Acorns Acquires EarlyBird to Enhance Family Finance Platform
Fintech company Acorns has acquired EarlyBird, a platform designed for families to gift investments to children. This acquisition will bolster Acorns' family finance offerings, specifically its Acorns Early platform.
EarlyBird will cease operations on June 23, 2024. All customer accounts will be closed, and funds returned to the connected bank accounts. Existing EarlyBird customers will receive a free one-year subscription to Acorns Gold, providing access to all Acorns products, including Acorns Early.
EarlyBird Founders Join Acorns
EarlyBird CEO and co-founder Jordan Wexler and co-founder Caleb Frankel will join the Acorns team. They will focus on developing and expanding Acorns Early, a smart money app designed to promote financial literacy for kids and teens.
“When we founded EarlyBird, we envisioned transforming how families build legacies for their children,” stated Wexler. “Joining Acorns expands our impact to millions of families focused on their children's financial futures.”
Acorns CEO Noah Kerner highlighted the strategic fit:
“Our vision is to build a comprehensive financial wellness system for families, creating compound growth at every life stage. This acquisition will accelerate our ability to deliver this vision and create maximum value for families.”
Integration and Future Plans
While EarlyBird funds cannot be directly transferred to Acorns Early, users can withdraw their funds and open new Acorns accounts. Acorns plans to integrate EarlyBird's digital time capsule feature into Acorns Early. This feature allows families to record videos commemorating special moments alongside investment gifts.
This acquisition follows a period of significant growth for Acorns, with its Gold subscription plan doubling its customer base in the past year.
“Our Gold Plan will be the central hub for family financial wellness – offering products for parents, kids, and the entire family unit,” stated Kerner. “This is where families can manage their money and develop smart money habits together.”
Acorns previously raised $300 million in March 2022, reaching a $2 billion valuation at the time. An updated valuation was not provided.
