Acorns Grow Raises $5.5 Million in Private Placement

Digital Offering, a next generation, technology-driven investment bank, has announced that its client, Acorns Grow Incorporated, successfully completed its private placement of Series B Preferred Stock. Acorns is the first micro-investing platform which allows people to harvest, save and invest small amounts of money on the fly and has raised the maximum offering amount of $5.5 million. Digital Offering acted as co-placement agent in the offering along with its affiliate, Euro Pacific Capital, Inc.

Acorns designed and developed a micro-investing platform that allows people to sweep sub-dollar amounts at high frequency into a portfolio of index funds offered by three of the world’s largest money managers: Blackrock, Vanguard and PIMCO heretofore thought to be impossible or uneconomical to gather and invest in this manner. Offered via a mobile application, Acorns is connected to a proprietary financial engine, which allows customers to automatically round-up loose change from credit and debit card purchases, gather and collect rebates (and eventually certain other forms of found money), and sweep these micro amounts into their investment portfolio.

The net proceeds from the offering will be used for, among other things, the launching by Acorns of its mobile app which is expected to occur during the first half of 2014.

“We are delighted to announce the completion of our first deal on the Digital Offering platform” commented Gordon McBean, CEO of Digital Offering, “It was also a great experience working with Acorns’ management team on the transaction. We are excited at the prospects for the business and feel that its upcoming launch will generate a lot of excitement in the financial community and beyond.”

“The recent title changes to the JOBS Act have opened up the opportunity for startups to get up and running faster with access to more capital,” said Walter Cruttenden, Cofounder and CEO of Acorns. “Our oversubscribed round speaks volumes to the popularity of crowdfunding and we see it emerging as the new way for tech startups to increase their fund raising and the size of transactions. The technology industry is a dynamic one and the investment banking community needs to compliment the culture and pace of the industry they serve.”