Acorns Raises $300M As Neobanks Plug Away

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 Nubank—has 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