Title: Acorns Expands Family Wealth Solutions with EarlyBird Acquisition
In an exciting move to enhance financial growth for families, savings and investing platform Acorns has officially acquired EarlyBird, a unique investment gifting service designed for families. The financial details of the deal remain under wraps, but this acquisition marks a significant step in Acorns’ mission to foster financial literacy among younger generations.
Following the acquisition, EarlyBird will cease operations, and all user accounts will be closed by June 23. Customers can expect to receive their funds back to the bank accounts linked to their EarlyBird accounts.
Founded in 2019, EarlyBird aimed to combine investment opportunities with the joys of family connection. Their innovative app allowed family and friends to gift investments to children while preserving cherished memories in a digital time capsule. Once the child reached adulthood, these funds could be used towards college tuition, a home down payment, or even launching their first business.
EarlyBird’s CEO and co-founder, Jordan Wexler, shared, "Our vision was to revolutionize how families establish enduring legacies. Joining the Acorns family not only validates our mission but also amplifies our reach to countless families eager to secure their children’s financial futures."
Wexler, along with co-founder Caleb Frankel, will now collaborate with Acorns to enhance the company’s Acorns Early initiative, a smart app dedicated to children’s financial education. Acorns Early offers a kid-friendly debit card that helps youngsters learn essential money management skills. This latest venture follows Acorns’ previous acquisition of GoHenry, a platform focused on financial education for children aged 6 to 18.
Acorns believes that Wexler and Frankel’s expertise will significantly bolster the capabilities of Acorns Early. CEO Noah Kerner expressed his excitement, emphasizing, "Our goal is to create a comprehensive financial wellness system for families, facilitating growth at every life stage. The collaboration between our teams will expedite this vision, maximizing value for everyday American families."
Existing EarlyBird users will receive a complimentary one-year subscription to Acorns Gold, which provides access to all of Acorns’ services, including Acorns Early. Detailed instructions for sign-up will be sent via email.
However, EarlyBird users will not be able to transfer their funds directly into Acorns Early. To continue their investment journey with Acorns, they will need to withdraw their funds from EarlyBird and set up a new account with Acorns.
Additionally, Acorns plans to incorporate EarlyBird’s digital time capsule feature in the Acorns Early app later on. This feature allowed users to create memory capsules by recording videos during significant life events—a heartfelt way to commemorate milestones, such as a mother’s promotion while gifting an investment to her child.
This acquisition comes on the heels of Acorns doubling the customer base for its Acorns Gold plan, which costs $12 per month and provides a suite of family-focused financial tools. Kerner highlighted, "Our Gold Plan is set to be the hub for family financial wellness, offering resources for parents, kids, and the interconnections essential to family dynamics. This is where families can cultivate smart money habits together."
Acorns, which raised $300 million in March 2022 and was valued at $2 billion at that time, has yet to release an updated valuation following this latest acquisition. As the landscape of family finance continues to evolve, Acorns is positioned to be a leader in fostering healthy financial practices for future generations.