – Walter Wemple Cruttenden III and Jeffrey James Cruttenden. It’s not common to see such a close family connection behind a successful fintech company.
  • Nobel Laureate Collaboration: Acorns partnered with Harry Markowitz, a renowned economist and Nobel laureate, to design its portfolio options. This collaboration with a Nobel laureate adds credibility to Acorns’ investment strategies.
  • Behavioral Economics Initiatives: Acorns appointed behavioral economist Shlomo Benartzi to head a behavioral economics committee. The company launched the Money Lab initiative, conducting field experiments focused on consumer spending patterns. This shows their commitment to understanding and improving user behavior in financial decisions.
  • Celebrity Investors: Notable celebrities have invested in Acorns, including Jennifer Lopez, Alex Rodriguez, Bono, Ashton Kutcher, and Kevin Durant. Their involvement in the company speaks to Acorns’ widespread appeal and potential.
  • Rapid Growth and Expansion: Acorns has experienced significant growth since its launch in 2012. From its initial micro-investing concept, the platform has expanded to offer checking account services and retirement IRA products. Acquiring the fintech retirement startup, Vault, also contributed to its expansion into new financial services.

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