Less than two months after announcing its integration with PayPal, micro-investing app Acorns has received an investment from TPG’s global investment fund, The Rise Fund. The company reported that this is The Rise Fund’s first social impact investment in fintech. While sharing more details about the investment, Noah Kerner, CEO of Acorns, stated:
“I believe in the American Dream; in the idea that no matter where you start, anyone can grow wealth. This investment and support from TPG’s Rise Fund, which has brought together some of the world’s most influential thought leaders committed to driving social change, will help us further deliver the tools, knowledge and inspiration to champion that idea.”
John Flynn, Principal at TPG, also commented:
“We’re very excited to partner with Acorns. Financial services is one of the seven key sectors we are targeting for The Rise Fund. Acorns is exactly the type of company we’re looking to support. They have achieved extraordinary business success characterized by rapid growth while also helping to make it easy, efficient and transparent for Americans to generate savings and build their futures.”
TPG Growth Founder and Managing Partner Bill McGlashan, U2 lead singer Bono, a well-known activist and a special partner with TPG Growth, and Jeff Skoll a global entrepreneur, film producer, and impact investor, co-founded The Rise Fund. TPG has $75 billion in total assets.
Acorns also announced it recently acquired Vault, a Portland-based tech company, which lets customers automatically invest part of their paycheck into a retirement fund. The company revealed that through the acquisition it is now looking to launch an IRA that’s designed for its upcoming product, Acorns Later.
Acorns did not disclose the amount of The Rise Fund’s investment.