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Acorns Raises $300M As Neobanks Plug Away

Illustration of a piggy bank looking at smartphone. [Dom Guzman]

Mobile savings and investing app Acorns was one of the earlier upstarts in the neobank space to attract significant venture funding. It’s also the latest one to secure a new, really big round.

The 10-year-old, Irvine, California-based company just closed on $300 million in a Series F round led by private equity firm TPG. The fundraise comes nearly two months after Acorns scrapped plans for a public offering via a SPAC merger. 

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The new round reportedly sets a valuation of $1.9 billion for Acorns. The SPAC deal, which Acorns announced last May and included a PIPE component, would reportedly have valued the company at roughly $2.2 billion,

Acorn’s big private fundraise comes amid an increasingly sluggish exit environment for wanna-be public companies. The largest public offering by a neobank to date—Brazil’s Nubankhas been a disappointing performer. And so far this year, the U.S. IPO window looks mostly shuttered, with venture-backed tech and fintech companies largely putting plans for public offerings on hold.

Yet, by venture-backed startup standards, Acorns certainly looks ripe for exit. The company raised its Series A back in 2013 and had raised over $200 million in venture funding before this latest TPG-led round. 

Illustration: Dom Guzman

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