Acorns, a startup focused on savings and investing, has acquired EarlyBird, a platform that enables families to gift investments. The financial details of the acquisition remain undisclosed. Following this swap, EarlyBird will cease operations, and customer accounts will be officially closed by June 23, with funds being returned to users’ registered bank accounts.
Established in 2019, EarlyBird offered a unique service that blended investment opportunities with community engagement, allowing friends and family to gift investments to children while also creating lasting memories through digital time capsules. These investments would be fully accessible to the child once they reached 18, intended for significant life expenses like college or a first home.
Jordan Wexler, EarlyBird’s CEO and co-founder, expressed that the merger with Acorns aligns with their original vision, broadening the reach to numerous families committed to their children’s financial futures. Wexler, alongside co-founder Caleb Frankel, will join Acorns to help enhance Acorns Early, a money management app aimed at children and teens that promotes financial literacy. This development follows Acorns’ earlier acquisition of GoHenry, a service catering to financial education for young people aged 6 to 18.
Acorns CEO Noah Kerner highlighted the company’s ambition to establish a comprehensive financial wellness system for families. By integrating the insights and expertise from the EarlyBird founders, they aim to fortify Acorns Early and accelerate delivery of services that generate substantial value for American families.
Existing EarlyBird customers will receive a complimentary one-year subscription to Acorns Gold, which grants access to all Acorns products, including Acorns Early. However, these users will need to withdraw their funds from EarlyBird to establish new accounts with Acorns, as transferring funds directly is not an option.
Looking ahead, Acorns plans to incorporate EarlyBird’s digital time capsule feature into the Acorns Early app. This feature allowed users to document meaningful life moments in video form to accompany their investment gifts, such as celebrating a promotion with a special video message for a child.
This acquisition comes at a time when Acorns reports significant growth, having doubled its customer base for the Acorns Gold subscription service within the past year. Kerner noted that the Gold Plan aims to create an inclusive space for all family members to manage their finances together, fostering smart money habits for family members of all ages.
In a notable fundraising effort in March 2022, Acorns raised $300 million, attaining a valuation of $2 billion, though an updated valuation has not been released since then.
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