Acorns Acquires Earlybird: Expanding Financial Wellness & Legacy Planning

Acorns Acquires EarlyBird, Expanding Family Financial Services

Acorns, a savings and investment platform, has completed the acquisition of EarlyBird, a platform focused on investment gifting for families. This information was shared with TechCrunch on an exclusive basis, though the specific financial details of the transaction remain undisclosed.

EarlyBird to Cease Operations

Following the acquisition, EarlyBird will be discontinued, with all user accounts scheduled to close on June 23rd. All funds held within EarlyBird accounts will be returned to the original bank accounts linked to those accounts.

EarlyBird’s Innovative Approach

Established in 2019, EarlyBird distinguished itself by merging financial investment with a community-focused approach. The application enabled family members and friends to contribute investments to children, simultaneously preserving cherished memories through a digital time capsule feature.

These investments were designated to become the child’s property upon reaching the age of 18, providing resources for future endeavors such as college tuition, a home down payment, or initial business funding.

Vision Alignment and Future Integration

“Our initial vision for EarlyBird centered on establishing a platform that would redefine how families create enduring legacies for their children,” stated Jordan Wexler, CEO and co-founder of EarlyBird. “Joining forces with Acorns not only validates this vision but also significantly broadens our impact, reaching millions of families who prioritize their children’s financial well-being.”

Wexler and co-founder Caleb Frankel will be integrating into the Acorns team, focusing on the development of Acorns Early, the company’s financial application designed for children.

Strengthening Acorns Early

Acorns Early currently features a debit card tailored for kids and teenagers, aiming to foster financial literacy and responsible money management. The launch of Acorns Early followed the acquisition of GoHenry, a company specializing in financial education and money management services for individuals aged 6-18.

Acorns anticipates that the expertise and dedication of Wexler and Frankel will be instrumental in enhancing the capabilities of Acorns Early.

A Holistic Financial Wellness System

“Our objective is to construct a comprehensive financial wellness system for the entire family, fostering growth at every stage of life,” explained Noah Kerner, CEO of Acorns, in a communication to TechCrunch. “The combined experience and insights of both teams will accelerate our ability to realize this vision and deliver maximum value to American families.”

Offer for Existing EarlyBird Users

Current EarlyBird customers will receive a complimentary one-year subscription to Acorns Gold, granting access to the full suite of Acorns products, including Acorns Early. Detailed instructions regarding the sign-up process will be distributed via email.

It is important to note that a direct transfer of funds from EarlyBird to Acorns Early is not available. Users wishing to continue investing with Acorns will need to withdraw their funds from EarlyBird and establish a new account.

Digital Time Capsule Feature

Acorns intends to incorporate EarlyBird’s digital time capsule functionality into the Acorns Early application in the future. This feature allowed users to create time capsules by recording videos during significant life events.

For instance, a parent celebrating a promotion could record a video message to their child alongside a one-time investment, preserving the moment for posterity.

Growth and Future Plans

This acquisition occurs as Acorns has experienced a doubling of its customer base for Acorns Gold, its $12 monthly subscription plan, over the past year.

“The Acorns Gold plan will serve as the central hub for delivering financial wellness solutions for the whole family—products for parents, children, and the connections between them,” Kerner stated. “It will be the platform where families can collectively manage their finances and cultivate smart money habits.”

Acorns secured $300 million in funding in March 2022, with a valuation of $2 billion at that time. The company has not yet released an updated valuation figure.