US-based micro investing app Acorns raises $5.5M in Series B funding
Acorns has recently secured $5.5 in its second financing led by Jacobs Asset Management. The micro investing app lets its users invest in index funds using their extra change, according to Mashable.
Co-founder Jeff Cruttenden said: "We're not setting out to change peoples' behavior. I think the average person knows they should save or invest more, but it's difficult to make that commitment. We wanted to build something that could work in the background."
Acorns' beta app for iPhone and Android rounds up users' credit or debit card purchases to the nearest dollar and invests the change into index funds. Users are not required to have a minimum balance but will have to pay a meager monthly fee of $1 for the service. Acorns also gives $5 as a sign-up reward for account users, the report detailed.
The startup's app is set to be launched in the second quarter of 2014, but users can already sign up and add their email to Acorns' list, the report added.
Founded by Jeff and his father, the Newport Beach, California-based startup has just emerged from a two-year stealth mode. To date, the firm has raised a total capital of $8.3 million. Acorns currently employs 20 people, Mashable reported.